TGI Fridays’ relaunch falters amidst casual dining slump

Falling footfall, rising costs, and a delayed revamp hurt the brand.

TGI Fridays’ mid-2025 relaunch, featuring menu updates and a refreshed concept, struggled to gain traction as the casual dining sector faced declining foot traffic, rising costs, and stiff competition, analysts said.

The US-based restaurant chain, which filed for bankruptcy in 2024, has become less appealing compared to new trendy concepts despite the brand’s heritage, Maria Vanifatova, CEO at market research firm Meaningful Vision Ltd., told QSR Media.

Introducing a breakfast menu and adopting a leaner business model failed to resonate, partly due to the high-cost environment and a struggling market.

“Restaurants in the UK have been flat in revenue, but in consumer traffic, it was negative 6%,” she said via Zoom. “Taking into consideration the overall market situation, it was a double challenge for them.”

Nichola Gallagher, a senior analyst at IGD Services Ltd., said the brand faced post-pandemic challenges common to casual dining, including rising costs and subdued consumer spending.

“The strategy to reposition restaurants as experiential party venues or family destinations was sound in principle, but the brand had already suffered significant erosion,” she said in an emailed reply to questions.

“Customers were visiting dated sites where prices had increased, yet the quality of food, service, and ambience no longer justified the spending,” she added.

Compounding the issue, the brand had been put on the market three times in three years, delaying meaningful transformation. “With costs continuing to rise, consumers expect clear value for their money.”

IGD forecasts a 3.1% year-on-year decline in sales for the full-service restaurant sector, despite average menu price inflation of about 5%. Gallagher said this would likely drive closures among both independent operators and bigger chains.

“The recent [national] budget offers little relief, with higher national living wages and increased business rates adding further strain to already challenged operators,” she said, referring to Chancellor Rachel Reeves’ November announcement.

Under the plan, the national living wage will rise to £12.71 an hour starting April 2026, with those aged 18–20 increasing to £10.85. Higher business rates will also push up bills for many venues, even though retail, hospitality and leisure relief remains capped at 40% in 2025 to 2026, before moving to new multipliers in 2026 to 2027.