A popular American dining chain that residents across the country have enjoyed for decades has seen unprecedented changes in recent years, making consumers concerned about its future.
The Chili’s rival is desperate to appeal to consumers and has deleted 85% of its menu. This pivot is to survive in a fiercely competitive market. After years of declining foot traffic, closing locations, and consumers changing habits, this was the only logical move for the restaurant chain.
Locations Close
Just over a year ago, the restaurant chain had locations across the United States that captivated a wide audience. However, looking at today’s locations, only a fraction remain open, going from nearly 270 locations to just 85 open today. According to CNN, 185 locations have been lost in just over a year, marking a substantial fall from its peak of 600 nearly twenty years ago.
Locations closing their doors risk displacing many loyal customers, and for those in unaffected areas, the revamp of the menu could be the nail in the coffin if it backfires.
TGI Fridays
TGI Fridays has carved out a niche in America as an easygoing bar-and-grill. But now, the restaurant chain is having to make drastic cuts just to stay afloat.
While the company has not filed for Chapter 11 bankruptcy, it has undergone significant restructuring in response to ongoing financial pressures. Official statements say that the revamping is to ensure “long-term sustainability,” but whether or not it’s enough, only time will tell.
Rationales Behind It All
TGI Fridays is a shadow of its former self for a number of reasons. The company couldn’t keep up with labor costs increasing, the downturn from the recent pandemic, and the arising management complexities.
TGI Fridays has had three different CEOs in just one year, showcasing the complex problems that are happening behind the scenes. While all of this has been going on, consumers haven’t been waiting around and have pivoted towards other dining options. The company has looked at the menu and decided to make radical changes to keep it updated.
The Menu
Long-time TGI Fridays fans who feel nostalgic about the menu will notice the revamp. According to CEO Ray Blanchette, 85% of the menu has been cut and changed in some way. The new menu has updated classics that consumers used to love.
Options will be more streamlined than ever before as the restaurant chain tries to prioritize quality and efficient dining. This gamble could pay off as patrons experience better service, but at the cost of less variety.
People Affected
The cuts made by the company do have an impact on real-world people. With many locations closing down, thousands of employees are being laid off.
This puts the livelihood of many in uncertainty, and patrons who became accustomed to the restaurant have watched it vanish before their eyes. The chain’s dominance over the market has declined significantly.
Declining Sales
The decline that TGI Fridays has faced has been a long and arduous one. For the last ten years, sales have gone down. To exacerbate this, over 50% of U.S. locations were shuttered, and 63% of sales declined from 2008 to 2023.
The company also faced a failed merger, and efforts to modernize were met with mixed results. The pandemic was the last thing that the restaurant chain needed, ending up bringing in figures far below what was satisfactory.
The New Plan
While TGI Fridays has faced significant challenges after bankruptcy, low traffic, and more competition than ever, there is still a glimmer of hope.
The restaurant’s leaner menu, new branding, and focus on customer satisfaction could bring people back and raise profit margins again. This is far from everything that the company has planned, according to CEO Blanchette.
A Battle For Survival
TGI Fridays isn’t alone in facing this crisis – many other restaurant chains are battling as casual dining starts to wane while consumers look to competitors.
The franchise-led operation’s American locations are spread thin, with international ones outnumbering them. Still, this could be a good thing, as leaner operations lowers overall costs.
What Can Consumers Expect
For consumers, this change will be noticeable, as menu items and locations disappear. However, the future could be bright for the franchise, as if the changes are successful, TGI Fridays could make the comeback we’re all hoping for.
The franchise needs this innovation, or it could become a distant memory in a long line of failed restaurant franchises.