Red Lobster and TGI Fridays Are Closing Stores – What’s Really Happening?
Two well-known restaurant chains in the U.S.—Red Lobster and TGI Fridays—are closing many of their locations. These changes have made many people wonder: Why is this happening, and what will happen next?
This article explains the reasons behind the closures, how many stores are closing, and what each company is doing now.
Why Are These Restaurants Closing?
Both Red Lobster and TGI Fridays are facing financial problems. Here are the main reasons:
Common Reasons:
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High costs – Rent, food, and wages are more expensive now.
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Less dine-in customers – More people prefer delivery or fast food.
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Debt – Both companies owe a lot of money to investors.
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COVID-19 effects – The pandemic changed how people eat out.
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Inflation – Prices are rising for everything.
How Many Stores Are Closing?
Here is a table showing how many restaurants are closing and how many are left open in the U.S.:
| Restaurant | Locations Closing | Locations Still Open |
|---|---|---|
| Red Lobster | Around 100 | Around 500 |
| TGI Fridays | Around 130 | Around 85 |
Red Lobster: What’s Going On?
Bankruptcy Filing
Red Lobster filed for Chapter 11 bankruptcy. This means they are trying to fix their money problems while still running the business.
Mistakes Made
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Too many discounts, like endless shrimp deals, cost the company too much.
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Poor business decisions by previous owners.
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Some restaurants were already losing money before bankruptcy.
Closures
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Many locations closed quickly without notice.
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Some stores were emptied and equipment was sold.
TGI Fridays: What’s Happening?
Store Closures
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TGI Fridays closed about 130 locations in 2024.
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Now, only around 85 U.S. locations are still open.
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Many were closed in big cities and casinos.
New Plans
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They want to sell more franchise stores instead of running them directly.
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The company is focusing more on international markets.
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They are changing the menu to attract younger customers.
What Both Companies Have in Common
The problems are very similar for both Red Lobster and TGI Fridays.
Comparison of Issues
| Problem | Red Lobster | TGI Fridays |
|---|---|---|
| High rent and labor costs | Yes | Yes |
| Losing customers | Yes | Yes |
| Debt problems | Yes | Yes |
| Bankruptcy filed | Yes | No |
| Updating menu and service | No | Yes |
| Closing restaurants quickly | Yes | Yes |
What’s Happening Across the Restaurant Industry?
Red Lobster and TGI Fridays are not alone. Other restaurants like Applebee’s, Hooters, and Rubio’s are also closing locations. Full-service restaurants are losing customers to:
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Fast food chains
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Online food delivery apps
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Cheaper eating options
What’s Next for Red Lobster and TGI Fridays?
Red Lobster
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Will continue closing some stores.
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Trying to find new investors or owners.
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Might change how they run their business.
TGI Fridays
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Focus will shift to global markets.
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New meals and marketing for younger people.
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More franchises, fewer company-owned stores.
Final Thoughts
Red Lobster and TGI Fridays are both going through big changes. The way people eat is changing, and these restaurant chains are trying to keep up. Even though they are closing many stores, they are not disappearing completely.
If you see one of their restaurants near you, it may stay open—but more closures could come soon.
