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Ron Ruggless Nation's Restaurant News reports on TGI Fridays. Franchisee Hostmore’s purchase of TGI Fridays falls through U.K. firm’s stock drops more than 91% after announcement, and company faces likely delisting Hostmore plc,, the United Kingdom-based franchisee of casual-dining TGI Fridays, said its planned reverse takeover of the Dallas-based franchisor was off, and shares of the company fell more than 91% Monday. Hostmore said it expects to be delisted on the U.K. stock exchange after telling shareholders that the Fridays buyout wouldn’t proceed after the franchisor lost control over many of its assets. Hostmore, which owned and operated 87 restaurants, also said its planned sale of corporate stores generated bids that indicate consideration will be less than the borrowings. As such, Hostmore said it didn’t expect to “recover any meaningful value for its ownership.” Hostmore and TGI Fridays agreed in April to merge  the 87-unit United Kingdom-based franchisee with the Dallas-based Fridays parent company. Hostmore was Fridays largest global franchisee. Terms of the all-share merger were reported to be about $220 million U.S. The deal had been scheduled to close in the third quarter. However, Fridays was removed as manager of TGIF Funding, which owns the rights to collect restaurant royalties and that was moved to a bondholder-approved party, FTI Consulting, according to the Financial Times. TGI Fridays assets have served as collateral for asset-backed securities it sold in 2017, Reuters News Agency and Bloomberg reported, and it lost control of them last week after it failed to provide bondholders with required documents on time. Hostmore, which went public on the London markets in 2021, “is also dealing with mounting debts and loss-making TGI Fridays outlets it owns, which last year resulted in management changes, deep cost cuts and made it halt new store openings until 2025,” Reuters reported. TGI Fridays will continue U.K. operations under new ownership, Hostmore said. Technomic’s Ignite data for 2023 ranked TGI Fridays’s sales at No. 79 among U.S. chain restaurants with an estimated $702 million in sales at 233 units. Hostmore was established in 2021 and had developed a quick-service version of TGI Fridays called Fridays and Go. https://lnkd.in/eNvHnq4Y

# Only put off until tomorrow what you are willing to die having left undone ## First Watch Restaurant Group, Inc. \(FWRG\) Expands with Acquisition of 16 Franchise Restaurants First Watch Restaurant Group, Inc. FWRG has recently announced its agreement to acquire 15 franchise-owned locations and one restaurant under construction in North and South Carolina. With a total investment of $49 million, this strategic move is expected to close by mid-April 2025, subject to customary closing conditions. The acquisition marks a significant milestone for First Watch as it continues to strengthen its presence in the restaurant industry. By expanding its franchise portfolio, the company aims to tap into the growing market in the Carolinas and provide customers with exceptional dining experiences. As an experienced Investment Advisor, I strongly believe in the potential of Health Savings Accounts \(HSAs\) as a tool for long-term financial growth. Investing in companies like First Watch Restaurant Group can be a wise choice, especially when considering the increasing demand for healthcare and wellness-related services. ## Take Action Now to Secure Your Future Don't miss out on the opportunity to grow your HSA through strategic investments. Act now to invest wisely and secure your financial future. With the Fear of Missing Out \(FOMO\) being a common concern in today's fast-paced world, empower yourself by making informed investment decisions. #hsa #investing #healthcare #health #family #wellness 💪📈💰 \(Note: The provided summary had incomplete information, so the response is based on the available details.\)

D&D London owners cook up TGI Fridays takeover The owners of some of London's most prominent restaurants are in talks to buy the UK operations of TGI Fridays, the casual dining chain whose parent company collapsed into administration last week. Sky News has learnt that Breal Capital Group and Calveton, which acquired D&D London - owner of the German Gymnasium and Quaglino's restaurants - last year, are in advanced negotiations to take on TGI Fridays' British franchise. Industry sources said the deal was likely to see the new owners taking over the majority of its 89 sites, but that a significant number of jobs were nevertheless expected to be lost. One analyst estimated that between 50 and 60 TGI Fridays sites were commercially viable, which they said was likely to mean the new owners would be able to save roughly three-quarters of TGI Fridays' current UK workforce of about 3200 people. Hostmore plc the parent company, said last week that it was filing for administration but this would have no impact on Thursdays, the trading subsidiary. However, the operating business is itself understood to have filed a notice of intention to appoint administrators on Monday. "The board inherited a very challenging set of circumstances, but a focus on reducing costs, revising the Group's capital allocation policy and implementing both board and senior management changes, meant that the group was able to reduce annualised expenditures by £12m, significantly reduce losses from unprofitable stores, and operate the group's stores at a best in class efficiency level for the sector, all while improving guest scores to our highest levels on record," Hostmore said in a statement to the London Stock Exchange last week. "Unfortunately, all of the board's efforts to implement a lasting solution to support the long-term financial future of the business came against a highly challenging trading and macroeconomic backdrop, and efforts to create value for shareholders through the proposed acquisition of TGI Fridays, while well-advanced, encountered adverse events outside of the board's control." It was unclear how much Breal and Calveton were likely to pay for TGI Fridays in the UK, although one industry source expressed confidence in their ability to run a slimmed-down version of the business successfully. "They are seasoned hospitality people," the source said. The deal is understood to include the chain's existing leases and the right to use the TGI Fridays brand in the UK. The collapse of TGI Fridays' UK parent comes less than six months after it struck a deal to reverse the US restaurant business of the same name into London-listed Hostmore. Breal, Hostmore and Teneo, which is handling the administration, declined to comment, while Calveton could not be reached for comment. Thoughts? ☎️ #hospitality #cocktails #drinks #business #property #bars #deals @skynews https://lnkd.in/eT8FfAfT

I took a dive into some recent results from Culver's. Since 2019, the brand has opened 262 locations and should finish 2024 with just short of 1,000 restaurants. Meanwhile, stores are averaging nearly $3.5 million, which is significantly higher than pre-COVID, when the figure was $2.435 million. That $3.5M performance, going off last year's QSR 50, would trail only Chick-fil-A, Raising Cane's, Shake Shack, Whataburger, and McDonald's among the top 50 grossing quick-serves in America. And Culver's continues to do all of this without straying from its founder-led principles dating back to 1984—food made to order, hospitality first, and a commitment to employee care. Interesting how in this business, while never easy to execute at scale, brands often win by delivering on the ticks of hospitality guests have always cared about, no matter what crazy thing is going on in the world.

Consumers are exploring different types of restaurants as they try to scale back their spending. Quick service restaurants (QSRs) are seeing higher foot traffic than full-service restaurants (FSRs) at the moment, but there’s an ongoing conversation about what QSRs can do to maintain that momentum even as costs continue to rise. Rather than passing off those ever-rising costs to diners, operators are figuring out ways to cover those costs in a customer-friendly way. This market environment is why I think partnerships like the ones Upside recently announced with OneDataSource and Wizardline Technologies, Inc are so helpful for restaurant operators. Now they can take the work they’ve already done to aggregate and organize their data and operationalize it with Upside. Restaurants are able to offer customers more value in a way that’s personalized and profitable, which leads to more customer visits and higher spend, with clear impact measurement. That is very different from the blanket discounts that precede the bankruptcy news we read about in the industry. Wizardline Technologies, Inc. Partners with Upside to drive more value to Domino's franchises Nearly 160 Domino’s franchise stores have already used the partnership to facilitate onboarding onto the Upside platform. (3 MB) https://lnkd.in/eXwpZ6d7

CASUAL DINING IMPLICATIONS FROM RECENT BANKRUPTCY EVENTS It is very hard to make money in a casual dining box with AUVs of $2.5 million or less. The variable margin (flow through) will be less than the industry hoped for 50% because of royalties paid. On such a small sales base, rent fluctuations above norm, as well as remodeling, maintenance CAPEX and debt service outflows pose free cash flow challenges. Some casual dining brands such as Brinker International and Texas Roadhouse have bought franchisee units back in defranchising moves. However, IMO there was one fine dining brand that made franchising work in the US. That was Ruth's Hospitality Group. Franchisees were left alone to develop in certain markets, and franchisor/franchisee relationships were good. Their AUVs were much higher, typically $5 million and above. Some company defranchising moves occurred such as purchase of the Hawaii market. The US is always the most competitive for many reasons. International Franchise/JV actions/Master Franchising can work internationally such as Outback Steakhouse Brasil, but in more select geographies. and with fewer units. Look at Darden for its approach in managing several casual ding brands. QSR franchising has been proven to work globally in the US and many international nations. But casual dining is different. Thank you Nation's Restaurant News Alicia Kelso for writing.

Upside's new partnerships with OneDataSource and Wizardline Technologies, Inc are great examples of the role that vendors can (and should) play in helping restaurants rise to meet ever-changing industry challenges. Since March 2020, restaurant operators have faced many challenges — mandatory closures, reduced foot traffic, supply chain disruptions, labor shortages, inflationary pressures… it all adds up. Many brands are using aggressive discounting and value menus to counter negative traffic trends, but the recent news from Red Lobster is a warning that the answer is *not* blanket discounting. Upside is working with OneDataSource and Wizardline to implement effective revenue management. By partnering together, Upside enables restaurant operators that are leveraging OneDataSource and Wizardline to manage their business, further monetize this investment by introducing personalized promotions that help them attract new and lapsed customers, as well as increase the frequency of existing customers while ensuring each transaction is profitable. If you’re interested in chatting about these partnerships, shoot me a message. I’d love to connect. https://lnkd.in/g9fE_zqw

Between sit-down and fast food, quick service restaurants are changing the game. Read CBC's latest trend report to learn more about the evolving commercial real estate industry. If you're looking to invest in a QSR franchise, here's what to expect! #coldwellbankercommercial #cbcrv

BurgerFi has been sold to the owner of Savvy Sliders By Lisa Jennings Restaurant Business Online The fast-casual BurgerFi chain has a new owner. After being bought out of bankruptcy by lender TREW Capital Management in October, the better-burger concept on Friday was acquired by Happy Asker, CEO and co-founder of the Michigan-based parent company of Savvy Sliders, Fat Boy's Pizza - Size Matters and Happy's Pizza. Terms of the deal were not disclosed, and Asker declined to offer details, saying a more formal announcement will come next week. But he confirmed that BurgerFi would become a sister brand of the growing Savvy Sliders and other franchise brands within the group. BurgerFi and now-former sister brand Anthony's Coal Fired Pizza were owned by Fort Lauderdale, Florida-based BurgerFi International Inc., or BFI, which was a public company created through a reverse merger with a special purpose acquisition company, or SPAC, in 2020. It was a rocky few years for BFI, which saw sales plummet during that period, despite turnaround efforts. BFI defaulted on its credit agreement last year and filed for Chapter 11 bankruptcy in September. The company also shuttered a number of underperforming units, leaving BurgerFi with 93 locations when it was acquired by TREW in a bankruptcy auction for a $10 million credit bid. Of those, 17 are company-owned and 76 are franchised. TREW, which is led by former Famous Dave's of America Dave’s CEO Jeff Crivello, also made a credit bid of $44 million for the mostly company-owned Anthony’s, which was very quickly sold again earlier this month to Florida Burger Inc., whose principal is @Kuljeet Singh, a franchisee of Round Table Pizza and Burger King. Savvy Sliders was listed on this year’s Restaurant Business Future 50 list as an emerging brand, with systemwide sales of about $47 million in 2023. https://lnkd.in/ea9ns59P

Working with restaurants in the franchise industry, we often view business operations with a keen eye for detail - spotting trends, tracing patterns, and understanding market dynamics. It's no secret that the restaurant industry, like many, has been dealt severe blows over the last four years due to the pandemic, drastic customer changes, and most recently, rampant inflation. And it seems that even the most enduring brands are not immune - the latest to be ensnared in these challenges is Red Lobster. Red Lobster, a fixture in the American dining scene for decades, is reportedly on the brink of filing for Chapter 11 bankruptcy protection. This comes after a tumultuous period in which the seafood chain was forced to shutter almost a hundred of its locations and auction off assets amidst crushing financial strain. Thai Union Group, the majority owner, is said to be racing to offload its stake in the struggling chain. But Red Lobster isn't taking this lying down. The appointment of Jonathan Tibus, as the new CEO, is a strategic move designed to steady the ship. Tibus, known for his expertise in steering distressed restaurant chains, could be pivotal in Red Lobster's fight for survival. A Chapter 11 filing may provide an avenue for renegotiating leases and contracts with creditors, wiping off debt, and ultimately allowing the chain to regain its footing. Yet, this struggle is not unique to Red Lobster. It's unfortunately becoming a familiar narrative for many in the restaurant industry, who have been grappling with the fallout from COVID-19, significant customer changes, and spiraling inflation. Red Lobster's recent crisis further underscores the fragility and vulnerability of the sector. These are challenging times, but they're also times of transformation. As we navigate these unsure waters together, let's discuss what this shake-up means for the franchise industry at large. Do you believe this is a temporary stumble or are we witnessing a tectonic shift in the sector? #restaurants #franchise #franchising