Sales

TGI Fridays reports slight growth despite casual dining crunch

by XPRESS, 24 July 2018

Underlying sales increased by 5.2% across the period – a drop from 2016’s growth of 7.7%.

However earnings before interest, taxes, depreciation and amortization (EBITDA) remained steady on the previous year – rising slightly from £33.24m to £33.29m.

The US-style chain, which has operated in the UK for more than 30 years, opened three restaurants over the course of the year, and saw its turnover increase by almost £5m to £215m in total. Despite this the group recorded a pre-tax loss of £18m.

The growth, revealed in the company’s annual report, was heralded as a source of pride for chief executive Karen Forrester.

She said: “It’s been a tough environment for the casual dining sector in the past few years, and we believe that it is set to continue.

“We’re proud that against that backdrop our latest figures demonstrate a year of growth for us, with three new restaurant openings and significant investment in improving our website and app experience for our guests.”

According to reports by This is Money Forrester has been rewarded with a pay rise, despite a campaign against the company being organised by the union Unite.

The campaign has included strikes at a limited number of restaurants in protest to the company’s decision to offer 40% of credit card tips to back of house staff.

A TGI Fridays spokesperson said: “Our team members are a part of our Fridays family, and we care about them. We believe all our team members should be – and are – treated and paid fairly.

“100% of tips go, as they have always done, to our team members, and our tipping and pay policies are separate. Overall, the change to our tipping policy has had positive feedback from our Fridays Family.

“However, we are listening to the small minority of our team members who are unhappy with the changes and are collectively working to find a resolution.”

 

Article Credit: The Caterer