Jobs in Wales at risk as TGI Fridays UK operator enters administration
The British operator of TGI Fridays has gone into administration, putting the future of 87 restaurants, including important sites in Wales, in uncertainty. This decision follows Hostmore's urgent efforts to sell its restaurant chain across the UK.
Recently, Teneo has brought in administrators following the failure of attempts to purchase the US-based parent company earlier this month. This setback has raised concerns about the future of the much-loved American-inspired restaurant chain.
Some of the impacted locations include well-known spots in Wales, like Swansea, Cardiff, and Newport. The employees are now dealing with a sense of uncertainty about their future.
Hostmore is optimistic about finalizing the sale of its UK restaurant chain by the end of September. Successfully completing this sale could preserve the TGI Fridays brand in the UK and help save around 4,500 jobs. However, the company has warned that it doesn't anticipate gaining much monetary return from the sale, which could lead to financial losses for creditors and banks.
It's unclear if a buyer will step up to purchase the whole chain or just specific parts. This brings up worries that some of the 87 branches in the UK might close down. TGI Fridays, which made its debut in the UK back in 1986 in Birmingham, has become a well-known presence in towns and cities across the country.
At the moment, the restaurants are still running as they normally do while the administrative procedures take place. The downfall of the hospitality company listed in London happened after their plans to merge with the US chain TGI Fridays Inc. for £177 million fell through. This merger aimed to form a bigger company that would stay listed in London, but it was scrapped due to a management shift that would have stopped Hostmore from earning royalties from the TGI Fridays brand.
Hostmore is facing serious financial challenges due to a 12% decline in sales this year compared to last year. This drop has been linked to unexpected warm weather and a lack of consumer spending. As a result, the company's stock price fell dramatically by over 90% after the news was released, resulting in its suspension from the London Stock Exchange.
Hostmore's short time as a publicly traded company has been marked by challenges since it launched in November 2021. The company’s stock, which opened at 147p, has seen a steep drop caused by profit alerts, rising debts, and restaurants that aren't performing well.
Russ Mould, the investment director at AJ Bell, commented that the failure of Hostmore's growth strategy is a major setback, indicating that shareholders may be left with little or no value. He pointed out that the acquisition in the US would have greatly expanded Hostmore's operations and established a strong foothold in the American market, allowing the company to break free from a current restrictive franchise agreement.
Susannah Streeter, who leads the money and markets division at Hargreaves Lansdown, pointed out that the brand has a real chance of continuing to exist due to its presence in more than 50 countries and a dedicated customer following. Nevertheless, she mentioned that a new owner might have to cut down on the number of stores in the UK, concentrating on thriving locations such as Leicester Square in London.
TGI Fridays started in New York in 1965, thanks to Alan Stillman. It quickly gained popularity for its distinctive "Thank God It’s Friday" vibe and impressive bartending skills. In the mid-1980s, the brand made its way to the UK, introducing its American-style decor and menu to a fresh crowd.
As the administration process moves forward, the complete list of UK stores facing potential closure features:
The future of TGI Fridays in the UK is unclear, causing concern among both customers and staff. Although the brand has faced various difficulties over the years, it's uncertain whether it can navigate this new hurdle and keep delighting British diners with its classic American dishes.
Carmarthenshire Reaches 60% Gigabit Connectivity
The countryside area of Carmarthenshire in Wales is proudly marking an important success in its efforts to enhance digital connectivity. The region has achieved 60% access to gigabit broadband, a remarkable increase from only 25% in 2021. This milestone represents a crucial advancement in the area's journey towards a more connected digital future.
The Digital Infrastructure Programme of the Swansea Bay City Deal has played a crucial role in advancing this initiative, particularly by improving broadband access in areas that are typically difficult to reach. Much of this success can be credited to the county's Digital Champions, who have diligently collaborated with various stakeholders. These include alternative network providers like Voneus and WeFibre, as well as major providers such as Openreach and local communities. Their hard work has been essential in highlighting the advantages of high-speed internet and guiding people on how to obtain it.
Carmarthenshire is dedicated to its principle of "connecting through cooperation," which plays a key role in its overall strategy. By enhancing digital infrastructure, the county seeks to provide dependable connectivity for everyone, fostering social interaction and economic development.
Cllr Hazel Evans, the Cabinet Member responsible for Regeneration, Leisure, Culture, and Tourism, commended the accomplishment: “This marks a significant advancement for a county with many remote regions. It’s uplifting to witness an increasing number of individuals gaining access to the enhanced connectivity essential for social and economic growth. I believe we will continue to push forward to create a fully digital and inclusive Carmarthenshire in the future.”
This accomplishment not only brings immediate social and economic advantages but also paves the way for additional investments, especially in industries such as tourism and agriculture, which can greatly benefit from new technologies.
The county's achievements have been supported by a strong partnership with the UK Government's Department for Science, Innovation and Technology (DSIT) and the Welsh Government. These collaborations have opened up vital funding opportunities and have enabled local communities to push for improved digital infrastructure in their regions.
Carmarthenshire County Council has been essential in achieving this goal. Various key players, including community and county councillors, along with the planning, infrastructure, and highways teams, have all contributed to the successful implementation of broadband initiatives.
Simon Davies, who leads Economic Development and Property at Carmarthenshire County Council, praised the teamwork involved: "Achieving 60% coverage of full fibre in the county is an incredible accomplishment. This success couldn’t have happened without the hard work of our Digital Champions and the teamwork among various internal departments. By collaborating closely with the Digital Infrastructure Team, I’m confident that we will keep raising that percentage to make sure everyone gets access."
Carmarthenshire is making significant strides in its push for digital inclusion. With 60% of the area now having access to gigabit internet, the team behind the Digital Infrastructure Programme is setting their sights even higher. They are partnering with UK Government initiatives like Project Gigabit to enhance connectivity. The objective is to establish Carmarthenshire as a top digital county, fostering growth and success for its businesses and communities.
Wales' Beer And Pub Industry Supports 44,000 Jobs
According to industry representatives, the beer and pub industry in Wales provides employment for 44,000 individuals, but it urgently requires support from the upcoming Budget to ensure that these jobs remain secure.
According to the British Beer and Pub Association (BBPA), these numbers show that individuals across the nation rely on this industry for employment and to earn a living.
However, even so, pubs typically earn only 12 pence on each pint of beer after accounting for taxes and expenses.
The BBPA is urging for lower business costs that have been skyrocketing. They believe the upcoming Budget should support the industry in its efforts to keep investing in both businesses and employees, ensuring it continues to serve as a welcoming space in communities nationwide.
Emma McClarkin, the CEO of the BBPA, stated: “Our breweries and pubs are providing opportunities for individuals across the nation to make a living, acquire new skills, and contribute to both local and national economic growth.”
"Many people, from bartenders to the farmers cultivating hops, depend on our cherished beer and pub industry for their jobs and sources of income."
“For the job market to thrive and for us to continue backing those positions, it's essential that our industry receives the assistance it requires to move forward.”
"We're calling on the government to support the British brewing and pub industry, which is vital to our communities. It’s essential to enable this sector to continue contributing to economic growth, job creation, investment, and social benefits, all while keeping the cost of a pint within reach for everyone."
The BBPA is urging the Government to consider lowering beer taxes in the next Budget, overhaul business rates, and commit to maintaining the 75% relief on business rates. This move would help pubs and breweries retain their workforce and create additional job opportunities.
If the upcoming Budget includes a 5% reduction in beer tax, it could create as many as 12,000 new jobs throughout the UK, particularly in pubs. This change would help counteract the negative impact of rising bar prices, which typically leads to a drop in consumer demand because people tend to be cautious about spending more. When fewer customers are buying drinks, it can result in pub closures and staff layoffs. By maintaining more reasonable prices for a pint, the industry can continue to grow and generate even more employment opportunities.
The industry is currently dealing with various challenges and regulations, including the introduction of high packaging taxes and the possibility of a smoking ban in beer gardens.
The industry is among the most heavily taxed in the UK, with taxes accounting for 40% of brewing revenue and a third of every pound spent in pubs going toward taxes.
The BBPA cautions that any further price hikes, following the inflationary challenges of recent years, could push numerous beer and pub establishments to the brink.
Council Refuses Blame For Range Store's Snub
This week, Pembrokeshire County Council has denied allegations appearing on social media that it influenced The Range's choice to not open a store in the old Wilko location in Haverfordwest.
This week, rumors spreading on Facebook indicated that the discount retailer backed out because of problems with parking fees at the nearby Perrots Road parking lot.
A representative from the council spoke about the issue on Wednesday, September 18, and told The Herald, “The rumor suggesting that The Range chose not to acquire the old Wilko store in Haverfordwest because of parking fees in the nearby Perrots Road car park is completely false. The council doesn't know how this rumor started.”
This statement is a reply to a surge of comments on social media, where many local residents shared their dissatisfaction and annoyance. Stephen Hughes kicked off the discussion with a post that said, “Range wanted to go to Wilko, but the council turned down free parking in Haverfordwest, which is simply outrageous.” His post attracted numerous responses, highlighting the increasing irritation within the community.
Chris Wilson expressed his belief that "the council appears intent on ruining Haverfordwest," while Julie McIntosh remarked, "Oh my goodness, we will never get them now."
These feelings reflect a wider discontent with how the Haverfordwest town center is currently situated.
The council has emphasized that The Range's choice was not influenced by parking regulations. The spokesperson stated, "Although The Range chose not to move forward, the Council is engaged in extensive talks with a potential tenant for the space and is eager to see the building back in use as soon as it can."
The discussions happening on social media point to ongoing worries about the town's shopping opportunities and the impact the council has on promoting or obstructing economic growth.
According to recent updates, The Range is set to grow in the UK by launching five new stores before Christmas. These new locations will be in Walkden, Cwmbran, Leamington Spa, Chelmsford, and Oswestry.
Furthermore, CDS Superstores, the parent company of The Range, has revealed its intention to reopen as many as 300 Wilko stores following its purchase of the brand. They plan to launch five prototype stores by Christmas 2024.
Even though Haverfordwest is no longer on the list, it’s uncertain how things will progress and if the potential tenant will introduce a fresh phase for the shopping environment in Haverfordwest.
