The future of TGI Fridays’ UK restaurants has been thrown into fresh uncertainty, despite the American-themed chain being taken over only last month, new reports show.
The company’s 49 British sites are now facing renewed questions over their long-term viability as the business enters another major restructuring phase.
According to Sky News, financial advisory firm Interpath has been hired to review “strategic options” for TGI Fridays’ UK business, including identifying potential investors.
The firm has begun sounding out possible buyers in recent days, raising concerns that the chain could be heading for another ownership shake-up or even site closures.
The move comes at a difficult time for the brand, which has been battling soaring costs, shrinking consumer spending and fierce competition across the casual dining sector.
It also follows a recent change of ownership: Sugarloaf – the company that runs most of TGI Fridays’ global operations – took control of the UK restaurants only last month.
The rapid decision to explore a sale has raised eyebrows within the industry, particularly as it falls during the crucial festive trading period – normally the most profitable stretch of the year for restaurant groups.
TGI Fridays set to be sold again
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PA/TGI Friday’sThe speed of the review has prompted speculation that the new owners may be reluctant, or unable, to finance a full turnaround of the UK business.
Nearly 2,000 jobs and 49 restaurants are now in the balance, and staff are expected to seek clarity on what the strategic review could mean for their future.
Phil Broad, president of TGI Fridays International Franchising, confirmed: “The directors of TGI Fridays UK can confirm they are working closely with independent advisors to explore all available options for securing the long-term future of TGI Fridays in the UK.”
He added: “Since assuming control last month, our priority has been to protect jobs, support our employees, and continue to deliver the welcoming, celebratory experience guests expect from TGI Fridays.”
The overhaul involved updating half the menu offerings and substantially reworking seventy per cent of grill items.
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PA IMAGESThe restaurant group had been under the ownership of investment companies Calveton UK and Breal Capital for approximately twelve months before the Sugarloaf transaction.
During their stewardship, these firms implemented measures to strengthen the business’s operations and workforce stability.
A comprehensive brand refresh launched on July 4 this year yielded positive results, with the chain recording a ten per cent rise in customer numbers and a seventeen per cent increase in grill revenue within a month of implementation.
The overhaul involved updating half the menu offerings and substantially reworking seventy per cent of grill items.
The transformation extended beyond menu changes, incorporating a revised service approach and extensive retraining programmes for the 2,000-strong workforce.
Sugarloaf TGIF Management operates under the leadership of Ray Blanchette, who previously served as chief executive of TGI Fridays. The company functions as the custodian and manager of the TGI Fridays brand globally.
The restaurant industry continues to face economic pressures, with the recent Budget failing to deliver the financial support that hospitality businesses had sought. Whilst the sector avoided the severe impact many had anticipated from Rachel Reeves’s fiscal statement this autumn, the measures introduced fell short of industry expectations for meaningful relief.
Mr Broad indicated that “these discussions are progressing constructively, and we will provide further updates when appropriate.”
Below is a list of the TGI Fridays restaurants that have already shut
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TGI FridaysHere are all of the TGI Fridays restaurants that have already shut:
- Barnsley
- Birmingham
- Bracknell
- Brighton Marina
- Bristol Cabot Circus
- Cardiff Newport Road
- Chelmsford
- Cheltenham
- Croydon
- Derby
- Dundee
- Durham
- Edinburgh Fort Kinnaird
- Enfield
- Gateshead
- Gloucester Quays
- Halifax
- Jersey
- Leeds
- Leeds Trinity
- Leicester
- Lincoln
- Manchester Royal Exchange
- Newcastle Eldon Square
- Newport
- Northampton
- Prestwich
- Romford
- Sale
- Solihull
- Southampton West Quay South
- Speke
- Sutton Coldfield
- Swansea
- Watford North