TGI Fridays and Hostmore, the U.K. franchisee of the popular American restaurant chain, recently announced a merger deal valued at 177 million pounds. This all-share deal, if successful, will lead to TGI Fridays being publicly traded on the London Stock Exchange under the ticker symbol “TGIF.” The headquarters for the company’s U.S. and global brand operations will continue to be based in Dallas, Texas. CEO Weldon Spangler will retain his position even after the merger.
The merger would result in the new entity owning a total of 189 restaurants in the United States and the United Kingdom. The remaining 400 locations globally will continue to be operated by franchisees in 44 countries. Pending regulatory approval, the merger is anticipated to be finalized in the third quarter of the year. This strategic move comes after TriArtisan Capital Advisors’ acquisition of TGI Fridays in 2014.
Despite a 3.6% revenue increase in 2022, TGI Fridays has faced challenges in the competitive restaurant industry. The decline of shopping malls and shifting consumer preferences have impacted the casual-dining segment. In response, CEO Weldon Spangler has emphasized a return to the company’s roots by focusing on its bar offerings. Alcoholic beverages are known to be more profitable than food in the restaurant business, and this shift in strategy could prove beneficial for TGI Fridays.
Strategic Leadership and Restructuring
Under Spangler’s leadership, TGI Fridays has made significant changes, such as hiring industry veteran Ray Risley as the U.S. president. The company has also taken steps to streamline its operations by closing 36 underperforming restaurants earlier this year. These strategic decisions are aimed at revitalizing the brand and improving overall performance in a challenging market environment.
The merger between TGI Fridays and Hostmore represents a strategic move to drive growth and enhance the company’s competitive position in the restaurant industry. By leveraging its strengths and focusing on core offerings, TGI Fridays aims to navigate through the challenges and capitalize on new opportunities for success. As the merger progresses, stakeholders will closely monitor the developments and outcomes of this significant deal in the restaurant sector.