Dallas-based TGI Fridays will be acquired by British franchisor Hostmore PLC and go public in the process, the companies announced Tuesday.
The Dallas casual-dining chain had planned to go public in 2020, but that was derailed by the COVID-19 pandemic. The acquisition, valued at $220 million, is expected to close in the third quarter of 2024 and will position the company for the future through increased scale and greater financial flexibility.
“This is an exciting moment for our brand and another step in the transformation that began several months ago,” said Weldon Spangler, CEO of TGI Fridays. “We believe this demonstrates true confidence in our brand around the world, and we believe this will position us to be a growing and thriving business.”
The new company will be headquartered in Dallas, will be called TGI Fridays PLC and will trade on the London Stock Exchange as TGIF. The acquisition will combine the company’s operating entities and bring its total restaurant footprint to approximately 600 restaurants in 44 countries. TGI Fridays operates 230 locations in the United States.
TGI Fridays, known for its stuffed potato skins and striped-clad waiters, has been in turmoil after abruptly closing 36 “underperforming locations” this year after reporting an 18% drop in U.S. total store sales for 2023. The company has reported 2023 sales of $1.4 billion.
Spangler said TGI Fridays doesn’t expect any store closures in the near future and restaurant closures are likely a thing of the past.
TGI Fridays, which began as a cocktail bar in New York, faces stiff competition from other bar-and-grill concepts such as Chili’s, owned by Dallas-based Brinker International, and Glendale, Calif.-based Applebee’s.
Spangler, who has led TGI Fridays since the company’s former CEO, Brandon Coleman, stepped down for personal reasons two months after taking the job, is hoping to usher in a new era for the restaurant chain.
He said his top priority was investing in renovations across the country while capitalizing on nostalgia and sporting and non-sporting events to keep customers happy.
“We actually hear stories of people who met at Friday’s getting married. We have a rich tradition and history of great cocktails and appetizers, and we can take full advantage of that,” Spangler said. “If you think about what we did recently, we had a promotion for the NCAA basketball championships. We had tax-credit cocktails. We can and should own this lane, because there’s so much opportunity.”
For Hostmore, the move will strengthen the company by further positioning TGI Fridays within its already large portfolio, said Steven Welcker, chairman of Hostmore.
“This acquisition provides us with the scale and flexibility to accelerate our existing strategy, improving Hostmore’s financial prospects and scope for shareholder returns while enhancing our ability to deliver exceptional guest experiences leveraging our distinctive and trusted brand as the place to celebrate,” he said.
TGI Fridays will continue to be managed by TriArtisan Capital Advisors, the New York-based private equity firm that has held a majority stake in the company since 2014. Going public has been something TGI Fridays has been planning for years, and Spangler said he sees a bright future for the company.
“When you look at a place like the Dallas Fort Worth airport, we have five stores there. There are a lot of restaurants in Dallas Fort Worth that are doing very well,” he said. “We’re a relevant brand. People still love us. People still want to go out because of this effort. And we think we’re well positioned to take full advantage of this.”
