Dive Brief:
- TGI Fridays has signed its first new franchise agreement in the U.S. in over a decade, according to a Tuesday press release.
- Bliss Bites LLC is acquiring a single TGI Fridays location in central Islip, New York, and will build five new restaurants across the Empire State in the next three years.
- The agreement could help TGI Fridays return to unit growth in its home market, where it suffered a disastrous few years. Since the start of the decade, about 80% of Fridays’ U.S. store system closed — as of early September, it was down to just 71 locations, according to its franchise disclosure document.
Dive Insight:
Since Ray Blanchette’s Sugarloaf Capital bought the chain out of bankruptcy and Blanchette returned as CEO, Fridays has developed significant and ambitious plans to grow its sales and store base. The chain, which has about 400 units worldwide, is targeting 1,000 locations and $2 billion in revenue by 2030.
Reaching that ambitious target will depend substantially on Fridays’ ability to attract capable franchisees and strengthen its unit economics.
“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,’” said Ashley Kirkley, the chain’s chief operating officer.
Bliss Bites is owned by Vinod Chand, who has over 35 years of hospitality experience, Fridays said.
Resuming major U.S. growth may take a considerable time, given the expense and difficulty of developing new locations or converting second-generation space to modern casual dining footprints. A few weeks ago, Fridays added a value offer — the $11.99 3 For All — in hopes of capitalizing on consumer shifts into casual dining driven by ongoing fast food price inflation.
