TGI Fridays owner, Hostmore, has confirmed the closure of its second cocktail bar and restaurant brand just three years after its launch, due to dwindling sales this year.
The UK company announced that the remaining 63rd+1st bar in Glasgow will close its doors at the end of the month. This follows the closure of three other venues in Cobham, Harrogate and Edinburgh as the group retracted from the spin-off, which was not generating sufficient profits.
The brand, launched in 2021, drew inspiration from TGI Fridays with a menu influenced by New York-style food and cocktails. However, Hostmore, which has been operating at a loss, has struggled with reduced spending in recent years, prompting it to take measures to reduce costs and stabilise its financial situation.
The company believes that discontinuing the brand, thereby eliminating its operations and supply chain, will enhance its future earnings. Meanwhile, Hostmore, which operates 85 TGI Fridays restaurants across the UK, disclosed that sales for the year up to mid-May were a tenth lower than the same period last year, on a like-for-like basis.
Despite this, earnings were slightly higher over the first four months of the year compared to 2023. The company had previously indicated that it was considering closing restaurants that were not profitable and had taken steps to improve the performance of 20 underperforming sites.
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Earlier this year, it agreed to merge with US-based TGI Fridays Inc, forming a larger company that will continue to be listed in London. On Monday, Hostmore revealed that it had received interest from several lenders to provide financing for the newly merged group, and is currently in talks with one to finalise a support package. The merger is anticipated to be finalised before September ends.
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