At the end of 2024, the renowned restaurant chain TGI Fridays has announced a drastic restructuring plan that includes the definitive closure of 50 stores in USA and Colombia. This move seeks to save the company’s global operation in the midst of a crisis that has worsened since the Covid-19 pandemic.
The impact of the pandemic and low sales
TGI Fridaysan iconic brand in the casual restaurant industry with a presence in countries such as Mexico, Argentina, Spain and Colombiahas been severely affected by changes in consumer habits and public demands in recent years.
As explained Rohit Manochaexecutive president of the company, the pandemic not only affected sales, but also complicated the sustainability of stores in key markets.
The closure of the stores in the United States leaves the chain with 113 operating establishments in the country, while the international franchises will not suffer significant modifications, since they operate independently.
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The viability plan: apply for Chapter 11 of the Bankruptcy Law
To face this crisis, the company has decided to file for chapter 11 of the US Bankruptcy Lawa legal remedy that allows companies to reorganize their debts and operations while maintaining their operation.
This step seeks to guarantee the survival of TGI Fridays in the long term and avoid more store closures in other international markets.
In Colombia, closures have been confirmed in several cities, leaving many consumers without access to their restaurants favorites.
However, the company assures that its franchises in 56 countries (including Mexico and Spain) will continue to operate normally, since they operate under licensing agreements that are not directly linked to the operation in the United States.
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Transformation in the restaurant industry
The TGI Fridays case highlights the challenges facing the restaurant industry in a constantly changing global market. Competition with new gastronomic options, the preference for delivery and fast food, and the demands for more sustainable proposals have forced many traditional chains to reinvent themselves.
Despite this critical situation, TGI Fridays seeks to consolidate itself as a viable and profitable business in the future, prioritizing the customer experience and adapting to new market demands.
