TGI Fridays plans growth of five new openings per year

TGI Fridays plans to open approximately five new sites per year and take advantage of market conditions and the opportunities for "highly cost-effective new site acquisition".

This is according to a Stock Exchange updated filed by parent company Electra Private Equity. In terms of the 2021 market, consumer demand is anticipated to return to 2019 levels in 2021, while the casual dining market is expected to shrink by around 20%-30%.

"The combination of the improvements and developments being made by Fridays and the significant market supply correction gives TGI an exceptional opportunity to gain market share," the group said.

Although trading since March has been significantly disrupted by the pandemic, recent trading was "encouraging" , with management confident of the brand's ability to perform strongly as it emerges from the Covid-19 disruption.

Robert Cook was appointed chief executive of TGI Fridays last year, and the new management team has "rejuvenated the brand, improved the offerings and is adding new revenue streams to support the core restaurant product".

As well as initiatives such as healthier recipes and the group's click-and-collect service, the financial impact of which has been "delayed" due to the pandemic, "results to date and extensive consumer research indicate that the developments made are being well received by existing, returning and new customers".

Future strategic developments include the launch of complementary brand 63rd+1st in Cobham, Surrey, in January; the reinvigoration of restaurant cocktail bars; a pipeline of further recently acquired sites under both the Fridays and 63rd+1st brands; the opening of its first dark kitchen; and further potential brand extensions under development and review.

It is anticipated that TGI Fridays will close its financial year to December with revenues down around 40% on the prior year.