Around 50% of restaurants do not survive beyond the initial three years of operation. Surprisingly, it is not the large chain establishments with numerous global branches that face this challenge, but rather the locally owned and operated restaurants.
Nonetheless, an exception to this trend is an establishment that has managed to thrive for almost six decades. However, this long-standing restaurant is now on the verge of undergoing significant transformations.
More Wisconsin Restaurants Are Struggling And Could Close
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Here are eight other Wisconsin restaurants that may be on the verge of closing soon.
TGI Fridays Selling All Its Corporate Locations
The ongoing coronavirus pandemic has caused a significant shift in the daily lives and routines of people across America. With the constant threat of the virus, there has been a climate of anxiety and uncertainty that has permeated society. People are adapting to new norms and adjusting their routines in order to stay safe and minimize the risk of infection.
According to RestaurantDive, the combined company will oversee a total of 189 corporate-owned restaurants in the United States and the United Kingdom. Additionally, the company has around 400 franchised stores spread across 44 countries.
Now, the group has changed its plans and intends to sell its owned-and-operated restaurants to franchise operators. TGI Fridays currently operates 92 corporate-owned locations, while Hostmore has 87.
Hostmore and TGI Fridays have recently announced their plans to divest their corporately owned stores. TGI Fridays will be selling their 92 corporate stores, while Hostmore will be selling their 87 corporate stores. The intention is to transfer ownership to existing or new franchisees, who will then take over the operations of these stores and pay franchise fees.
As a Wisconsin diner, you may not immediately notice any significant changes. Franchise establishments are still required to adhere strictly to the corporate guidelines. However, if an unsuitable owner assumes control, you might experience more noticeable differences.
If you’re an investor, you might want to consider checking out your local TGI Fridays. There’s a possibility that it’s up for sale. However, it’s worth noting that if a group of millionaires isn’t interested in acquiring more of these restaurants, perhaps you shouldn’t be either.
Source: WROK