TGI Fridays in the UK has undergone significant restructuring, resulting in major changes for its workforce.
- Despite a private equity rescue plan saving 51 restaurants, 35 branches closed, and 1,012 jobs were lost.
- Staff at closed locations faced abrupt notices, often informed of redundancies through brief video calls or messages.
- The treatment of affected employees has drawn criticism from trade unions, citing poor pay and lack of compensation.
- Private equity owners plan to modernise the business amid a challenging UK dining sector.
The recent acquisition of TGI Fridays by private equity entities Breal Group and Calveton has led to swift changes within the UK branch of the restaurant chain. This buyout, which secured 51 out of a previously larger number of restaurants, has resulted in the unfortunate closure of 35 outlets, consequently leading to 1,012 job redundancies. The impacted branches were unable to withstand ongoing financial pressures and were placed into administration by the owner, Hostmore, last month due to significant debts and underperformance.
The manner in which affected staff were informed of their redundancies has become a point of contention. Reports from various sources, including the union Unite, suggest that many employees were notified of their job losses with as little as an hour’s notice, often via impersonal video calls or messaging applications like WhatsApp. Unite has described the situation as ‘frankly appalling’, underscoring the urgency with which the closures were executed.
Employees at these branches have voiced concerns related to their impending compensation, specifically regarding the payment of their last wages, holiday entitlements, and gratuities. These apprehensions have added to the distress felt by those abruptly made redundant. Hostmore had initially believed negotiation with landlords might avert some closures, but administrators confirmed that 35 locations ceased operations immediately.
Julie McEwan, CEO of TGI Fridays UK, conveyed her regrets about the necessary measures, stating a deep sense of loss for the colleagues who have been forced to leave. Despite the turmoil, she expressed gratitude for the dedication shown by the departing staff during their tenure.
The newly acquired branches under Breal Group and Calveton remain operational. The new owners have expressed intent to rejuvenate the brand by leveraging its strong heritage and are enthusiastic about working alongside the current management team. This revitalisation comes at a pivotal moment, as economic pressures and rising costs continue to challenge the casual dining sector in the UK.
Daniel Smith from Teneo, the firm overseeing the administration, commented on the transaction’s potential to preserve a majority of jobs, which is anticipated to offer stability and growth prospects for the brand. As TGI Fridays navigates through these turbulent times, the focus will be on adapting to an evolving market landscape.
The restructuring of TGI Fridays in the UK underscores the challenges faced by the casual dining sector amid economic pressures.
