From CNBC.

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

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