It seems like many restaurant brands have a moment but can’t evolve to remain relevant.
Chains that were once very popular like Ground Round, Chi-Chis, Friendly’s, Howard Johnson’s, and so many others hold a place in peoples’ hearts, but nostalgic fondness does not equal current success.Â
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All of these chains are either gone or have dwindled to much smaller amounts of locations than they had in their heydays.
In fact, while certain huge fast-food chains, including McDonald’s, Burger King, Taco Bell, and Wendy’s, seem enduring, most restaurant chains seem to have a shelf life unless they reinvent themselves. Howard Johnson’s, for example, was where you stopped on a long road trip for decades.
There were other options, like Denny’s and the Big Boy chain, but HoJo’s, as it was known, was sort of ubiquitous until it wasn’t. Restaurant concepts can’t really be owned.
If one company has a good idea for a place to eat, that pretty much guarantees competition. Think how many chains have copied Chipotle’s make line and tried to bring that concept to other types of food.
It has worked in certain cases and has not diluted interest in the original brand, but history shows that over time, it’s very hard for restaurant chains to stay popular and relevant.
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TGI Fridays was a restaurant pioneer
TGI Fridays was a leader in the fast-casual, sit-down space. Instead of being a family restaurant like Friendly’s or Ground Round, TGI Fridays was heavily built around its bar.
It’s not exactly a sports bar, but it borrows heavily from that concept. That was a fairly novel idea in 1965 when the chain first opened its doors in New York.
The company remains proud of its heritage.
“As the original casual dining bar and grill, TGI Fridays offers authentic American food and legendary drinks, served with genuine personal service. Bringing people together to socialize and celebrate the freeing and liberating spirit of ‘Friday’ was the concept’s founding premise, from which the brand promise ‘In Here, It’s Always Friday’ was born,” the chain shared on its website.
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The problem is that TGI Fridays showed that there was a demand for a family-friendly restaurant built around a bar and a good-time vibe. That paved the way for dozens, maybe hundreds, of competitors.
TGI Fridays lost its way somewhere in the 2000s when its food quality slipped and rivals like Chili’s, Ruby Tuesday, and even Applebees took some of its audience.Â
Innovative chain gets smaller
After a series of reinvention plans failed (unlimited appetizers being the most notable), TGI Fridays filed for Chapter 11 bankruptcy in Nov. The chain is expected to survive, but it has plans to close or has already closed around 130 restaurants.
The court filing only impacts the chain’s U.S. restaurants.
“TGI Fridays Franchisor, LLC has franchised the brand to 56 franchisees in 41 countries. All of these franchise locations, both domestic and international, are independently owned and therefore not included in TGI Fridays Inc.’s Chapter 11 process. They are open and serving customers as usual,” the chain shared in a press release.
U.S. operations, however, are greatly impacted. The chain has arranged financing to operate the stores it’s keeping open and to pay to close the ones that are not profitable.
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“The Company has secured a commitment for debtor-in-possessionfinancing to support operations while proceeding through the Chapter 11 process. It also filed motions with the Bankruptcy Court that, when approved, will allow the company to, among other things, continue its customer programs in the normal course,” it shared.
In most cases, the restaurants closing down are locations where the chain’s lease makes profitable operations impossible. The company has not fully decided which locations will close and some closures are dependent upon court rulings.
