Iconic Casual Dining Chain Once In Louisiana Files For Bankruptcy

KHLA-FM - Another iconic restaurant chain once in Louisiana is filing for bankruptcy. We have all the details.

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The past few years have been difficult for the restaurant business. Numerous locations that people once frequented for family dinners, birthday celebrations, or after-school activities have had difficulty remaining open.

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All of this began in 2020 when the Covid-19 epidemic struck. Many people chose to stay home rather than eat out since restaurants were obliged to close their dining rooms.

Restaurants struggled to recover even after the epidemic slowed down due to new issues. Inflation increased the price of food, commodities, and labor wages. Businesses found it more costly to borrow money at the same time that interest rates on loans rose. Additionally, people's perceptions of eating out have evolved. While some choose to cook more frequently in order to save money, others prefer to order food to be delivered to their homes.

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These challenges have hurt casual dining chains across the country. In just the past year, several well-known restaurants have filed for bankruptcy and closed many of their locations. Some plan to shut down even more restaurants this year.

One of the most recent examples is TGI Friday’s, a famous restaurant chain known for its fun atmosphere and American-style food. TGI Friday’s filed for Chapter 11 bankruptcy protection. This move allows the company to sell off some of its assets, close certain restaurants, and get out of leases and contracts that are too expensive to keep.

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Before filing for bankruptcy, TGI Friday’s had about 600 franchises worldwide, including 213 locations in the United States. Now, the company is working on a plan to shrink the number of restaurants it operates in hopes of becoming stronger in the future.

TGI Friday’s is not alone in this struggle. Many other dining chains have been forced to close restaurants or file for bankruptcy in the past year. It’s a tough time for casual dining spots, but some are trying to find new ways to survive by adjusting their menus, focusing on takeout and delivery, or changing their business models.

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For many people, restaurants like TGI Friday’s hold special memories. While some locations may close, fans of the chain are hopeful that the company will be able to bounce back and continue serving up its famous burgers, ribs, and appetizers for years to come.