TGI Friday’s Inc. has recently declared bankruptcy due to a decline in sales and revenue as customers reduce their spending. This is part of a larger trend in the casual dining sector, with numerous restaurants and franchisees seeking court protection from creditors this year.
The restaurant industry is facing various challenges, including rising labor costs, disruptions in the supply chain, and increased interest expenses, which are causing prices to rise. As a result, consumer demand for dining out is expected to decrease in the coming year, raising concerns about the future of casual dining establishments.