TGI Fridays UK: Major Restructuring and Job Losses Following Rescue Deal
TGI Fridays, the popular American-themed restaurant chain, has been saved from complete closure in the UK after a rescue deal was struck. However, despite the acquisition, more than 1,000 jobs will be lost, and 35 restaurants will close their doors immediately. This comes after the chain’s previous UK operator, Hostmore, fell into administration last month.
Rescue Deal Saves Over 2,000 Jobs
The new owners, Breal Capital and Calveton UK, have taken over 51 TGI Fridays locations, safeguarding nearly 2,400 jobs across the country. The buyers, who also have investments in other restaurant groups like Byron Burgers and D&D London, aim to modernize the TGI Fridays brand while capitalizing on its long-standing heritage.
However, 35 branches were not included in the deal, resulting in 1,012 employees being made redundant. The affected restaurants span across major UK cities, including Birmingham, Leeds, and Manchester.
Impact on Workers
The sudden closures have left many workers frustrated and uncertain about their futures. Some staff members reported being locked out of their workplaces, with padlocks changed overnight, and others were invited to redundancy meetings with little notice. The union representing many of the affected employees criticized the treatment of staff as “a national disgrace,” citing concerns over unpaid wages, holiday pay, and tips.
Julie McEwan, the CEO of TGI Fridays UK, expressed her sorrow for the employees who lost their jobs, saying the company is doing everything possible to support those affected.
Future of TGI Fridays UK
Despite the setbacks, the new owners are optimistic about TGI Fridays’ future in the UK. The plan is to revitalize the brand and adapt to changing consumer preferences, which have shifted towards healthier, more diverse menu options in recent years. This, they believe, will help the chain regain its appeal, particularly among younger diners and families who frequent retail parks and shopping centres.
Industry experts are also hopeful that with new investment and strategic changes, TGI Fridays can overcome the challenges facing the casual dining sector.
A Challenging Time for Casual Dining
TGI Fridays’ difficulties are part of a broader trend in the UK’s casual dining sector, which has struggled to bounce back fully from the impact of the COVID-19 pandemic. Rising costs, reduced consumer spending, and changing dining habits have all contributed to the closure of several well-known restaurant chains.
With Breal Capital and Calveton UK at the helm, TGI Fridays now has a chance to reestablish itself on the high street, albeit with a smaller footprint.
This streamlined article offers a clear picture of TGI Fridays’ situation in the UK while removing references to specific news sources, making it easy for readers to follow the key events.