<\/p>\n
In the 1970s and 1980s, ice cream counters were a key part of family dining. That grew from the days when neighborhood pharmacies offered diner-style menus complete with a full ice cream counter.<\/p>\n
This evolved into chains which offered breakfast and lunch menus built around classics like burgers, club sandwiches, and crispy french fries.<\/p>\n
In my childhood, my small town of Swampscott, Mass. actually had two restaurants in this genre. Our small mall had a Brigham’s, while the strip mall across the street had a Friendly’s.<\/p>\n
Theyent were nearly identical, with the exception that Friendly’s was a little more clever with its menu offering the “Fishamijig,” a fried fish sandwich, the Fribble, a variation on a milkshake, and the perhaps not-well-named, Happy Ending Sundaes.<\/p>\n
Both Friendly’s and Brigham’s were affordable family eateries, but only Friendly’s grew into a national restaurant brand. The chain grew to over 850 locations at its peak, but has been in steady decline and now has only 87 locations, according to Franchise Times. <\/p>\n
Friendly’s survived a Chapter 11 bankruptcy<\/p>\n
When Friendly’s entered Chapter 11 bankruptcy in November, 2020, it closed 63 of the 500 remaining restaurants it had at the time, according to Forbes. <\/p>\n
This was actually the chain’s second filing after it survived a 2011 Chapter 11. <\/p>\n
“Friendly\u2019s, which is mired with $250 million in debt, also said it plans to enter into a 363 sale process with an affiliate of private-equity owner Sun Capital. The Boca Raton, Fla.-based buyout shop will serve as a lead, or ‘stalking horse,” bidder to facilitate a quicker turnaround process,” Fox Business reported at the time. <\/p>\n
The chain, according to its Chapter 11 filing on PacerMonitor, was suffering from declining sales due to stressed American economy.<\/p>\n
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\u201cThe strategic decision to pursue a financial restructuring will allow us to proactively and quickly improve our financial position and ensure we have the resources to build a better and stronger Friendly’s for our loyal guests, retail customers, suppliers and other business partners,\u201d then CEO Harsha Agadi said in a media statement.<\/p>\n
Now, more than five years after emerging from bankruptcy, Friendly’s has new owners, many fewer stores, and a major comeback plan.<\/p>\n
A Friendly’s timeline:Friendly\u2019s was founded in 1935 in Springfield, Massachusetts by brothers S. Prestley Blake and Curtis Blake as a small ice cream shop selling 5-cent cones, according to Dairy Foods.The chain grew to more than 850 restaurants at its peak during the late 1980s and early 1990s, reported Restaurant Magazine.Friendly\u2019s Restaurants LLC filed for Chapter 11 bankruptcy protection on Nov. 1, 2020, in the U.S. Bankruptcy Court for the District of Delaware, according to PacerMonitor.CNBC reported that Friendly\u2019s planned to sell \u201csubstantially all\u201d of its assets to Amici Partners Group for nearly $2 million during the bankruptcy process, CNBC reported.Friendly\u2019s had previously filed for Chapter 11 bankruptcy in 2011 before emerging from restructuring in 2012, according to the CT Post.Friendly’s has a new owner<\/p>\n
Legacy Brands International owner CEO Amol Kohli has acquired Brix Holdings from Jamco Interests and John Antioco, its founder and former chairman, via stock purchase for under $50 million. <\/p>\n
The acquisition gives Kohli control of several mall- and family-focused restaurant and dessert brands. Those include Friendly\u2019s, Clean Juice, Orange Leaf, Red Mango, Smoothie Factory + Kitchen, Souper Salad\u00a0and\u00a0Humble Donut Co.\u00a0<\/p>\n
Terms were not disclosed, according to a press release. <\/p>\n
Kohli, who worked at Friendly’s as a teenager, will take over as CEO. <\/p>\n
“Following the ownership transition,\u00a0Kohli will not only lead Brix in its ‘better for you’ mission but also seek further brands to acquire. Additionally, he will focus on expanding Friendly\u2019s into Southeast and Southwest markets like Georgia, the Carolinas, and Texas, while increasing brand awareness,” according to Franchise Times.<\/p>\n
Kohli was Friendly’s largest remaining franchise operator with 31 stores.<\/p>\n
Friendly\u2019s built its business around the idea that family dining and ice cream went together.<\/p>\n
Shutterstock<\/p>\n
Can Friendly’s make a comeback?<\/p>\n
Jason Kaplan who runs JK Consulting, a New York City based international restaurant consulting firm, told Forbes Friendly\u2019s veered off-course when it \u201clost focus on its core products including its ice-cream.\u201d <\/p>\n
“The stores became outdated, and the food, a bit tiresome and not in touch with current food trends,” he shared.<\/p>\n
He does think the chain can get back on track.<\/p>\n
\u201cKeep focused on your staple of making great burgers and ice-cream,\u201d he added.<\/p>\n
Friendly’s also faces a challenge in competing with more modern family-friendly chains like Chili’s and Applebee’s \u2014 it does not sell alcohol.<\/p>\n
“Restaurants that sell alcohol reap the benefits of big sales, big margins, and veto vote power. Alcohol sales for big chains are in the hundreds of millions on an annual basis,” according to Technomic data as reported by Nation’s Restaurant News.<\/p>\n
Not offering alcohol hurts a restaurant’s bottom line.<\/p>\n
“As restaurant owners know, alcohol has always had a far higher profit margin than food,” according to NBC News.<\/p>\n
Related: Popular McDonald\u2019s rival quietly shuts down multiple locations<\/p>\n
#Iconic #family #dining #chain #survived #bankruptcy #lost #stores<\/p>\n","protected":false},"excerpt":{"rendered":"
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