TGI Fridays is coming back to an even harsher hospitality landscape

Last October, TGI Fridays was one of several nationwide chains that fell into administration. However, just eight months after this announcement, the American-style restaurant is ready to hit the hospitality scene again with a major rebrand.

It’s good news for fans Yet TGI Fridays’ comeback comes at a time when the hospitality industry is facing a great amount of turbulence — from the increase in employer National Insurance Contributions (NICs) to severe labour shortages and high staff turnover.

With a promise to bring back the “magic” of the chain, will TGI Fridays be able to navigate this difficult landscape?

TGI Fridays announces “ultimate comeback campaign”

TGI Fridays first opened its doors in Birmingham in 1986. With a mission to bring the US dining experience to Brits, the popular chain soon began expanding to other major locations across the country, including London, Aberdeen, Nottingham, Leeds, and Liverpool.

Unfortunately, like many other restaurant businesses, TGI Fridays struggled post-COVID and during the cost-of-living crisis, The chain previously tried to rebrand to “Fridays” in 2020, but it wasn’t enough to save it, and the brand entered administration in October 2024, announcing the closure of 35 of its restaurants. 

Thankfully, the business was then acquired by private equity firm, Breal Capital and Calveton UK, saving a significant number of its restaurants and workers. 

And last week, TGI Fridays CEO Julie McEwan announced plans to restructure the business. Dubbed the “ultimate comeback campaign”, the restaurant’s rebrand will include a new menu, better customisation for meals such as new topping choices and side swaps, and the reintroduction of candy floss machines and photo booths in select locations.

It will also involve updating its tech to integrate all systems and data, while restaurants will be categorised into hero bars, family destinations and party-led formats. Additionally, new ideas will be tested in both existing and new locations.

“Over the past eight months, we’ve restructured the business, invested in our team, and rebuilt our offer around quality, value and experience,” McEwan told Restaurant Online.

Is the TGI Fridays comeback too soon?

TGI Fridays’ enthusiastic comeback comes at a time when the hospitality industry feels like a battlefield of countless challenges, leading to just 70% of hospitality firms feeling optimistic about the future.

Inevitably, the cost-of-living crisis has led to a significant decrease in people dining out, thus affecting footfall and ultimately, profit margins. According to research by KPMG, eating out was the most common spending cut in 2024, with 72% of consumers eating in instead of out.

Lack of customers is one thing, but staff shortages have only rubbed salt in the wound, being  48% above pre-pandemic levels. Retaining staff is proving to be challenging too, as the average turnover rate for hospitality was 37.6% in 2024 — the highest out of all other sectors.

The UK’s latest regulations for its Skilled Worker visa have also made it difficult for businesses to hire international talent, with certain roles, including bakers, chefs and bar/restaurant management, no longer being eligible for the visa. 

Meanwhile, increases in staffing costs, such as the National Minimum Wage, caused the closure of 3,000 London bars and restaurants last year as firms struggled to pay workers. The British Institute of Innkeeping (Bll) also warned that over 80% of pubs will become unprofitable following the increase in employer NIC contributions.

What does TGI Fridays’ return say about modern hospitality?

TGI Fridays’ rebrand shows a clear need for digital transformation – transforming from an old chain into an innovative and modern establishment that embraces new technologies.

The Startups Workforce Report found that 22% of hospitality businesses report feeling pressured to adopt new technologies. TGI Fridays’ renewed focus on customisation and experience could be a learning curve for SMEs hoping to adopt a similar approach.

At a time when more people are cutting back on dining out, unique experiences can go a long way to ensure both customer attraction and retention.

After all, research from SevenRooms found that 72% of consumers plan to, or have already returned to a restaurant, after a unique experience. Many are also willing to pay extra for personalised experiences, including customised tasting menus (58%), curated appetiser platters (55%) and commemorative menus (51%).

“This is an exciting moment for TGI Fridays – a full brand reset that reinforces everything people have always loved about us,” McEwan continued. 

“TGI Fridays has a rich heritage of bold flavour, high-energy hospitality and unforgettable celebrations – and we’ve gone back to those roots to bring that magic into a new era.”