Casual dining fans received an unexpected piece of news from Red Lobster and TGI Fridays. Just recently, it has announced several restaurant locations that it will be closing. The restaurant world continues to experience another chain of closures, but with that comes many questions regarding why they are closing and what is the future for these household names. If you are a loyal patron to one of these brands, here are some facts about the closures and what they're doing about the changing dining landscape.
Why Is Red Lob Sticky Closing Locations?
Within weeks, the country's two largest casual dining chains were dealt another blow - Red Lobster and TGI Fridays. For those not grappling with pandemic-driven decimation in foot traffic aside from runaway operational cost inflation, shifting consumer preferences, and a rise in delivery-centric restaurants, a feat of holding on to some of the units profitably became next to impossible. Both are part of that effort to evaluate and reposition themselves.
Besides shutting other casual dining chain restaurants for good, the parent companies are not yet anywhere near getting out of casual dining. The businesses are investing the same money offering delivering services as the two pivot toward the more flexible format.
Top 7 Red Lobson and TGI Fridays Locations Closing**
Here are the 7 most iconic Red Lobster and TGI Fridays that will close up shop, putting an end to a long-time staple for many regulars.
Red Lobster Locations Closing
- Times Square, New York City
- Red Lobster Sign in the most famous place in New York City, Times Square, will close down because its operating cost is too high, and tourist visitors to the city have taken a huge decline following the lockdown. This was the favorite among the fans but couldn't survive amidst the very competitive NYC market.
- Fisherman's Wharf, San Francisco
-A huge tourist bust, Red Lobster on Fisherman's Wharf in San Francisco is shuttering. Okay, it was a meat market for tourists that wanted to have a seafood experience. Still the idea just isn't workable at current prices as visitations are falling and thus it doesn't make a good location for restaurant company.
- Magnificent Mile, Chicago
- This Red Lobster was on the famous Magnificent Mile in Chicago. It was a place that had been in the community for decades, but it became a casualty of the delivery-based dining boom and the changing tastes of customers that witnessed fewer footfalls across its doorstep.
TGI Fridays Closures
- Hollywood Boulevard, Los Angeles
- One of the newest closings is this TGI Fridays, located on the famous Hollywood Boulevard. Although this location sits in a high-traffic tourist area, rent has increased, and competition from newer, trendier restaurants in the area is getting stiff.
- South Beach, Miami
- Closing will be South Beach TGI Fridays, another local favorite for locals and tourists alike. The South Beach area has become far too saturated with high-end dining and trendy locations to keep the classic chain competitive in demand.
- Uptown, Dallas
-TGI Fridays had been around in the uptown Dallas location for a long time; however, with the current trend of preferences towards delivery services and local boutiques, the company closed this location to make way for easy operations.
- Faneuil Hall, Boston
- Located in old Faneuil Hall Marketplace within Boston, the TGI Fridays will shut because the consumer behavior has changed, and foot traffic has decreased so drastically, thereby preventing many of these chain restaurants around here from really flourishing and staying afloat.
What's Behind Such Closures?
-Increasing Operating Costs: Since the rent, food, and labor prices are increasing, therefore a few places cannot maintain their profitability.
- Evolution of Consumer Behavior: The consumers are preferring healthier options, as well as more delivery and take-out services. Therefore, the sit-down restaurants cannot generate the same results that they achieved before.
- Post- Covid Adjustments: Restaurants focus on delivery services and other newer formats because more people are choosing not to eat out. The cost of operating a large dining area was simply not feasible in some locations.
Consumers choose dining based on variety or niched experiences, and therefore chains like Red Lobster and TGI Fridays have it tougher in competing with such consumers since more of the fast-casual offerings are being done and more choices in locally-owned restaurants.
Both companies do not leave the casual dining market. Even though this blowout seems to be impressive, it is far from being since the two still move on by both Red Lobster and TGI Fridays keeping inventing, even as changes continue to prevail on demands.
- Red Lobster's efforts on delivery and takeout have been overemphasized through offering more menu options for takeout. Sustainability is also targeted through this restaurant chain, through giving consumers more locally sourced options and eco-friendly food choices.
- TGI Fridays Move Toward Flexible Formats: TGI Fridays is pushing new formats, including smaller, more efficient locations that lend themselves well to takeout and delivery, and upgrading their mobile app and online ordering capabilities to make it easier to consume at home.
Both are positioning themselves for a convenience-, health-, and technology-oriented marketplace.
What You Should Do If Your Local Red Lobster or TGI Fridays is Closing
If you happen to be a die-hard fan of any of the restaurants listed above, then don't freak out-there are plenty of other restaurants from the same brand name that would still be operational. Here is how you can keep up with your favorite brands:
Visit Other Locations: Red Lobster and TGI Fridays have so many restaurants still open all across the country. Check your closest locations.
Take advantage of delivery: Both brands are investing in delivery services. You can still enjoy their menus from home.
- Be in the Know Keep: tabs of official publicized announcements for each company since the two would necessarily expand elsewhere and may create various promotions that'll bring clients in to shop there.
Conclusion
This is bitter medicine to fans of the people at 7, but by losing Red Lobster to move out, one lost TGI Fridays when moved out and together form the big picture about eating out. Chained restaurants need to adapt to this new reality by changing consumer behavior. Some of those doors are set to close for some of those brands. There's Red Lobster, TGI Fridays just to name two, but that is part of an important step by the brand to keep pace with their customer in this more digital, delivery-centric world.
But for fans, no need to panic. Many of your favorite menu items will be available at other locations, and both brands are working hard to ensure their long-term success in a changing market.