Inside the Plan To Revitalize TGI Fridays Amidst Its Bankruptcy Woes

TGI Fridays is amid its bankruptcy woes, but one entrepreneur thinks he still has the key to revitalizing the once-popular restaurant. It’s unclear whether the restaurant is willing to follow his plan. Let’s take a look at what we know about this latest development.

Roy Blanchette Has Plans To Revitalize TGI Fridays

According to the Wall Street Journal, Ray Blanchette, who started as a manager at TGI Fridays, plans to revitalize the business. From 2018 to 2023, when the chain’s candy-colored beverages and specials drove its bar scene, he served as the company’s CEO. Blanchette, who presently owns eight TGI Fridays restaurants, says he understands what it takes to revive the eatery.

He claims that the brand has a good wager on consumers’ desire to wind down at the end of the week with a pint of beer, good company, and hearty American fare. He has attempted to control important facets of the parent company’s finances and is attempting to acquire the bankrupt TGI Fridays.

“This isn’t rocket science. You have to sell people a good time,” Blanchette said to the outlet. “We sell experiences, not groceries.”

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TGI Fridays and other sit-down businesses have it harder than most. Instead of sliding into booths to study over laminated menus, families these days are frequently more inclined to eat fast food in their cars. Parents are cooking more at home, while teenagers use their phones to order delivery. According to research, even first dates are less likely to happen at bars and restaurants.

A Texas bankruptcy court will now decide on the restaurant’s fate, including Blanchette’s intentions to purchase several TGI Fridays locations through a bid auction this month. According to bankruptcy documents, Blanchette is offering a more comprehensive involvement in managing the company’s revenue streams and the debt they support.

The Restaurant Filed for Chapter 11 Bankruptcy Protection

Back in November, the restaurant filed for Chapter 11 bankruptcy protection in Texas.

“TGI Fridays Inc. (the ‘Company’), the owner and operator of 39 domestic restaurants in the TGI Friday’s casual dining chain, today filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the Northern District of Texas,” the press release announcement read. “The Company expects to use the time and legal protections made available through the Chapter 11 restructuring process to allow the Company to explore strategic alternatives in order to ensure the long-term viability of the brand.”

The announcement also stated that many restaurants would continue to operate through a Transition Services Agreement — which will also give franchisees funding while the corporation seeks its protections under the Chapter 11 filing — and that individual franchisees would not be impacted by the filing.

“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,” said Rohit Manocha, executive chairman of TGI Fridays Inc., in a statement accompanying the press release. “The primary driver of our financial challenges resulted from COVID-19 and our capital structure. This restructuring will allow our go-forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential.”

When it was revealed in October that over 1,000 individuals had lost their jobs due to the closure of 36 TGI Fridays restaurants in the United Kingdom, the company was already exhibiting financial difficulties.

Nation’s Restaurant News reported at the time that private equity firms Breal Capital and Calveton U.K. jointly purchased 51 of the 87 sites listed for sale by former U.K. master franchisee Hostmore PLC, sparing the casual dining business in the U.K. for now.