The casual-dining chain TGI Fridays has returned to the U.S. development scene following a lengthy break, and its first agreement in more than a decade has been sealed. A franchisee named Bliss Bites LLC will assume control of one of the two remaining Fridays locations on Long Island, with further plans to launch five more restaurants throughout New York State.
This agreement is the third development deal Fridays has announced within the last month. The company has also secured its first stores in the Balkans region and reached a deal to grow across Pakistan. It’s all part of the chain’s part of the turnaround strategy outlined by CEO Ray Blanchette back in January.
The Deal’s Numbers
TGI Fridays operates nearly 400 restaurants in almost 40 countries, though fewer than one-quarter of those are in the United States. At its peak, Fridays operated more than 600 restaurants in the U.S. and is now down to 69 domestic locations.
This chain began its run in New York City, where the casual-dining brand first appeared as a singles bar on the Upper East Side in 1965. It is now moving forward with a fresh push into the U.S. market, two years after coming out of bankruptcy.
TGI Fridays has grown its portfolio by more than 150 locations since January, with expansion efforts centered on international franchise deals in several countries, including:
- Kenya and the Maldives
- Peru
- Japan
- Mexico
- The Philippines
- Greece
- Cyprus
- Spain
What the COO Said
Ashley Kirkley, COO of TGI Fridays, tied the New York deal directly to the company’s broader turnaround goals. “Growth only matters when it’s built with the right partners, and this five-restaurant development agreement is exactly what we envisioned for our ‘1-2-3 Strategic Vision,'” she said in a statement.
Kirkley also pointed to changing consumer habits. “Guests are increasingly looking for casual dining that delivers real value without sacrificing experience, and Fridays is well positioned to meet that demand as we grow,” she said. “New York is an important part of our domestic growth story.”
A Long Pause Ends
Fridays has finally sealed a U.S. development deal after a long spell without one. The company is counting on New York to jumpstart its home market expansion again, having emerged from bankruptcy two years ago.
Since January, the company’s strategy has included an international push, and it has added more than 150 restaurants, with most of the growth coming from international franchise deals.
The New York arrangement returns the attention to the original base. By securing one of the last two Long Island sites still left and adding five more locations throughout the state, Fridays has re-established a presence in the region where it first began.
The Road Ahead
The January plan from Blanchette aimed at reaching $2 billion in yearly sales with 1,000 restaurants operating by 2030. The latest round of acquisitions brings the firm nearer to that goal, even if the home market growth stays small.
The chain’s American footprint stands at 69, and Fridays remains well short of its former high point of over 600 outlets. Years of recovery followed a downturn, and the push into other countries signals where the brand is heading.
After emerging from bankruptcy two years ago, the company is restarting its domestic growth story in the state where it began. The New York deal serves as a signal that the company is willing to commit to the U.S. again.
What This Means for the Brand
New York is once again home to a significant Fridays presence, which the company has not enjoyed for some time. That gives the brand a base from which to build out its American push, a location where the chain first began its operations.
While the U.S. recovery continues to unfold, the company is placing its bets on international growth. The agreements with the Balkans and Pakistan extend Fridays’ presence into fresh markets.
Several transactions have come together within a brief span, and that alone is worth noting. The arrangement in New York stands out as proof that the firm has finally decided to make a real push into the United States.
Fridays has at last found the right partner to advance after a long pause, and the New York deal marks a small step in the correct direction.
Source material: “TGI Fridays signs first U.S. development agreement in 10 years,” Nation's Restaurant News.
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