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Fri 11th Oct 2024 - TGI Fridays to pay redundant staff, Revolution to become The Revel Collective |
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TGI Fridays agrees to pay staff after redundancy row: The restaurant group TGI Fridays has agreed to pay workers the money they are owed after being made redundant, despite initially refusing to do so. More than 1,000 staff lost their jobs this week when 35 TGI Fridays branches were shut after a private equity led rescue failed. The Times reports that workers were told they had been made redundant via a video call from head office with one hour’s notice. Others found out through social media platforms or turned up to work to find the restaurant padlocked, with their belongings still inside. About 2,400 jobs were saved in the buy-out of 51 TGI Fridays restaurants by Breal Capital and Calveton, which acquired D&D London last year, which owns top City restaurants including Coq D’Argent and Le Pont de la Tour. Staff who lost their jobs were told the company did “not have the funds available” to pay accrued holiday, their final unpaid wages, tips or redundancy. Staff were advised to apply to be reimbursed for unpaid wages, and wait six weeks. Angry former workers took to TikTok and WhatsApp chat groups to protest about the way they had been treated and union leaders threatened legal action. In an email to affected workers TGI Fridays said: “As a result of asset realisations made early in the administration, the company is in a position to make an early settlement of certain claims that would otherwise rank as preferential claims in the administration estate. As a consequence, the joint administrators intend to make funds available to pay the arrears of wages (including gratuities) and accrued holiday pay up to and including 7 October 2024. You should receive the payment into your bank account by Tuesday 15 October 2024.” Despite the pledge to pay money owed to them, former TGI Fridays’ workers remain dissatisfied. “They could have avoided all of this,” Oisin, 19, who worked his way up from a chef to kitchen team leader in three years, said. “I’m owed £1,300 and have barely enough money to get by. Two weeks ago we were told the company was in the process of being sold and not to worry. We were told our jobs were safe. Two weeks later, more than 1,000 jobs disappeared.”
Premium Club members to receive new searchable and segmented New Openings Database today: The next Propel New Openings Database will be sent to Premium Club members today (Friday, 11 October), at midday. The database will show the details of 216 site openings, including which company has opened a site or its plans to open one in the future. It will have details on what type of site it is and its location, and there will also be a website link to the businesses. The database is published on a monthly basis and Premium Club members will also receive a 11,941-word report on the 216 new additions to the database. The database is now segmented into seven categories – cafe bakery, casual dining, experiential leisure, fine dining, hotels, pubs and bars, and quick service restaurants – making it even easier for users to search. The database includes new openings in the quick service restaurant sector such as Yolk, opening in London’s Victoria, Benito’s, set to make its motorway debut in Leeds, and Tortilla, opening its third airport site at Glasgow airport. Premium Club members will also be sent the videos from this month’s Talent & Training Conference on Friday, 18 October, at 9am. Premium Club members also receive access to five other databases: the Turnover & Profits Blue Book, the Multi-Site Database, the UK Food and Beverage Franchisor Database, the UK Food and Beverage Franchisee Database and the Who’s Who of UK Hospitality. All Premium Clubs members will be offered a 20% discount on tickets to Propel paid-for events including Restaurant Marketer and Innovator (two days in January 2025) and Excellence in Pub Retail (May 2025). Operators that are Premium Club members are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club members receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club members will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club members also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. In this week’s Propel Premium, Katherine Doggrell, Propel’s editorial advisor, looks at Propel’s recent Talent & Training Conference and asks when it comes to a company’s culture, what happens when great minds don’t all think alike? Simon Anderson, food hall consultant at Ideas Food Consultancy and ex-chief operating officer at Market Halls, explains why no food halls have closed over the last year compared with closures seen in the restaurant and pub sectors. Ben Dixon, co-founder of Sona, looks at how AI can help bridge the gap between a challenging market and a need for growth. Meanwhile, Mark Wingett looks at the recent deal for Amber Taverns, which proves that the community pubs remain attractive to investors, and rescue of TGI Fridays, and where it goes from here under new ownership. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.
Revolution Bars Group to change its name to The Revel Collective: Revolution Bars Group, the operator of over 60 premium pubs and bars, trading mainly under the Revolucion de Cuba, Revolution and Peach Pub brands, is to change its name to The Revel Collective – to “reflect better the make-up of the group as it is today”. Trading in the group’s shares under the new company name will become effective at 8am today and under the new TIDM ticker at 8am on Monday 14 October 2024. Rob Pitcher, chief executive, said: “The change of name to The Revel Collective signals a fresh start and better reflects the businesses and brands within the group today which includes Peach Pubs and Founders & Co. Change is good, and always provides opportunity, especially now from the firmer platform from which the group is operating. Importantly, for our people it provides a new dawn and stability from the uncertainty which our restructuring caused. I am excited to be putting the new plans into action and to be beginning a new era in our journey where we can focus on our team and our guests, growing the business and delivering positive value for all stakeholders.”
Cooks Coffee hires new CFO: Cooks Coffee Company, owner of the Esquires brand, has hired Katherine Scott as its new chief financial officer, effective immediately. The company said that Scott joins the group with a track record in financial management, accounting, and strategic planning, bringing over 15 years of diverse experience across multiple industries to her new role. She has held senior financial roles with companies including AHC Limited, where she served as financial controller, managing all financial operations, statutory reporting, and audit processes. She has also worked with Immediate Media Company Ltd, Chestertons Global Ltd, Palm Lake Group, Transit Australia Group, Alpha Flights Services Pty Ltd, and LM Investment Management Ltd. Keith Jackson, executive chairman of Cooks Coffee, said: “We are excited to welcome Katherine Scott to the board having returned to the UK after time in Australia. Her extensive expertise in financial management, alongside her proven leadership skills and experience in financial modelling and cost-saving strategies, will greatly benefit our company. Katherine’s commitment to excellence and her broad financial acumen will play a crucial role in driving our growth and enhancing value for our stakeholders.”
Small businesses raise alarm at ‘costly’ employment reforms: Representatives of small businesses have reacted with alarm to Labour’s plans to overhaul workers’ rights. The Times reports that the Institute of Directors called the measures in the government’s Employment Rights Bill, which was published on Thursday, a “sledgehammer to crack a nut” which will “ultimately make it both riskier and more costly for businesses to employ staff at a time when business confidence is at its lowest point in two years”. The Federation of Small Businesses said the reforms, which include giving millions more people the right to claim unfair dismissal, were a “rushed job, clumsy, chaotic and poorly planned” that would “jeopardise job creation”. Reaction from large employers was more upbeat, with the CBI saying the government “deserves credit for its willingness to engage with businesses and unions on how to make a success of” the reforms. It was generally welcomed by trade unions, who traditionally fund the Labour Party, as well as bosses of companies including BT, Sainsbury’s and Centrica. Greene King, the pubs group, also welcomed the plans but Nick Mackenzie, its chief executive, said more details were needed on how changes to zero-hours contracts would be compatible with the seasonality of pub work. Representatives of smaller companies said they were concerned the costs of the reforms would fall disproportionately on employers who could least afford to shoulder them. Craig Beaumont, executive director of the FSB, said: “When the government wants and needs more growth and economic activity, the last thing it should be doing is making it more risky and expensive for small companies to take staff on. There will always be lots of roles in shiny offices in London but we also need employment in small companies in local communities around the country. The government must not forget the needs of small employers when it is implementing these rules.”
Domino’s warms to new menu: The chief executive of Domino’s Pizza said he hopes adding new items such as macaroni and cheese to the menu will boost sales in America after the takeaway chain failed to meet Wall Street’s sales. Russell Weiner said new products as well as Domino’s value offering were key to the retail strategy, citing the mac and cheese product launched in late September. “With mac and cheese and last year’s pepperoni stuffed cheesy bread, we’re bringing news to reignite our existing non-pizza platforms.” The Times reports Domino’s said that its US same-store sales increased 3% in the three months to 8 September, below expectations of a 3.6% rise, according to estimates compiled by London Stock Exchange Group. International same-store sales growth of 0.8% came in below expectations of 2.9%, leading the pizza chain to trim its annual global retail sales growth target to 6% from an earlier forecast of 7%. This week, Domino’s brought back its emergency pizza offer. The deal allows customers to redeem a free pizza on some online orders. Total revenues for the third quarter rose 5.1% to $1.1bn. Net income fell 0.5% to $146.9m. Jim Sanderson, analyst at Northcoast Research, said: “We believe the current strategy will drive market share growth.”
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