A TGI Friday's franchise in New Jersey was fined $500,000, after eight of their restaurants were discovered to be serving customers cheaper alcoholic beverages, USA Today reported.
"Drink substitution threatens the integrity of the alcohol beverage industry, and retailers, wholesalers and customers all loses because of this illegal activity." said Michael Halfacre, director of the New Jersey Division of Alcoholic Beverage Control.
In May, 13 restaurants own by Braid Restaurant Group were raided by investigators from the Division of Alcoholic Beverage Control. Eight of the 13 were fined with $400,000 for the violations and $100,000 to cover investigative cost. Officials seized about 250 bottles of liquor from those locations, according to USA Today.
Acting Attorney General John Hoffman said Wednesday that the fine levied against Livingston-based Braid Group should send a message to every bar owner, the Associated Press reported.
"This unlawful practice took advantage of consumers who were cheated out of what they thought they were purchasing," Hoffman said in a statement. "This fine should send a clear message to every bar and restaurant throughout New Jersey that consumers should get that they pay for every time without exceptions."
According to its website, Braid is the largest TGI Friday's franchise restaurant operator in the country. In a statement, Braid Restaurant Group said the company is pleased with the settlement and looks "forward to putting this matter behind us."
"In addition to the settlement, we have also made the operations adjustments, initiated new training programs and redoubled our efforts to ensure that all of our restaurants adhere to Fridays' extensive bar and beverage standard," the company said in a statement. "We believe that these actions will results in even higher customer satisfaction and a strengthened level of trust."
As part of the settlement, Braid will also employ an ABC-appointed monitor through June 2014. According to USA Today, the officer will have access to the restaurants' books, records and compensation programs and report it's findings to the New Jersey Alcoholic Beverage Control.
The eight New Jersey restaurants are located in Freehold Township, Marlboro, Hazlet, West Orange, East Windsor, Old Bridge, Piscataway and Linden.
