Neither McDonald's nor Burger King: the beloved American brand that is closing its doors

TGI Friday's, one of the most recognized fast-food chains in the United States, has announced that it is filing for Chapter 11 bankruptcy. After several decades of being a direct competitor against giants like McDonald's and Burger King, the company failed to overcome the effects of the COVID-19 pandemic. Despite its presence in 56 countries, the chain has faced significant challenges in recent years.

TGI Friday's crisis after the pandemic

The decision to file for bankruptcy is the result of years of declining sales and a shift in consumer habits, especially after the outbreak of the pandemic. According to Rohit Manocha, CEO of TGI Friday's, the impact of the health crisis not only affected sales but also complicated the sustainability of its locations. In this context, the restaurant chain turned to Chapter 11 to reorganize its debts and seek a way out that would allow it to continue operating.

TGI Friday's business model, which was based on large restaurants with varied menus and a bar atmosphere, was one of the most affected by health restrictions. The decrease in demand for dining out and the shift toward delivery and take-out harmed the company.

The closure of locations and the company's restructuring

As part of its reorganization strategy, TGI Friday's has confirmed that it will permanently close 50 of its locations in the United States and Colombia. This measure aims to reduce operating costs and stabilize the company in the long term. Despite this blow, the chain will continue to operate 113 establishments in the United States, which will continue to function normally, according to the latest reports.

The brand's future is also in doubt in some international markets, such as Argentina, where it still keeps a presence. Although it has not been confirmed whether it will continue operating in these countries, the restructurings could affect its presence in various regions.

TGI Friday's is at a crossroads. Although the chain remains a recognized brand, competition in the fast-food sector has intensified, and consumer preferences have changed. To overcome this crisis, the company will need to adapt to new business forms and rethink its value proposition.

Uncertainty in the fast-food industry

The case of TGI Friday's reflects a broader trend in the fast-food industry. The pandemic has forced many brands to rethink their strategies, with some market players adopting new business models, such as focusing on delivery and digitalization. As more traditional chains struggle to adapt, other brands, more agile and digitally focused, are gaining ground.

While TGI Friday's struggles to find its way, the industry continues to evolve rapidly. The brand's future will depend on its ability to reinvent itself and adapt to a market that increasingly demands more flexibility and convenient options for consumers.