1851

<a href="https://1851franchise.com/franchise-deep-dive-tgi-fridays-franchise-costs-fees-profit-and-data-2722651">TGI Fridays</a>, the well-known casual dining chain,&nbsp;<a href="https://www.usatoday.com/story/money/2024/11/04/tgi-fridays-bankruptcy-closures/76050421007/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=tgi-fridays-is-the-latest-fast-casual-franchise-to-file-for-bankruptcy-2727858" target="_blank" rel="nofollow">filed for Chapter 11 bankruptcy</a> following a failed merger with its largest franchisee. This restructuring move is aimed at stabilizing the company's financial health after ongoing struggles, partly attributed to the lingering impacts of the COVID-19 pandemic.&nbsp; The bankruptcy filing was made in the Northern District of Texas, where&nbsp;<a href="https://tgifridays.com/franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=tgi-fridays-is-the-latest-fast-casual-franchise-to-file-for-bankruptcy-2727858" target="_blank" rel="nofollow">TGI Fridays</a> aims to reorganize its finances and streamline operations. The company owns 39 corporate locations, while the remaining 422 franchised restaurants across 41 countries will continue to operate unaffected by the filing.Executive Chairman&nbsp;<a href="https://www.linkedin.com/in/rohit-manocha-773b7817a?utm_source=1851franchise.com&utm_medium=article&utm_campaign=tgi-fridays-is-the-latest-fast-casual-franchise-to-file-for-bankruptcy-2727858" target="_blank" rel="nofollow">Rohit Manocha</a> emphasized that the restructuring process is essential for protecting stakeholders, franchisees, and employees, allowing corporate locations to work towards their "full potential." The filing reveals that TGI Fridays owes significant amounts to creditors — primarily in rent payments and fees to digital marketing firms such as Digitas and DoorDash, with total liabilities estimated between $100 million and $500 million.A&nbsp;<a href="https://restaurantbusinessonline.com/financing/tgi-fridays-acquisition-hostmore-suddenly-question?utm_source=1851franchise.com&utm_medium=article&utm_campaign=tgi-fridays-is-the-latest-fast-casual-franchise-to-file-for-bankruptcy-2727858" target="_blank" rel="nofollow">potential acquisition by Hostmore</a>, a UK-based franchisee, was initially expected to provide relief but fell through in September after TGI Fridays lost control over key assets.&nbsp;<a href="https://www.insidemortgagefinance.com/articles/232072-tgi-fridays-losses-control-of-assets-in-whole-business-securitization?utm_source=1851franchise.com&utm_medium=article&utm_campaign=tgi-fridays-is-the-latest-fast-casual-franchise-to-file-for-bankruptcy-2727858" target="_blank" rel="nofollow">Citibank’s termination of TGI Fridays' 2017 whole business securitization management</a> impacted the predictability of revenue from royalties, which Hostmore had seen as a core value in the acquisition. Hostmore subsequently filed for its own bankruptcy equivalent, further complicating the situation.&nbsp;Full-service restaurant chains across the U.S. are facing&nbsp;<a href="https://time.com/7172240/chain-restaurants-struggles/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=tgi-fridays-is-the-latest-fast-casual-franchise-to-file-for-bankruptcy-2727858" target="_blank" rel="nofollow">serious financial pressures</a>, driven by rising labor costs and shifting consumer behavior. Inflation, while slowing, has pushed many customers to choose more budget-friendly fast-food options or to dine at home, leaving sit-down chains struggling to compete.&nbsp;The demands of private equity ownership has also added further strain on these brands. Chains like TGI Fridays,&nbsp;<a href="https://stachecow.com/did-private-equity-kill-red-lobster-429?utm_source=1851franchise.com&utm_medium=article&utm_campaign=tgi-fridays-is-the-latest-fast-casual-franchise-to-file-for-bankruptcy-2727858" target="_blank" rel="nofollow">Red Lobster</a> and&nbsp;<a href="https://1851franchise.com/is-hooters-a-profitable-franchise-investment-2716418">Hooters</a>, acquired by private equity firms in recent years, are burdened with debt from leveraged buyouts, making it difficult to generate the cash flow needed to sustain operations. TGI Fridays has shrunk by over half since 2019, while Hooters has also reduced its footprint significantly. As debt-laden sit-down chains try to adapt to an evolving market, the traditional casual dining model faces significant headwinds.Read the original article&nbsp;<a href="https://www.usatoday.com/story/money/2024/11/04/tgi-fridays-bankruptcy-closures/76050421007/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=tgi-fridays-is-the-latest-fast-casual-franchise-to-file-for-bankruptcy-2727858" target="_blank" rel="nofollow">here</a>.&nbsp;Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit<a href="https://www.1851growthclub.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=tgi-fridays-is-the-latest-fast-casual-franchise-to-file-for-bankruptcy-2727858" target="_blank" rel="nofollow">&nbsp;www.1851growthclub.com</a> and start your journey.

TGI Fridays Files for Bankruptcy: Exploring the Financial Pressures Facing Casual Dining Chains

1851 Franchise

Labor expenses, inflation and private equity pressures are forcing beloved restaurant brands like TGI Fridays and Red Lobster into bankruptcy, while others close stores to stay afloat.

TGI Fridays Is the Latest Fast Casual Franchise to File for Bankruptcy

tgi-fridays-is-the-latest-fast-casual-franchise-to-file-for-bankruptcy

Filta Environmental Kitchen Solutions

Filta Environmental Kitchen Solutions Ranks #213 on Entrepreneur Magazine's 2025 Franchise 500® List

filta-environmental-kitchen-solutions-ranks-213-on-entrepreneur-magazines-2025-franchise-500-list

Shuckin' Shack

Shuckin' Shack Plans Expansion to Fayetteville, North Carolina

shuckin-shack-plans-expansion-to-fayetteville-north-carolina

Children's Lighthouse

Explaining the FDD: How to Read Children's Lighthouse's Franchise Disclosure Document

explaining-the-fdd-how-to-read-childrens-lighthouses-franchise-disclosure-document

Strategic Franchising

How To Choose the Right Franchise for You With Strategic Franchising Systems

how-to-choose-the-right-franchise-for-you-with-strategic-franchising-systems

Pigtails & Crewcuts

Pigtails & Crewcuts’ 20th Anniversary: A Look Back Through the Last 20 Years With CEO Wade Brannon

pigtails-crewcuts-20th-anniversary-a-look-back-through-the-last-20-years-with-ceo-wade-brannon

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

Login

facebook

instagram

twitter

linkedin

youtube

1851 Agg - Empower Brands 6 Franchises Named to FBR's 2025 Top Franchises List - 1851 Franchise

Empower Brands Celebrates Six Franchises Named to Franchise Business Review’s 2025 Top Franchises List

empower-brands-celebrates-six-franchises-named-to-franchise-business-reviews-2025-top-franchises-list

DOJ FTC Antitrust Guidelines - Franchise News - 1851 Franchise

DOJ and FTC Issue New Antitrust Guidelines with Implications for Franchising

doj-and-ftc-issue-new-antitrust-guidelines-with-implications-for-franchising

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025 - 1851 Franchise

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025

paris-baguette-ranks-among-top-franchises-on-entrepreneurs-franchise-500-for-2025

Yum Brands - KFC - Pizza Hut - Terminates Franchise Agreements in Turkey - 1851 Franchise

Yum! Brands Terminates Franchise Agreements in Turkey Due to Non-Compliance

yum-brands-terminates-franchise-agreements-in-turkey-due-to-non-compliance

Recent Franchise News - Why Franchisors Churn Through Marketing Suppliers - 1851 Franchise

Forbes: Four Reasons Why Franchisors Churn Through Marketing Suppliers

forbes-four-reasons-why-franchisors-churn-through-marketing-suppliers

I Heart Mac and Cheese - Franchisees Sue I Heart Mac and Cheese - Franchise News - 1851 Franchise

Restaurant Business Online: Franchisees Sue I Heart Mac and Cheese

restaurant-business-online-franchisees-sue-i-heart-mac-and-cheese

Lucas Hamm Brings Compassionate Care to Eagan, Minnesota with Right at Home Franchise

lucas-hamm-brings-compassionate-care-to-eagan-minnesota-with-right-at-home-franchise

Military Veteran and Craft Beer Enthusiast to Bring Voodoo Brewing Co. to Toledo, Ohio

military-veteran-and-craft-beer-enthusiast-to-bring-voodoo-brewing-co-to-toledo-ohio

How a Hotel Valuation Expert Accidentally Found Success with the Sola Salons Franchise

how-a-hotel-valuation-expert-accidentally-found-success-with-the-sola-salons-franchise

Local Mother To Open USA Ninja Challenge Franchise in Woodstock, Georgia

local-mother-to-open-usa-ninja-challenge-franchise-in-woodstock-georgia

Franchise Deep Dive: The UPS Store Franchise Costs, Fees, Profit, and Data

franchise-deep-dive-the-ups-store-franchise-costs-fees-profit-and-data

TGI Fridays Is the Latest Fast Casual Franchise to File for Bankruptcy

MORE STORIES LIKE THIS