The recent TGI Fridays rescue results in significant impacts, including job losses and closures, despite a private equity intervention.
- Over 1,000 employees face redundancy as 35 branches shut down amidst a restructuring effort.
- Private equity firms have stepped in to secure the future of 51 TGI Fridays restaurants, aiming to modernise the brand.
- Controversy arises from the manner in which staff were informed of redundancies, sparking criticism from the trade union Unite.
- The new direction seeks to stabilise the remaining restaurants, emphasising the need for adaptation in a competitive market.
Despite a private equity buyout, TGI Fridays has closed 35 branches, leading to over 1,000 job losses. The rescue was orchestrated by the backers of D&D London, who managed to secure 51 restaurants out of administration, preserving approximately 2,400 jobs. However, the process has been marred by the way employees were informed, with some receiving as little as one hour’s notice via video calls, while others were locked out and notified through WhatsApp messages.
Employee treatment during the closures has been strongly criticised. The trade union Unite described it as ‘frankly appalling,’ citing uncertainty of receiving full pay, reimbursement for accrued holiday pay, and tips. The owner of TGI Fridays in the UK, Hostmore, previously filed for administration due to debts and poor trading, contributing to the situation.
The new owners, private equity firms Breal Group and Calveton, have plans to revitalise TGI Fridays. They are also associated with brands like D&D London, Byron Burgers, and Vinoteca wine bars. Their goal is to modernise the TGI Fridays brand while leveraging its heritage. They expressed enthusiasm about working with an engaged management team to capitalise on this iconic brand’s legacy and potential.
The UK casual dining sector faces significant challenges. Competition is heightened by economic pressures, reduced discretionary spending, and rising operational costs. Daniel Smith, senior managing director of Teneo, expressed hope that the deal would preserve a substantial proportion of jobs and provide the necessary support for the business’s recovery and growth.
The closures have profoundly affected staff, yet the future seems hopeful for the saved branches. TGI Fridays must adapt to survive in this competitive landscape, and the remaining employees’ contributions are vital for the brand’s continued success.
The restructuring of TGI Fridays underscores the ongoing challenges in the casual dining sector and the necessity for adaptability and modernisation.
