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  • Writer's pictureRealFacts Editorial Team

TGI Fridays Expands into Hotels, Anticipates Growth Channel

TGI Fridays bar

TGI Fridays has embarked on a strategic initiative to capitalize on the growth potential of hotel locations, opening its latest restaurant inside the Hilton Garden Inn in Hollywood, California, as reported by Julie Littman of Hotel Dive. This move marks the chain's second collaboration with RLJ Lodging Trust, a prominent hotel investment company, which also hosts full-sized Fridays at a Courtyard Marriott near Chicago’s Midway International Airport.

Hotels are increasingly becoming a pivotal growth channel for TGI Fridays, with their restaurant venues within hotel properties consistently achieving higher sales volumes compared to traditional standalone locations. Chris Delvin, Chief Development Officer at TGI Fridays, highlighted the efficiency and cost-effectiveness of converting existing unbranded or underperforming hotel restaurants into vibrant TGI Fridays locations. This strategic shift allows for quicker deployment, taking only a few months from conversion to opening, as opposed to the longer timelines associated with new builds.

"There is massive white space for TGI Fridays within travel-driven locations, representing an incredible growth opportunity for our brand," commented Delvin in a press statement.

The Hilton Garden Inn Hollywood location, spanning 4,000 square feet and featuring an inviting outdoor patio with seating for 150 guests, was renovated in partnership with Aimbridge Hospitality, a leading global hotel management firm overseeing operations at the property.

TGI Fridays' expansion into non-traditional locations is part of a broader strategy to diversify and enhance its footprint in high-traffic areas such as airports and casinos. The chain's restaurant at Dallas Fort Worth International Airport, renovated last year, is poised to become the highest-grossing airport location in its portfolio.

The launch of the Hollywood location follows TGI Fridays' recent strategic maneuvers, including the closure of 36 underperforming corporate-owned restaurants and key executive appointments. The chain's menu overhaul introduced new entrees, appetizers, and salads, catering to evolving consumer preferences.

In a significant business move, TGI Fridays merged with Hostmore, its largest global franchisee, in a $220 million deal earlier this year, underscoring its commitment to expansion and operational enhancement.

Despite challenges, such as the decline in food and beverage revenues within the hotel sector in recent years, TGI Fridays remains optimistic about leveraging hotel partnerships to drive growth. Industry reports indicate a steady recovery trajectory post-pandemic, with opportunities emerging for innovative dining concepts within travel destinations.

TGI Fridays' proactive approach to integrating within hotel environments not only enhances guest experiences but also strengthens its market position, poised to capture new revenue streams and expand its customer base in key travel-driven markets.


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