COMPANY RELEASES STATEMENT
President: Prices,
Competition Led
To Friendly’s End
ONEONTA – Friendly’s closing of its Oneonta restaurant and 22 others is part of a “months-long evaluation and careful consideration,” according to a statement from company President George Michel. He cited “competition and rising prices” for the decision.
“We have decided to close 23 corporate-owned restaurants, effective immediately,” Michel said in a letter to franchisees released by the company this evening. “While this was a tough decision, we are confident it will best position the brand for a bright future. Especially difficult is the impact these closures will have on the locations’ wonderful employees, who we are working to support with opportunities in other locations or severance payments and other assistance.”
The closed locations include 14 restaurants in Upstate New York — including Oneonta’s – three in Massachusetts, three in Connecticut, two in New Hampshire and one in Maine. A full list is included at the end of this letter. Following these actions, Friendly’s will have 77 corporate-owned restaurants and 97 franchisee-owned restaurants.
Here is the full statement that was sent to franchisees today:
April 8, 2019
Dear Franchisees:
As we move into the second quarter of 2019, I want to again thank you for the valuable input and insights you’ve shared over the last few months as we accelerate efforts to reinvigorate the Friendly’s brand and chart a successful course forward in the face of shifting demographics and consumer preferences, increased competition, and rising costs. Amidst these industry-wide dynamics, our charge is to ensure our beloved brand not only remains relevant with existing audiences but continues to resonate with new generations of patrons and that our operations are structured to support long-term sustainability.
While there’s much work ahead, we are encouraged by the momentum we’re generating. The energy and enthusiasm for the plans we unveiled at our February meeting was both gratifying and inspiring, as we seek to re-energize our marketing efforts with the addition of a new agency roster, refresh our menu, focus on delivery and catering options, and improve the overall restaurant experience for our customers.
As we mentioned earlier this year, we initiated a strategic assessment of our corporate-owned restaurant footprint, with an eye toward ongoing viability and maximizing resource investment. In today’s environment, it is incumbent upon all restaurant operators to engage in such a process, but particularly so for Friendly’s, which, as an established brand, has locations in geographic areas that have changed dramatically in some cases since those restaurants first opened. After a months-long evaluation and careful consideration, we have decided to close 23 corporate-owned restaurants, effective immediately. While this was a tough decision, we are confident it will best position the brand for a bright future. Especially difficult is the impact these closures will have on the locations’ wonderful employees, who we are working to support with opportunities in other locations or severance payments and other assistance.
The closed locations include 14 restaurants in upstate New York, three in Massachusetts, three in Connecticut, two in New Hampshire and one in Maine. A full list is included at the end of this letter. Following these actions, Friendly’s will have 77 corporate-owned restaurants and 97 franchisee-owned restaurants.
Moving forward, we are committed to continuing to work closely with you to enhance the overall experience for our Friendly’s customers. Thank you again for your support and valuable input.
As always, please contact me if you have any questions.
Sincerely,
George
I understand corporate dynamics, it is obvious that the “human” side of this decision is not understood by corporate. These employees had NO idea this was coming. We ate there on Saturday morning. they even told us about the new offerings on the menu. George, you would have been insulted and vindictive if an employee just up and quit, yet you think so little of these dedicated employees as to cut off their livelihood with no notice. Jobs are hard to come by in this area. I suppose if you had given them advance notice, people would have bailed when they did find a new job, and that would have left you short staffed. That would have certainly affected your “bottom line”. It would however have been the right thing to do. Your flowery letter sickens me. I certainly do not wish your corporation well.
As far as Oneonta is concerned, I certainly don’t see where competion is a factor.
You have two thriving college campuses, a hospital and two major clinics that are staffed with hundreds. Not to mention the families of patients traveling to the area from miles and miles away. There are thousands of residences surrounding it as well as many area small businesses and a thriving Summer baseball camp clientele.
I find it hard to believe that a unique establishment such as Friendly’s is not frequented enough to support itself and those that are employed there.
I also see no competition for that type of restaurant or menu anywhere nearby. Certainly Dunkin Donuts, KFC, McDonalds, Taco Bell, BWW, Wendy’s, Moe’s and even Denny’s or the ice cream at Stewarts across town can’t take the place of Friendly’s. Nor can any of the private restaurants scattered around Main Street. In fact, the closest competion Friendly’s had was The Neptune Diner and that’s gone, along with it’s cheesecake.
So I don’t see where competion factors in or even where lack of clientele is a factor. Perhaps there are factors internally that made the decision easier?
I for one have always had a problem finding a place to park there or had to wait 10 minutes for a table. Both minor inconveniences, always well worth the wait.
If anything, perhaps a move to southside where Christophers was would have been a logical next step.
My only hope is that someone becomes a franchisee and picks up where corporate left off. They can’t go wrong. There is no competition for a juicy bacon cheeseburger, fries and a Happy Ending Sunday or even a Fribble anywhere in Oneonta.