Family favourite restaurant chain SAVED from administration – but dozens of sites at risk

A FAMILY favourite restaurant chain has been saved from administration after after a major buyout.

Hostmore, the UK owner and operator of TGI Fridays, has been sold just weeks after the struggling restaurant business went under.

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Breal Capital and Calveton, which jointly owns the posh restaurant business D&D London, have acquired the chain.

The rescue deal saves 51 of the chain's 87 sites and at least 2,000 of its more than 3,000-strong workforce.

Buyers have no obligation to purchase the entirety of a bust chain.

TGI says that it is hopeful that it "may be able to secure further locations" following discussions with the landlords.

However, 36 TGI restaurants and over 1,000 staff members remain at risk for the time being.

Julie McEwan, chief executive of TGI Fridays UK, said: "TGI Fridays is a much-loved brand with a rich heritage.

"The news today marks the start of a positive future for our business following a very challenging period for the casual dining sector as a whole.

"We look to the future with confidence that the TGI Fridays brand will continue to attract loyal and new guests."

The American-inspired restaurant chain continues to operate as usual today.

On September 18, Hostmore appointed joint administrators from Teneo.

All 87 TGI Fridays restaurants were put up for sale at the time of the announcement.

Hostmore said that it was not expecting to "recover any meaningful value" from the sale of sites.

Since its debut in Birmingham in 1986, TGI Fridays quickly expanded nationwide, winning over diners with its casual American bistro-style experience.

Serving staff were known as Dub Dubs, and taught the art of entertaining their customers with jokes, banter, and other gimmicks like juggling and magic tricks, all performed with impeccable table craft and cheeriness.

A decade ago, the chain was acquired by a private equity firm, which rebranded it by removing all punctuation, resulting in the name TGI Fridays.

In 2021, the company was spun off into Hostmore, a listed entity. The restaurants were briefly rebranded as 'Fridays,' but marketing chiefs quickly reverted to the original name after realising that customers still referred to it as 'TGI's.'

Recently, the chain's fortunes have waned, with Hostmore reporting that UK sales have dropped by more than 10% this year compared to last year.

TGI Fridays' biggest market is the US, where it operates 128 restaurants, including franchised sites.

It also operates more than 270 restaurants in countries around the world.

HOSPITALITY WOES

The hospitality sector has struggled to bounce back after the pandemic, facing challenges including soaring energy bills, inflation and staff shortages.

In January 2023, Byron Burger fell into administration with owners saying it would result in the loss of over 200 jobs.

The Restaurant Group (TRG), which owned Frankie & Benny's, Chiquito and Wagamama, shut dozens of sites in the same year.

It then went on to sell its Frankie & Bennys and Chiquito brands to Cafe Rouge owner The Big Table group in September 2023.

Italian restaurant chain Prezzo also closed dozens of sites last year.

In April 2024, Tasty, the owners of Italian restaurant Wildwood and Dim T, a pan-Asian restaurant, announced plans to exit around 20 loss-making restaurants after a "challenging" start to the year.

In the same month, Whitbread revealed plans to slash its chain of branded restaurants across the UK.

Pub giant Stonegate has also raised fears about its survival as it races to plug its debts.

Britain's "rudest restaurant" went bust in September after its parent company, Viral Ventures UK, reportedly racked up more than £400,000 worth of debt.