Consumer
Casual Restaurant Bankruptcies Accelerate as Customers Retreat
- Restaurants filing for bankruptcy at fastest pace since 2020
- Advertising, value promotions expected to help sales next year
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When TGI Friday’s Inc. filed for bankruptcy last month, the casual dining chain blamed declining sales and shrinking revenue as strained customers pulled back from spending.
The nearly 60-year-old eatery is one of more than a dozen large restaurants or franchisees to seek court protection from creditors from January through October, according to BankruptcyData. That’s the most through that date since 2020. Next year could see more strife as restaurant prices have surged thanks to rising labor costs, supply chain disruptions and higher interest expenses, weighing on consumer demand for dining out.