How Private Equity Is Behind Red Lobster And TGI Fridays’ Bankruptcies

Between 2014 and 2024, private equity firms invested more than $90 billion into U.S. restaurants and bars. Red Lobster and TGI Fridays were two of the most notable. The two casual dining giants were acquired through a transaction type called a leveraged buyout that ultimately contributed to their bankruptcies in 2024. Watch the video above to learn more about the most commonly used strategies by private equity firms, including sale-leasebacks and roll-ups, to try to turn a company around. Chapters: 0:00 Introduction 1:16 Chapter 1. What is private equity? 4:33 Chapter 2. When private equity takes over 8:59 Chapter 3. What’s next on the menu Produced by: Natalie Rice Edited by: Darren Geeter Animation: Jason Reginato Senior Managing Producer: Tala Hadavi Additional Sources: PitchBook Additional footage: Getty Images, Red Lobster, P.F. Chang’s