Not Only Friday's, the Other Major Fast Food Chain Closes Many Locations

The United States is preparing for a 2025 of changes. Two of the most popular restaurant chains in the United States have confirmed the closure of a large number of locations. Denny's and TGI Fridays, both with decades of history in the industry, have decided to reduce their market presence.

Economic difficulties, rising costs and changing consumer habits have led these companies to take drastic measures. The impact of these decisions will be significant in several cities where customers will lose traditional casual dining options.

Denny's Will Close 150 Restaurants Before 2025

Denny's has announced that it will close 150 of its locations in the United States. The measure aims to improve cash flow and optimize the restaurant portfolio.

The closures will take place in two phases. In the first stage, 50 restaurants will cease operations by the end of 2024. Then, in 2025, another 100 locations will permanently close their doors.

According to Stephen Dunn, the company's executive vice president, the decision has a clear reason. Many of these restaurants are old or in unprofitable locations. Some have been operating for decades and no longer generate the necessary profits for their maintenance.

Denny's has faced difficulties in recent years. Its sales have decreased for five consecutive quarters. Inflation has affected food prices and changed customer behavior. In this context, the company has chosen to focus on the most profitable locations and improve the consumer experience.

TGI Fridays Also Reduces Its Presence in the United States

The situation for TGI Fridays is even more complicated. The chain has gone through serious financial problems, which led it to file for bankruptcy protection at the end of 2024.

Since then, TGI Fridays has closed approximately 130 locations in the United States. In January 2025, it announced the closure of its last four locations in Las Vegas, all located within casinos.

The company has lost much of its presence in the country. In 2008, it had more than 600 restaurants, but that number has drastically decreased. The change in customer preferences has been key in this crisis. Many consumers have opted for new dining options, leaving behind the casual dining chains that once dominated the market.

A Market in Transformation

The difficulties of Denny's and TGI Fridays reflect a broader trend in the industry. Many chains have had to close locations or adapt to new strategies to remain competitive.

Inflation and rising costs have affected restaurants of all kinds. Additionally, consumers are increasingly seeking innovative dining experiences, moving away from the traditional formats of diners and themed restaurants.

While some chains are betting on reducing their size, others are looking to reinvent themselves. The digitization of orders, the incorporation of more modern menus and the improvement in the quality of ingredients are some of the strategies used to attract new customers.

Despite the closures, both Denny's and TGI Fridays continue to operate in several cities. However, their future will depend on how well they manage to adapt to new market trends.