New York CNN –
Some TGI Fridays fans were probably surprised this week to discover that their local restaurant was permanently closed because the chain abruptly closed dozens of locations across the United States.
The chain said in a news release that it closed 36 “underperforming” restaurants as part of its “continuous growth strategy,” which included restructuring its leadership and selling some restaurants back to its former CEO.
TGI Fridays has not released a list of closed locations, but local media reports indicate that New Jersey was the hardest hit, with seven locations closed, six in Massachusetts closed and five in New York also closed. This reportedly included some locations in California, Colorado, Florida, Texas and Pennsylvania closed.
Before the closures, TGI Fridays had about 270 locations in the U.S. — a presence that has declined in recent years. About 80% of all “affected employees” were offered transfer options, the company said.
“Our top priority has always been to provide a first-class experience for every single TGI Fridays guest, and we have identified opportunities to optimize and streamline our operations to ensure we are best positioned to deliver on this brand promise – and to “We will exceed our expectations,” Ray Risley, U.S. president and chief operating officer, said in the press release.
Other changes implemented at the nearly 60-year-old chain include the sale of eight previously company-owned locations, all in the Northeast United States, to its former CEO Ray Blanchette. He was managing director of TGI Fridays for five years until May 2023.
Blanchette has an “unmatched understanding of TGI Fridays' business and the restaurant's commitment to providing guests with excellence,” the chain said of the sale, adding that it will “lead the locations into a new phase of revitalization.” .
TGI Fridays is privately owned by TriArtisan Capital Advisors, a private equity firm, so no financial results are disclosed. However, the company said last year that total sales were expected to reach $1.6 billion in 2022, with U.S. same-store sales increasing 8% compared to 2019.
To keep up with its competitors, particularly Applebee's and Chili's, the company has also revamped its menu in recent months by adding sushi, refreshing the cocktail menu and revamping its entree selection.