The recent rescue of TGI Fridays by private equity firms has prompted the closure of numerous branches, leading to substantial job losses.
- Over 1,000 employees have been made redundant as 35 branches shut down immediately.
- The majority of the workforce, around 2,400 employees, remain in secured positions across 51 saved outlets.
- Questions have arisen regarding the treatment of redundant staff, with reports of abrupt notices via video calls and messages.
- The new ownership aims to modernize TGI Fridays amidst a competitive casual dining market in the UK.
The recent acquisition of TGI Fridays by private equity firms Breal Group and Calveton has led to significant restructuring within the company, resulting in the immediate closure of 35 branches and the consequent redundancy of over 1,000 employees. Despite this, approximately 2,400 jobs were secured as the new owners saved 51 restaurants from administration.
The manner in which redundancies were communicated to employees has drawn criticism. Reports indicate that some staff were informed via video calls with as little as one hour’s notice, while others were notified through WhatsApp messages after being locked out of their workplaces. The trade union Unite has expressed outrage, describing the situation as ‘frankly appalling,’ with many workers uncertain about the status of their pay, accrued holiday, and tips.
The closures followed Hostmore’s filing for administration, precipitated by financial difficulties and poor trading performance. Initial efforts to negotiate with landlords in hopes of retaining more branches were unsuccessful, as confirmed by the administrators at Teneo, leading to unavoidable closures and layoffs.
Julie McEwan, Chief Executive of TGI Fridays UK, expressed her sadness over the situation, acknowledging the loyalty and contribution of departing employees. Despite the unfortunate circumstances, she assured that efforts are being made to support those impacted and to retain the remaining team.
The new ownership, which also manages D&D London, Byron Burgers, and Vinoteca wine bars, plans to rejuvenate the brand by leveraging its established heritage while adapting to the current market. A spokesperson for the group stated their enthusiasm to work with an eager management team to modernize TGI Fridays.
As the hospitality sector grapples with economic challenges, increased competition, reduced discretionary spending, and rising operational costs, the move to revitalize TGI Fridays must balance preserving jobs and adapting to a shifting market landscape. Daniel Smith of Teneo highlights the importance of providing stability and support to facilitate recovery and growth for the business.
The restructuring of TGI Fridays underscores the urgent need for adaptation in a challenging economic environment.
