Inside TGI Fridays’ Plan To Bounce Back From Bankruptcy

The TGI Fridays bankruptcy filing back in November 2024 has not stopped the company from making plans for a comeback.

In a recent report for Business Insider, the company’s CEO, Ray Blanchette, who recently returned to the role after stepping away following the Chapter 11 filing, shared a few ways he plans to stage the comeback. First, he said driving top-line sales is his “No. 1 priority” for the chain’s recovery. Growing sales is difficult, but Blanchette is encouraged by development in the casual dining business, citing chains such as Chili’s, which reported a substantial 31.4% gain in same-store sales at the start of the year.

“We’ve seen some great progress in the restaurants that I own, and we are fortunate to have seen a meaningful turnaround in same-store sales this year,” he said. “We think that as we’re learning, we can build off of that and continue to grow sales in a powerful way.”

He wants customers and franchisees to focus on the fun, lighthearted element of TGI Fridays’ brand rather than the bankruptcy case itself. Blanchette emphasized the chain’s expanding international presence, which includes 391 outlets in 41 countries.

In addition, TGI Fridays is unveiling a new menu, which will be available beginning May 13. Blanchette’s new consumer focus, he said, is on the Gen Z consumer, whom he called “a generation with a very high food IQ.”

If Red Lobster Can Stage a Comeback, So Can TGI Fridays

If Red Lobster’s example is to be believed, TGI Fridays is more than capable of recovering from the brink of bankruptcy.

Damola Adamolekun, the restaurant’s new 35-year-old CEO, formally took over in September 2024, promising to restore the struggling brand after it emerged from Chapter 11 bankruptcy.

“Red Lobster is now a stronger, more resilient company, and today is the start of a new chapter in our history,” he said in a statement at the time. “From the opening of our first restaurant in 1968, Red Lobster has focused on serving diners high-quality seafood at affordable prices. I’ve been a Red Lobster fan since my first dining experience as a 9-year-old at our Springfield, Ill, restaurant — and as I’ve prepared to step into the role of CEO, I’ve met hundreds of diners across the country who, just like me, are as passionate about Red Lobster now as they were on their first visit.”

Now that the company has emerged from bankruptcy, industry expectations are cautiously hopeful. According to the National Restaurant Association, most operators predicted sales would remain stable or increase in 2025. Red Lobster’s focus is now on establishing an ambiance that appeals to younger consumers — those searching for more than simply food. Adamolekun cautioned, “If you don’t meet their expectations, they won’t come back.”