TGI Fridays owner Hostmore scraps second cocktail bar brand after three years

The UK firm said the remaining 63rd+1st bar in Glasgow will shut down at the end of month.

Anna Wise
Monday 03 June 2024 12:45 BST
TGI Fridays owner Hostmore said its sales have waned this year (Lynne Cameron/PA)
TGI Fridays owner Hostmore said its sales have waned this year (Lynne Cameron/PA) (PA Archive)

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TGI Fridays owner Hostmore said its sales have waned this year, as the hospitality group confirmed the closure of its second cocktail bar and restaurant brand just three years after launch.

The UK firm said the remaining 63rd+1st bar in Glasgow will shut down at the end of month.

It follows three other venues in Cobham, Harrogate and Edinburgh being shut down as the group backtracked on the spin-off – which was not making it enough money.

The brand was launched in 2021 and took inspiration from TGI Fridays with a New York-influenced food and cocktails menu.

But the loss-making Hostmore has grappled with with weaker spending in recent years, leading it to take steps to cut costs and put its finances back on a strong footing.

It said getting rid of the brand, and therefore cutting out its operations and supply chain, would boost its earnings in the future.

Meanwhile, Hostmore, which has 85 TGI Fridays restaurants across the UK, revealed that sales over the year to mid-May were a tenth lower than the same period last year, on a like-for-like basis.

Nevertheless, earnings were slightly higher over the first four months of the year versus 2023.

The company previously said it was weighing up opportunities to shut down restaurants that were losing it money and had taken steps to improve the performance of 20 struggling sites.

Earlier this year, it agreed a deal with to merge with US-based TGI Fridays Inc, to create a larger firm which will remain listed in London.

On Monday, Hostmore said it had received interest from a number of lenders to provide financing for the new combined group, and it was currently working with one to agree a package of support.

The merger is expected to be completed before the end of September.

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