TGI Fridays will go public through acquisition by UK
TGI Fridays is being acquired by its United Kingdom franchisee Hostmore plc and going public in the process, the companies announced Tuesday.
The Dallas casual dining chain previously planned to go public in 2020 but was thwarted by the pandemic. The acquisition, val- ued at $220 million, is ex- pected to close in the third quarter of 2024 and will prime the company for the future through increased scale efforts and more robust financial flexibility.
“This is a terrific moment for our brand and it's another step in our transformation that started a few months ago,” said Weldon Spangler, TGI Fridays CEO. “I think it demonstrates real confidence in the brand worldwide. We think this really positions us for growth and to have a thriving business.”
The new company, which will keep its headquarters in Dallas, will be called TGI Fridays plc and be traded on the London Stock Exchange under TGIF. The acquisition brings its total number of restaurants to almost 600 across 44 countries. TGI Fridays operates 230 locations in the U.S.
TGI Fridays, well-known for wait staff wearing striped outfits, has been reeling from abruptly shutting down 36 “underperforming locations” this year after an 18% fall in domestic systemwide sales
in 2023. The company reported $1.4 billion in sales in 2023.
Restaurant closures are likely behind the company as TGI Fridays does not expect to see any locations shuttered in the near future, Spangler said.
TGI Fridays, which started as a cocktail bar in New York, is in a competitive space, going head to head against other bar and grill concepts such as Chili's, owned by Dallas-based Brinker International, and Glendale, Calif.based Applebee's.
Brandon Coleman, the company's former CEO, stepped down after two months on the job for personal reasons. Spangler has been leading TGI Fridays since Coleman left and he hopes to rein in a new era for the restaurant chain.
Investing in renovations nationwide while capitalizing on nostalgia, sporting and non-sports events while satisfying customers is at the top of his list, he said.
“I literally hear stories about people who met at Fridays and now they're married. We have a rich legacy and history in great cocktails and appetizers that we can maximize,” Spangler said. “You look at what we've done recently, we had a promotion with the NCAA Basketball Championship. We had a tax break cocktail. We can and should own this lane because there's so much opportunity.”
For Hostmore, the move should reinforce the company more as it maneuvers TGI Fridays further into its already-large portfolio, said Hostmore chairman Stephen Welker.
“This acquisition would give us the scale and flexibility to accelerate our existing strategy and enhance the financial outlook for Hostmore and scope for shareholder returns, while also strengthening our ability to provide an exceptional guest experience by harnessing our distinctive, trusted brand as the home of celebrations,” he said.