NEWSLETTER
It seems that many restaurant brands have a moment, but they cannot evolve to remain relevant.
The chains that were once very popular, such as the ground, Chi-Chis, Friendly's, Howard Johnson, and many others have a place in people's hearts, but the nostalgic fans are not equal to the current success.
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All these chains have gone or decreased to much smaller amounts of locations than those they had at the peak.
In fact, although certain huge fast food chains, including McDonald's, Burger King, Taco Bell and Wendy's, seem durable, most restaurant chains seem to have a useful life unless they reinvent themselves. Howard Johnson, for example, was where you stopped on a long road trip for decades.
There were other options, such as Denny's and The Big Boy Chain, but that of Hojo, as it was known, was something omnipresent until it was not. Restaurants' concepts cannot really be property.
If a company has a good idea for a place to eat, that guarantees competition. Think about how many chains the Chipotle brand line have copied and tried to take that concept to other types of food.
It has worked in certain cases and has not diluted interest in the original brand, but the story shows that over time, it is very difficult for restaurant chains to remain popular and relevant.
Image and colon source; Shuttersock
TGI Fridys was a restaurant pioneer
TGI Fridys was a quick and casual space leader. Instead of being a family restaurant like Friendly's or Ground Round, TGI Fridys was strongly built around his bar.
It is not exactly a sports bar, but lends a lot of that concept. That was a fairly novel idea in 1965 when the chain opened its doors in New York.
The company is still proud of its inheritance.
“Since the bar and the original informal food grill, TGI Fridys offers authentic American legendary foods and drinks, served with a genuine personal service. Uniting people to socialize and celebrate the liberating and liberating spirit of 'Friday' was the founding premise of the concept, of which the brand promised 'here, it has always been born on Friday,' he shared the chain on his website.
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The problem is that TGI Fridys showed that there was a demand for a family restaurant built around a bar and an atmosphere of good weather. That raided the way for dozens, perhaps hundreds, of competitors.
TGI Fridys lost its way somewhere in the 2000s, when its food quality slipped and rivals such as Chili's, Ruby Tuesday and even Applebees led some of their audience.
The innovative chain becomes smaller
After a series of reinvention plans failed (unlimited snacks are the most notable), TGI Fridays declared in bankruptcy of chapter 11 in November. The chain is expected to survive, but it has plans to close or has already closed around 130 restaurants.
The court that presents only affects the American restaurants of the chain.
“The TGI fridays franchisor, LLC has franchised the brand 56 franchisees in 41 countries. All these franchise locations, both national and international, are independent property and, therefore, are not included in the process of chapter 11 of TGI Friday Inc.
US operations, however, are very affected. The chain has organized financing to operate the stores that it keeps open and to pay to close those that are not profitable.
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“The company has ensured a commitment to financing the debtor in possession to support operations while continuing through the process of Chapter 11. It also presented motions to the Banking Court that, when approved, it will allow the company, among other things, to continue its client programs in the normal course,” he shared.
In most cases, the restaurants that close are locations where the lease of the chain causes profitable operations impossible. The company has not fully decided which locations will close and some closures depend on judicial decisions.
