Sunday, December 8, 2024
TGI Fridays in Rockville Centre is among nearly 50 locations across the country that closed this past week, ahead of news that the casual dining chain filed for Chapter 11 bankruptcy protection on Saturday.
Rohit Manocha, executive chairman of TGI Fridays, said that the primary source of the Dallas-based company’s financial challenges stem from the Covid-19 pandemic and structural capital issues.
“The next steps announced today are difficult but necessary actions to protect the best interests of our stakeholders, including our domestic and international franchisees and our valued team members around the world,” Manocha said in a press release. “This restructuring will allow our go-forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential.”
TGI Fridays will use the time and legal protections provided through the restructuring process to “explore strategic alternatives to ensure the long-term viability of the brand.”
The Rockville Centre location at 761 Sunrise Highway, was removed from the company’s online store locator as of last week. Outside the building, a sign reads: “We regret to inform you that Fridays has made the difficult decision to close our doors.”
It is a major setback for the chain, which has been a staple in the casual dining sector since the 1960s. However, it has seen a dramatic downsizing over the past decade, according to Newsday — dropping from 500 restaurants in 2014 to just 154 remaining locations.
TGI Fridays also closed its Westbury location this past week. Three other corporate-owned locations in Bay Shore, Islandia, and Massapequa Park also closed back in January. Despite the ongoing restructuring, Fridays representatives will continue to operate in parts of Long Island, including locations in Valley Stream, Islip, Farmingville and Riverhead.
Experts attribute the closures as part of a larger trend affecting the casual dining industry. Bloomberg Law reporter Alex Wolf, who wrote about the Red Lobster bankruptcy in May, said that rising food and labor costs, coupled with shifting consumer behavior, have left many brands struggling.
He said the pandemic is “often cited as the genesis of despair, as many restaurants have struggled to adapt to changing consumer behavior, like spikes in delivery or takeout orders and diminished weekday lunch crowds.”
For now, the company’s remaining Long Island locations are unaffected, but the closures underscore TGI Fridays' precarious state and the wider difficulties confronting the casual dining sector.
