Flair News

TGI Fridays files for bankruptcy, all 6 Dallas locations now closed

TGI Fridays

Restaurant chain TGI Fridays filed for bankruptcy protection on November 2, saying it is looking for ways to “ensure the long-term viability” of the casual dining brand after closing many of its branches in 2024.

The Dallas-based company's Chapter 11 filing in a Texas federal court accelerates a gradual decline for an iconic chain that was once near the center of American pop culture but has seen its customer base dwindle as tastes changed.

TGI Fridays executive chairman Rohit Manocha said in a statement that the challenges were a result of COVID-19.

"The next steps announced today are difficult but necessary actions to protect the best interests of our stakeholders, including our domestic and international franchisees and our valued team members around the world," Manocha said. "The primary driver of our financial challenges resulted from COVID-19 and our capital structure. This restructuring will allow our go-forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential."

Until recently, Dallas-Fort Worth had 11 locations including five at DFW Airport. Those airport locations are the only ones still open. The remaining six are all now closed — some closures very recent, most after being in business for a decade or more: 4951 Belt Line Rd. in Addison; 311 N. Clark St. in Cedar Hill, southwest of Dallas; 3700 Towne Crossing Blvd. in Mesquite; and 220 Cornflower Dr. at Firewheel Town Center in Garland.

A Plano location at 2444 Preston Rd. closed in 2022 and is now home to Rise Souffle, while the flagship in Dallas' West End at 1713 Market St. closed in 2020 after 32 years.

Privately owned by TriArtisan Capital Advisors, TGI Fridays has been a beloved dining destination since its inaugural bar opened in Manhattan in 1965. It expanded over the following decades to become a ubiquitous suburban gathering spot known for its ribs, potato skins topped with cheese and bacon, and a decor bedecked with red stripes and Tiffany-style lamps.

The company has boasted that its bartenders trained Tom Cruise for his role in the 1988 film Cocktail, while its serving staff's button-filled uniforms, meant to evoke a fun atmosphere, were later parodied in the 1999 satire Office Space, starring Jennifer Aniston.

Its empire peaked in 2008 with 601 restaurants in the U.S. and a $2 billion business, according to Kevin Schimpf, director of industry research at Technomic. Its sales in the U.S. were $728 million in 2023, down 15% from the prior year, according to Technomic.

It now counts 163 restaurants in the U.S., down from 269 last year and 213 from a week ago. It closed 36 in January and dozens more in the past week. TGI Fridays Inc. said it only owns and operates 39 restaurants in the U.S, a fraction of the 461 TGI Fridays-branded restaurants around the world.

A separate entity, TGI Fridays Franchisor, owns the intellectual property and has franchised the brand to 56 independent owners in 41 countries. Those are independently owned and not part of the Chapter 11 process, and remain open.

A United Kingdom-based franchisee, Hostmore, also sought debt protection in September and abruptly closed locations throughout that country after a failed takeover deal to acquire TGI Fridays.

During the pandemic TGI Fridays made an effort to expand into the delivery market by making itself a hub for ghost kitchens, which have no storefront and only prepare food for delivery. Among the major creditors owed money by TGI Fridays is the delivery service DoorDash, according to Saturday's bankruptcy court filings.

Sit-down chain restaurants more broadly have faced challenges in recent years as diners choose to get food delivered or visit upscale fast-food chains like Chipotle and Shake Shack. In September a U.S. bankruptcy judge approved a reorganization plan for the seafood chain Red Lobster after years of mounting losses. Italian American food chain Buca di Beppo filed for bankruptcy protection in August. PAnother iconic U.S. sit-down restaurant, Denny's, announced in October that it is closing 150 of its lowest-performing restaurants in an effort to turn around the brand’s flagging sales. Wendy’s is also closing up to 140 restaurants, according to a statement from The Wendy's Co. on October 31.
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Teresa Gubbins contributed to this story.

Closure News

The original Dick's Last Resort in Dallas closes after 40 years

Dick's Last Resort

A venerable destination in the downtown Dallas area has closed: Dick's Last Resort, the notoriously saucy restaurant and bar at 2211 Lamar St., has closed permanently, after 40 years.

According to a representative from the Nashville-based chain, the final day for the Dallas location was November 30.

"Business at that location had been declining, and they were facing an increase in rent, so they made a decision to close," the representative said.

Dick's Last Resort was founded right here in Dallas in 1985 as a winking, impudent good-time spot with good bar food and cold beer, at a time when leg warmers and mullets were the rage.

The concept was hatched by bon vivant "Buffalo George" Toomer and Richard "Dick" Chase, centered on a saga about a bad boy named Dick whose big-league plans had failed and who pivoted to open a laid-back bar full of attitude and dick jokes. The restaurant featured gruff staffers and a Southern-style menu in a rowdy roadhouse environment.

It became a huge success, with customers coming eagerly to be insulted, get pelted with napkins and straws, and wear paper hats with crude comments and insults written in a sharpie such as "I've nailed more wood than HGTV." That atmosphere made it a popular destination for bachelorette parties and other group events, and it was a big tourist draw at its then-location in the West End. (It relocated to its current location close to American Airlines Center in 2005.)

Although the food took a backseat to the atmosphere, the menu — written on the wall — featured ribs, chicken, wings, and burgers, served casually in paper and buckets. In its heyday and for many years, it remained lodged on the TABC Top 10 list for beer sales in Dallas.

Chase was ousted for embezzling by the financial backers, who went on to grow the concept into a national chain, with locations in Boston, Chicago, and London. Those are now closed, but there are currently a dozen Dick's across the southeast in Florida, South Carolina, Tennessee, as well as Las Vegas and a longtime location in San Antonio on the Riverwalk.

Dallas restaurateur Mike McRae, who currently owns restaurants such as Dodie's Cajun Diner in Rockwall, Stan's Blue Note, and McRae's Bistro in East Dallas, worked for Dick's for 23 years and owned the Dallas location for 12 years.

"I was hired as their general manager 18 months after it opened," McRae says. "Richard Chase was kind of a hothead. He would fire people on the drop of a pin. We had a pink plastic flamingo with a light inside behind the bar, and he was adamant that the light be on all the time. He once fired a GM because the light was off."

Dick's was owned by Steven Schiff, a Dallas entrepreneur who was in real estate and oil, but had no experience in the restaurant industry.

"Steve talked to Norman Brinker and said, 'I've got this place but I don't want to be in the restaurant business — how do I sell this?'" McRae says. "Norman said, 'You need to open two more locations in different cities.' So we opened the location in San Antonio and a third in downtown Chicago. Both were wildly successful — way more than Dallas. These places were netting over $1 million in yearly profits, which was a lot of money back then. We opened one in London, Boston, San Diego, Myrtle Beach, they were in major cities all over the U.S."

McRae eventually became director of operations and they kept it running until 2009 when they sold the company to its current ownership group based in Nashville. McRae bought the Dallas location in 2010, later joined by his partner Gabe Nicolella; they owned it for 12 years before selling it back to the corporate owners in 2021.

"We did some crazy things in those days, like creating a fake restroom with a pair of tennis shoes visible and a tape recording of farting sounds," McRae says. "We only hired people who had been class clowns, who couldn't get jobs anywhere else. We served food in buckets and the placemats were torn-off butcher paper — things you couldn't get away with now."

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