TGI Fridays to go public through merger with its U.K. franchisee

TGI
Fridays
and
Hostmore,
the
chain’s
U.K.
franchisee,

announced
plans
to
merge
on
Tuesday.

The
all-share
deal
is
valued
at
177
million
pounds,
or
$220
million.
If
it
closes,
TGI
Fridays,
best
known
for
its
potato
skins,
chicken
wings
and
endless
appetizers,
will
be
publicly
traded
on
the
London
Stock
Exchange
under
the
ticker “TGIF.”

The
company’s
headquarters
for
its
U.S.
and
global
brand
operations
will
remain
in
Dallas,
Texas.
CEO
Weldon
Spangler,
who
has
led
the
company
since
October,
will
keep
his
current
role.

“As
we
were
thinking
about
our
future
and
working
with
Hostmore
on
their
future,
it
was
one
of
those
ideas
that
somebody
brought
up
and
everybody
looked
at
each
other
and
said, ‘This
might
just
work,'”
Spangler
told
CNBC.

The
new
company
would
own
189
restaurants
in
the
U.S.
and
the
U.K.,
the
companies
said.
Franchisees
would
operate
the
remaining
roughly
400
locations
of
the
chain’s
global
footprint,
which
spans
44
countries.

If
approved
by
regulators,
the
merger
is
expected
to
close
in
the
third
quarter.

TriArtisan
Capital
Advisors
bought
TGI
Fridays
from
longtime
owner
Carlson
Restaurants
in
2014
in
a
deal
reportedly
valued
at
more
than
$800
million.
TriArtisan
also
owns
stakes
in
P.F.
Chang’s
and
Hooters.

In
2019,
TGI
Fridays

announced
plans
to
go
public
through
a
merger
with
a
special
purpose
acquisition
company,
but
that
deal
fell
apart
as
the
Covid-19
pandemic
roiled
financial
markets
and
the
restaurant
industry.

In
2022,
TGI
Fridays’
revenue
rose
3.6%
to
$75.2
million,
according
to
U.S.
franchise
disclosure
documents.
But
the
bar-and-grill
chain
has
been
stuck
in
turnaround
mode
as
shopping
malls
decline
and
the
casual-dining
segment
loses
customers.

Spangler
told
CNBC
that
TGI
Fridays
is
now
returning
to
its
roots
and
focusing
more
on
its
bar
offerings.
Across
the
restaurant
industry,
alcoholic
drinks
are
typically
more
profitable
than
food.
Under
Spangler,
the
chain
also
brought
in
new
blood,
like
hiring
Del
Frisco’s
Restaurant
Group
veteran
Ray
Risley
as
its
U.S.
president.

Earlier
this
year,
TGI
Fridays

closed
36
underperforming
restaurants
in
the
U.S.