TGI Fridays flagship restaurant closes and ‘more hospitality venues remain extremely vulnerable’

TGI Fridays flagship restaurant in Leicester Square has closed for good leaving no further sites in central London, according to Popel Hospitality website.

At the end of 2015 TGI Fridays invested £3.5 million into the US themed restaurant which was described as “Fridays jewel in London’s crown” which could seat 260 people indoors and 60 outside.

The hospitality sector has been battered over the years and somehow has managed to remain resilient despite the economic challenges since Covid.

The Hospitality Market Monitor from CGA by NIQ Karl Chessell said, “Given all the challenges that were thrown at hospitality in 2024, stability in site numbers shows the impressive resilience of operators.

“However, we continue to see a rapid churn of sites as the sector adapts to consumers’ changing habits, while hundreds of net closures in the final quarter of the year emphasise that the burden of costs—made even heavier by the Autumn Budget—is threatening hospitality’s fragile renewal.

“The long-term confidence of leaders, entrepreneurs and investors is solid, but January has already brought further closures of venues that clung on through Christmas.

“With economic uncertainty lingering, many more hospitality venues remain extremely vulnerable.”

Earlier this week we reported that the UK’s nightlife and hospitality sector is in critical condition as businesses brace for a perfect storm of rising costs and reduced relief.

Despite a promising Golden Quarter, which offered a seasonal boost, cash reserves remain insufficient to weather the impending cost increases.

The Chancellor must act urgently to reinstate VAT relief, tier business rates, and adjust National Insurance thresholds to prevent the collapse of an industry central to the UK’s economic and cultural fabric.

While the Golden Quarter provided some relief, it has not equipped businesses with the financial buffer needed to face soaring energy prices, the looming rise in alcohol duty from February, and impending National Insurance employer contribution (NIC) hikes, circa 30-80k per business.

Compounding these challenges is the reduction in business rates relief, an effective 35% rise, all of which leaves businesses across the sector staring at a financial cliff edge this April. Taxes on nightlife venues are among the highest in Europe, often by some measure.

Michael Kill, CEO of the Night-Time Industries Association, warned, “The rhetoric from the Chancellor may focus on cost-saving measures, but this is meaningless for businesses already buckling under the strain of rising costs and taxation, who have already cost-saved to extremes. While the Golden Quarter offered a glimmer of recovery, it has not been enough to safeguard the future. Feedback from across the sector is clear: recovery will be short-lived. Without immediate intervention, the impending financial pressures will push many businesses over the edge.”