TGI Fridays, the casual dining chain known for its appetizers and signature drinks, is facing a unique challenge as it navigates financial troubles, Out Kick reports.
The company, which recently filed for bankruptcy, has revealed a significant financial concern: nearly $50 million worth of unused gift cards.
According to reports, TGI Fridays has approximately $49.7 million in non-expiring gift cards in circulation, some of which date back as far as 2003. The company’s concern is that if these gift cards were all redeemed at once, it could put significant strain on their already struggling financial situation.
The news comes at a difficult time for the chain, which has been experiencing declining customer visits, particularly in locations outside of high-traffic areas such as airports and hotel districts. The company’s bankruptcy filing, which was submitted last week, is part of an effort to restructure and remain afloat. While other restaurant chains, like Red Lobster, have filed for bankruptcy in recent years to improve their financial standing, TGI Fridays’ large number of unused gift cards adds an unusual complication to their recovery efforts.
Experts note that unused gift cards are a common liability for many businesses, but in TGI Fridays’ case, the sheer volume of outstanding gift card balances presents a particularly tricky situation. For many consumers, gift cards to TGI Fridays remain an afterthought—tokens of a time when they dined out more frequently or received them as gifts.
Despite the issue, the company has not yet indicated how it plans to address the unused gift card balances or how the situation might impact its restructuring efforts. For now, customers with TGI Fridays gift cards may want to consider redeeming them sooner rather than later—while not every customer will suddenly cash in, the company’s financial health could be at risk if a substantial number of them do.
