TGI Fridays, the restaurant chain, is to float on the London Stock Exchange later this year.
The chain has 87 restaurants, all of which are now back open after the relaxation of restrictions on indoor dining in Britain on Monday of this week.
“Fridays is a rejuvenated business with a strategy for sustainable growth and the opportunity for acceleration in the opportunity-rich casual dining market,” said Neil Johnson, the chairman of Electra.
“Fridays is emerging from lockdown a much stronger and more rounded business. Its market has been equally transformed as a result of the reduction in competitor supply – through the closure of an estimated 21%* of direct competitor restaurants. These factors combined give us confidence in Fridays’ ability to demonstrate further material value creation,” Johnson said.
Early indications of post reopening trading are very positive, Johnson said, with TGI Fridays’ Scottish stores recording sales 14% higher on a like-for-like (LFL) basis versus the same period of 2019 since April 26, despite being unable to serve alcohol and being obliged to close at 8pm.
The first three days of business following reopening across England and Wales on 17 May has shown LFL growth of 76% vs 2019, reflecting the release of pent-up demand following the national lockdown, Johnson claimed.
TGI Fridays is valued at £146.2mln on Electra’s books, up from £106.6mln at the end of September 2020.
The company believes that an American-themed restaurant run by Brits is just what the world is crying out for and has “a wide demographic appeal”.