The manager of TGI Fridays’ global operations is acquiring the UK branch of the restaurant chain. This deal safeguards the jobs of over 2,000 employees across nearly 50 locations. Ray Blanchette, the former CEO of TGI Fridays, heads Sugarloaf TGIF Management, the company facilitating this acquisition.
Details of the Acquisition
The pending transaction is expected to be announced imminently. Sources indicate that this acquisition aligns with a broader trend of international consolidation within the TGI Fridays brand, spearheaded by Blanchette. The UK division has maintained job levels despite challenges in the hospitality sector.
- Number of UK locations: Approximately 50
- Employee count: Over 2,000 people
- Previous ownership: Sold to Calveton UK and Breal Capital just over a year ago
- Recent brand relaunch: July 4th, enhancing revenues and customer engagement
Impact on the Hospitality Sector
The hospitality industry in the UK faces significant challenges, including a stagnant economy and increased taxes from the previous year’s budget. The acquisition is seen as a positive move amidst these difficulties. The new leadership aims to stabilize and revitalize the brand, leveraging a strong booking pipeline for the upcoming festive season.
Responses from Stakeholders
A representative for the selling shareholders expressed satisfaction with the transaction. They noted the successful stabilization of the team and supply chains during their ownership. The strategic repositioning of the brand has reportedly yielded positive results, with improved revenue and customer traffic.
This acquisition marks a significant milestone for both TGI Fridays and Sugarloaf TGIF Management, promising a hopeful future for the UK restaurant chain amidst ongoing economic challenges.
