One of America’s most recognizable dining brands is undergoing a transformation unlike anything it’s faced before. For decades, it served as a go-to for families, friends, and bar-goers alike. Now, it’s quietly closing dozens of locations and overhauling its menu. The sudden shift has left customers asking whether the chain is evolving, or collapsing. And with 85% of its menu gone, the answer may come sooner than expected.
From 270 Locations to Just 85
Just over a year ago, this Chili’s competitor operated nearly 270 restaurants nationwide. Today, only 85 remain open. CNN reports this is the lowest number of restaurants the chain has had since the 1970s. What’s even more alarming is how fast it all happened. The brand lost more locations in one year than it opened in its entire first decade. The rapid collapse stunned employees, customers, and competitors alike, and pointed to a bigger problem.
Fridays Faces the Fire
The mystery chain is TGI Fridays, once a staple of American casual dining. Known for its laid-back bar-and-grill feel, the brand has taken drastic steps to stay afloat. In early 2025, it slashed 85% of its menu and began a sweeping overhaul of its operations. The company has openly acknowledged it’s facing serious challenges. Whether this bold reset will revive the brand or mark the end of an era remains to be seen.
The Bankruptcy That Shocked the Industry
On November 2, 2024, TGI Fridays officially filed for Chapter 11 bankruptcy in Texas. The company had only $5.9 million in borrowed cash and $37 million in debt. COVID-19 played a major role, according to Executive Chairman Rohit Manocha. But insiders say the trouble started years earlier, with poor decisions and fewer customers. Only 39 company-owned restaurants were included in the filing, while most franchise owners watched closely. The court process gave Fridays time to restructure. But it also signaled how deep the problems ran.
Big Names Are Falling Fast
TGI Fridays is just one of many big chains struggling to survive. Red Lobster filed for bankruptcy after shutting 131 locations. Hooters closed 41 restaurants, and Buca di Beppo cut 20. Altogether, nearly 350 full-service chain restaurants shut their doors in 2024, representing 1.3% of all U.S. locations. These cases reflect deeper industry problems. Rising costs, falling traffic, and tighter margins are pushing long-established brands into crisis mode. Casual dining is clearly in trouble, and the numbers continue to climb.
Rising Prices, Falling Sales
Menu prices have climbed 30% since 2019, making dining out less affordable for many families. As budgets shrink, more people are choosing cheaper options like fast food or fast-casual spots. While casual dining sales dropped nearly 1% in 2024, these quicker, lower-cost alternatives saw growth. Customers are no longer willing to pay more for the same experience they used to get for less. That shift in behavior is hitting chains like TGI Fridays hard, and it’s forcing a complete rethink.
They Deleted 85% of the Menu
In May this year, CEO Ray Blanchette returned with a massive change: 85% of the TGI Fridays menu was overhauled or cut. This wasn’t about small tweaks. Whole categories were eliminated, like sushi and pasta, which were added during the pandemic. The focus moved to simple, high-quality food like steaks, chicken, and burgers. Blanchette told CNN that anything the brand wasn’t proud of was deleted. He said the goal was to only serve items they stand behind. The move was dramatic, but leadership believed it was necessary to survive. That change started with some familiar menu favorites.
Mozzarella Sticks and Big Flavors Return
The new menu focuses on upgraded classics. Mozzarella sticks now come in three flavors: Buffalo, garlic parmesan, and whiskey glaze. Hand-breaded chicken replaced frozen tenders, and steaks are now cut in-house. Even the burgers got an upgrade. One features jalapeños, queso, and pico de gallo. Sauces are now made from scratch, and the company developed a special “TGI Sauce” for its sandwiches and fries. According to Business Insider, the new food is better across the board. But can better mozzarella sticks save the brand? That question looms as we look at what leadership has to say.
The CEO Steps Back In
Ray Blanchette isn’t just the CEO, he’s also a franchisee who owns eight locations. He led the company before, left, and came back during the bankruptcy. In interviews, he said the company had lost itself by chasing too many trends. Now, he’s trying to get back to what made Fridays great. Blanchette told Yahoo Finance it felt like drinking from a fire hose, but he’s focused on quality and pride. His goal is simple: make sure everything on the menu is worth serving. That’s the plan, but not everyone is convinced it will work.
Can Deleting the Menu Really Save It?
Some restaurant experts aren’t buying the comeback. Consultant Maeve Webster told CNN that people may like mozzarella sticks, but the menu change doesn’t fix deeper problems. Others say TGI Fridays lost its personality years ago, becoming just another chain. John A. Gordon, a restaurant analyst, said the brand was mismanaged for too long, especially under the Carlson Hotel Group. The restaurant’s average unit sales are now below $3 million, which puts it in a danger zone. These are serious concerns. While management pushes ahead, critics are asking if it’s too late to fix what’s broken.
Why Chili’s Is Winning Instead
While Fridays struggles, Chili’s is growing. Chili’s focused on fewer menu items, strong value, and smart marketing. Same-store sales rose 31%, and customer traffic jumped nearly 20%. Industry analysts have noted that Chili’s kept things simple and focused on core strengths, while Fridays tried to follow multiple trends. Restaurant Business reports that Chili’s scaled back its menu years ago, which helped it thrive. TGI Fridays, in contrast, is now cutting too much, too fast. The two brands started with similar ideas, but one leaned into its strengths and the other lost direction. The difference is clear, and painful to watch.
A New Franchisee-Led Strategy
Under Ray Blanchette’s leadership, TGI Fridays is now fully franchised. During bankruptcy, the company sold off 27 company-owned restaurants. Blanchette created a new advisory board that includes six international franchisees, two domestic ones, and himself. He told Restaurant Dive that everyone involved has their own money on the line, so the decisions are personal. According to FSR Magazine, this new structure means more focus on the customer and day-to-day survival. The people calling the shots now are the ones running the restaurants. This local ownership could help, but the money problems haven’t gone away.
The Money Crunch Is Real
Chapter 11 lets TGI Fridays keep running while it works out its debts. The company got $5.9 million in emergency financing but owes $37 million. On top of that, they have $49.7 million in outstanding gift card liabilities. Franchise owners are worried they’ll be left covering those cards with no help. If the restructuring fails, the fallout could be worse. According to Reuters, Judge Stacey Jernigan is allowing the business to keep operating while buyers are sought. But with so little cash left, every decision counts. There’s little room for mistakes now.
Customers Aren’t Sold Yet
The reaction to the new menu has been mixed. Some longtime fans like the return of old favorites and better ingredients. But younger customers don’t seem interested. Many don’t see casual dining as cool or relevant anymore. Business Insider’s review said the mozzarella sticks were great but asked if that’s enough. Industry expert Darren Tristano told AdWeek that younger customers don’t want to eat where their parents did. The chain has tried to appeal to Gen Z with trendy flavors and flashy cocktails, but many think it feels forced. Fridays needs more than nostalgia to win them back.
A Different Story Overseas
Outside the U.S., TGI Fridays is doing a little better. About 400 restaurants are still open worldwide. In the UK, private equity firms saved 51 restaurants but closed 35 others, cutting 1,000 jobs. The Independent reports that the brand is trying a full reset. They’re updating the menu, bringing back photo booths, and adding fun touches like candyfloss machines. CEO Julie McEwan says the goal is to revive the “Americana” vibe. While U.S. locations are vanishing, other countries are giving Fridays a second chance. Whether that works depends on how much people still care about the brand.
Sales Down 63% Over 15 Years
TGI Fridays’ struggles didn’t begin overnight. Sales have been declining steadily for over a decade. Between 2008 and 2023, total U.S. revenue dropped by 63%. The company attempted a merger to reverse course, but the deal failed. Attempts to rebrand and modernize met mixed reviews. Combined with inflation and shifting dining habits, these setbacks have put immense strain on the chain’s ability to maintain profitability.
Fridays Is Changing More Than Just Food
CEO Ray Blanchette isn’t just focused on food, he’s eyeing the full experience. From staff training to kitchen workflow, the entire system is being refined. The company is even exploring new tech integrations for ordering and reservations. These moves are designed to rebuild trust and boost convenience. But real success will come only if customers notice, and appreciate, the changes. Fridays knows it needs to prove that it’s not just cutting corners, but improving the core.
Can This Turn Things Around?
Ray Blanchette says he hopes to exit bankruptcy by summer 2025 and start opening new restaurants by 2026. The revamped cocktail menu is a big part of the plan. Drinks like Jack’s New Fashioned and Turbo Toro are meant to bring back the fun bar vibe that once made Fridays special. According to FSR Magazine, Blanchette wants the chain to be a place people celebrate again. But with only 85 locations left and a mountain of debt, there’s not much time. The next year will determine whether this is a comeback or a last gasp.
What Happens Now?
TGI Fridays’ fall from a $2 billion empire to just 85 locations is one of the biggest restaurant collapses in U.S. history. The chain deleted 85% of its menu, slashed costs, and entered bankruptcy to survive. But it’s still unclear whether that will be enough. T
he casual dining world is changing fast, and not every brand will make it. Fridays is trying to bring back old magic, but customers might already be gone. Would you give the new menu a shot, or are you already sticking with Chili’s? Let us know where you think casual dining is headed next.