TGI Fridays has announced that it has reached an agreement on exclusivity and on a non-binding basis for a proposed all-share acquisition by a UK-based hospitality business and the brand's largest global franchisee, Hostmore plc. The deal, expected to close in the third quarter of 2024, would create a global hospitality brand, offering the casual restaurant pioneer operational and financial flexibility, increased scale and capital to deliver continued revenue and an exceptional experience for TGI Fridays Guests.
As a leader in the casual dining industry, TGI Fridays reported $1.4bn in total systemwide sales in 2023 alone. Upon completion of the transaction, the new combined entity would be named TGI Fridays plc and listed on the London Stock Exchange as "TGIF" with both US and global operations of the brand remaining in place at the company's Dallas headquarters under the leadership of current Chief Executive Officer, Weldon Spangler. Additionally, the combined entity would have 189 corporate-owned restaurants in the United States and the United Kingdom for a total of nearly 600 restaurants across 44 countries.
"We have been laser-focused on revitalising the brand and driving growth through consumer-centric offerings, optimising our restaurant portfolio, and adding senior team members. This transaction represents the next step in our journey as it increases our corporate-owned restaurant locations and provides capital to expand our presence globally," said TGI Fridays chief executive officer, Weldon Spangler.
"Hostmore is the perfect partner to help us achieve our vision, as they understand the importance of bringing 'That Fridays Feeling' to Guests in the brand's largest international market, operating 89 locations in the UK."
As the world's first casual bar and grill, TGI Fridays has prioritised creating an exceptional guest experience. The brand is raising its bar with a new $5 Happy Hour program and on-trend beer, wine, spirits, and non-alcoholic drinks like its most recent Tax Break cocktail. It's on the pulse of what consumers want with unique flavour combinations, the brand's recent Busted Bracket offering, and a new everyday value menu. The brand has already seen positive momentum on these new initiatives, as well as significant improvements in guest satisfaction metrics as measured by social sentiment.
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