TGI Fridays is closing 36 corporate-owned locations in 12 states and selling eight restaurants in the Northeast to the chain's former CEO Ray Blanchette as the company focuses on streamlining.
The moves come shortly after the company announced major changes to its leadership team. The restaurant chain elevated Weldon Spangler, a longtime TGI Fridays board member, to CEO at the end of October as it carries out a growth plan to revitalize the iconic brand globally.
Last month, TGI Fridays hired Ray Risley as chief operating officer and U.S. president and Nik Rupp as president, chief financial officer and COO internationally. Rupp most recently held the role of COO at Papa Murphy's International, while Risley most recently served as CEO of Via 313 Pizzeria.
Employees at the 36 underperforming restaurants being shut down will be given the opportunity to transfer to other locations, according to a statement. As many as 80% of employees affected by the closings are eligible for a transfer, according to TGI Fridays.
TGI Fridays first opened in Manhattan in 1965 and now has more than 650 restaurants in 51 countries. The chain is privately owned by TriArtisan Capital, a New York-based private equity firm.
Blanchette, who will be taking over the eight TGI Fridays in the Northeast that were previously corporate-owned, served as the company’s CEO for five years through May 2023. Terms of the restaurant deals were not disclosed.
A majority of the restaurants shutting down are in Massachusetts, New Jersey and New York, according to a TGI Fridays spokesperson.