TGI Fridays operator Hostmore reduces losses to £25.5million after cutting costs

Hostmore, the operator of the popular restaurant chain TGI Fridays, has reported a narrowing of its losses for the past year after a cost-cutting drive as part of its recovery strategy.

The company described 2023 as a "transitional year" in which it made progress stabilising the business. It reported a drop in revenues up to December 31 of £190.7million, compared to £195.7million in 2022.

However, it reduced pre-tax losses to £25.5million from £108.3million the year before, thanks to substantial cost-cutting. Additionally, by deferring planned restaurant openings until the end of this current year, the business saved approximately £15million in capital expenditure.

Stephen Welker, chair of Hostmore, said: "2023 was a transitional year for Hostmore during which we successfully implemented a turnaround of the business.

"The turnaround reduced costs, deferred cash outlays for new store openings, and improved the operations of our existing stores, while introducing a revised capital allocation policy to focus on high ROI (return on investment) organic growth initiatives and prioritising the full repayment of our borrowings and initiating shareholder distributions."