TGI Friday’s Files For Bankruptcy Amid Rising Costs, Competition Pressure
TGI Friday’s Files For Bankruptcy Amid Rising Costs, Competition Pressure
TGI Friday’s Inc. filed for Chapter 11 bankruptcy on November 2 in Texas, citing challenges from cost-sensitive consumers and fierce competition. The well-known casual dining chain, which has struggled to meet its debt obligations, lists assets between $100 million to $550 million and liabilities in the range of $100 million to $500 million, according to a Bloomberg report.
TGI Friday’s is facing tough conditions due to shifting consumer habits in the face of rising living costs. Many consumers are now choosing lower-cost dining options or opting to eat at home instead. The chain also faces increased competition from fast-casual options which have attracted diners with faster service and affordable prices.
Reports indicate that as early as October 31, TGI Friday’s was “running out of funds to meet its debt obligations,” with an independent auditor’s report in June 2024 noting significant financial strain. The company has yet to respond to queries on the bankruptcy filing.
This move puts TGI Friday’s among several other well-known restaurant chains that have filed for bankruptcy due to similar pressures.
