Report: TGI Fridays to sell 247 units to franchisees

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TGI Fridays Inc., the brand that largely popularized casual dining in the United States, will look to refranchise its 247 company-owned locations and let franchisees operate the brand and carry the ball on a major remodeling effort. A report in the Wall Street Journal found that TGI Fridays also plans to sell all 63 of its corporate restaurants in the United Kingdom to franchisees. Even before this summer’s acquisition of TGI Fridays by private-equity firms Sentinel Capital Partners and TriArtisan Capital Partners, the restaurant brand had begun a major turnaround effort that included remodeling stores, revamping food offerings and expanding the offerings of alcoholic beverages. The reimaging initiative was a move away from Fridays’ original décor concept that included tchotchkes and bric-a-brac on the walls—and the “pieces of flair” on servers’ suspenders lampooned in the 1999 movie “Office Space.” Chief executive Nick Shepherd told the Wall Street Journal that the first remodeled TGI Fridays restaurant, a location in Nashville, Tenn., that was reimaged in July 2012, has experienced a 30-percent sales increase compared with before the reimage. “That came from guest counts, not price,” Shepherd was quoted as saying. “That allowed us to go to our franchisees and say, ‘This is what wins for our guests.’” Refranchising has re-emerged in popularity the past few years in the restaurant industry, as chains like Burger King moved to a nearly all-franchised model to create more predictable earnings and reduce costs, joining major brands like Applebee’s and Subway. Wendy’s announced a major refranchising deal last year to sell of more than 425 units in the United States, and this year the brand will refranchise all company-owned locations in Canada. In addition to its 247 company-owned locations set to be refranchised, TGI Fridays also has approximately 270 restaurants already operated by franchisees. Read more by clicking: http://online.wsj.com/articles/tgi-fridays-to-sell-most-of-its-u-s-company-owned-outlets-1411753893?mod=dist_smartbrief