TGI Fridays owner reports further sales decline

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TGI Fridays owner reports further sales decline

Related tags TGI Fridays Hostmore R200 Multi-site 63rd+1st

TGI Fridays owner Hostmore has reported a 3% decline in like-for-like (lfl) sales for the 22 weeks to 4 June 2023 – down from -1% in the first 16 weeks.

In a trading statement to accompany the group’s AGM today, the restaurant group reported a 1% decrease in total revenue for the year to date, compared to a 2% rise over the first 16 weeks.

The group, which also operates the 63rd​+1st​ and Fridays and Go brands, says that cost reduction initiatives announced in the spring are benefiting EBITDA, with further opportunities for savings being evaluated.

“Our focus continues to be on implementing high ROI organic growth initiatives and extending the lifetime value of our guests by adding further to the guest experience through our three pillars of quality, relevance and simplicity. This is expected to increase the number of annual repeat visits by our customers,” says Hostmore’s outgoing chairman Gavin Manson.

“With the revision to our capital allocation policy, to prioritise debt repayment and shareholder distributions, I am confident that this will ensure a reduction in net debt and an ongoing improvement in profitability.”

Manson will step down from the board today (7 June), with Stephen Welker becoming the new chairman. New CEO Julie McEwan and Helena Felthamm independent non-executive director) will join the board at the conclusion of the AGM later today. 

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