Carlson Buys Rest of TGI Friday’s UK Shares

Carlson, the travel, restaurant and hotel company, has purchased the rest of the shares in TGI Friday’s from their venture partner AAC Capital Partners, the private equity group. The group already operates TGI Friday’s restaurants around the world, but will now control the UK arm of the business through this agreement, which is valued at £60 million.

TGI Friday’s is now going to get an expansion in Britain, as Carlson says they are planning to invest £63.9 million (US$100 million) into the business. They are financing the share buyout and planning to open 16 more restaurants by 2015, adding to the 46-strong network. The company is also planning to expand their businesses around the world, targeting to open at least another 160 locations around the world overall during the next 5 years.

Nick Shepherd, the Carlson Restaurants president and chief executive, says that their focus is on high profile, high traffic areas. So far, they have started plans to open 2 new locations in London and Sheffield by October, he continued. This expansion may offer another 1,500-2,000 jobs across the nation during the next 5 years, he added.

The first TGI Friday’s was established in 1965 in New York, while the first British restaurant was opened in 1986 in Birmingham by Whitbread. Since buying the UK business in 2007, Carlson and AAC Capital Partners have spent over £11 million for opening new locations and refurbishing existing ones. Earnings have increased by more than double and like-for-like sales have risen over 5%.

Shepherd said that they are proud with the UK business’s performance and believe in the brand’s strength. They are enthusiastic about the initiative to expand in the UK and other key markets around the world, he added.