Abrupt Closure Announcement
TGI Fridays announces the sudden closure of 36 locations across 12 states, citing underperformance and strategic growth considerations.
Employee Support and Transfer Opportunities
As part of the closures, TGI Fridays is committed to supporting its workforce by offering over 1,000 transfer opportunities, ensuring over 80% of impacted employees have options for continued employment.
Leadership Changes and Former CEO’s Role
Major leadership changes within the company coincide with the closures, including the appointment of Weldon Spangler as CEO. Additionally, former CEO Ray Blanchette plays a role in the transition, acquiring eight locations in a strategic move.
Menu Revamp and Brand Revitalization
Recent months saw TGI Fridays undergoing a menu revamp, introducing bold and appealing food options, including new appetizers, salad and bowl entrees, and non-alcoholic beverages. The company emphasizes ongoing efforts to revitalize the brand.
Private Ownership and Financial Projections
Being privately owned by TriArtisan Capital Advisors, TGI Fridays keeps its financial results private. However, the company projected total sales of $1.6 billion in 2022, with an 8% growth in same-store U.S. sales compared to 2019.
Impact on States and Locations Affected
The list of closed stores spans several states, with New Jersey, Massachusetts, and New York being the most affected. TGI Fridays addresses the impact on specific locations and its commitment to navigating industry changes.
Future Outlook and Growth Initiatives
Despite closures, TGI Fridays remains optimistic about its future. The brand aims to position itself for sustained growth and success in an evolving restaurant industry, balancing closures with strategic initiatives.