Adapt or Die: The Downfall of TGI Fridays UK and What We Can Learn
The recent news of the UK operator of TGI Fridays entering administration highlights the critical need for robust business planning. With 4,500 jobs at risk, this situation serves as a stark reminder of the potential consequences of inadequate strategic foresight.
Hostmore, the hospitality company that owns the chain, is grappling with significant debt and substantial losses. In an effort to stabilise the business, it has put 87 restaurants up for sale, aiming to complete a transaction by the end of September to preserve the brand and safeguard employment.
Despite assurances that operations are continuing as normal and that all stores remain open, Hostmore's recent statements reveal a troubling reality. The sales process is reportedly in an "advanced stage," yet the company anticipates that bids will fall short of covering its debts. This scenario underscores the risks associated with financial mismanagement and the lack of a proactive business strategy.
As Hostmore navigates this challenging landscape, the necessity for effective business planning becomes evident. A well-structured plan can help organisations anticipate market shifts, manage financial health, and respond effectively to crises. By strengthening their business planning processes, companies can better position themselves to weather economic uncertainties and emerge resilient in the face of adversity.
The Future of Business Success
In an era defined by rapid technological advancements, evolving consumer preferences, and constant market fluctuations, businesses can no longer afford to leave their futures to chance. As we head toward 2025, businesses MUST take a more proactive and strategic approach to ensure long-term success. At the core of this approach are two vital elements: Strategic Planning and Business Planning. These are not just corporate buzzwords but critical components that help businesses to thrive in unpredictable environments.
The key to successful strategic planning lies in setting a clear vision and developing a roadmap that not only reflects your company’s values and goals but also adapts to changing market conditions.
Businesses that want to excel must:
Analyse Market Trends: Businesses that stay ahead of the curve consistently monitor and respond to market trends. In a world where consumer behaviours and competitive landscapes change rapidly, the ability to adapt and pivot is critical. Understanding shifts in customer preferences, technological innovations, and industry developments allows businesses to pivot and maintain a competitive edge. Had TGI’s responded to the shifts in casual dining - the market, the consumer and their evolving needs (less gimmicks, more authenticity, quality and provenance) - could the collapse have been averted?
Be Agile: One of the most significant differentiators between businesses that merely survive and those that thrive is agility. In an uncertain environment, companies need to be adaptable, capable of evolving their strategies as conditions change. This agility should be built into the strategic planning process, allowing businesses to pivot and capitalise on new opportunities without losing momentum. Take TGI’s for example, could the closure of underperforming sites be shed, concentrating on the flagships and rebuilt with a newly defined Customer Value Proposition (CVP) to meet evolving customer needs.
Having Clear Objectives: Setting SMART (Specific, Measurable, Attainable, Relevant, and Time-bound) goals is a foundational step. These objectives serve as a compass, helping businesses maintain focus and measure progress. By outlining clear goals, companies ensure that every action they take is purposeful and aligned with broader organisational aims. What where the objectives of TGI’s other than heavily discounted offers to entice the weekend cinema crowds.
Perhaps the fate of TGI’s had already been set in motion with the cost of living; remote working; shifting retail consumer trend; and all the other economic factors impacting the hospitality industry. It’s a tough trading environment and some conflicting research on the outlook for the industry, but for many hospitality businesses weathering the storm, or closing the doors are sadly the only options.
What Lessons Can We learn?
Hospitality or not, by embracing strategic planning, businesses can create a solid foundation for long-term success. However, strategic planning alone is not enough. To bring that strategy to life, businesses must strengthen their business planning.
Turning Strategy into Action
Once a company has set a clear strategy, they need to ensure that it is actionable and sustainable. This is where robust business planning comes in. Effective business planning not only ensures that a company’s vision is achievable but also optimises its resources, systems, and processes to support growth while also considering operational excellence, the right resource allocation, i.e. the right people in the right roles, buying in resource and skills that don’t exits internally and taking risk management seriously - a SWOT of the business that is looked at and reviewed regularly would be the minimum.
Strengthening business planning is about turning strategy into action. It's about making sure that the organisation has the right people and systems in place to execute its strategic vision and stay on course for sustained growth.
Do it NOW!
The rapidly changing business landscape means that businesses cannot afford to take a passive approach to strategic planning. Whether you are a start-up looking to establish your footprint or a large corporation seeking to stay competitive, the time to invest in strategic and business planning is now, with an approach that aligns long-term vision with market realities. The businesses that succeed in 2025 and beyond will be those that have embraced these practices as core drivers of their success.
At Genoa Black, we believe that every business has the potential to excel with the right guidance and tools. As strategic partners, we are committed to helping businesses refine their strategies, optimise their operations, and prepare for a future where adaptability and resilience are key to sustained success.
For a free business health check on your strategic plans for 2025, get in touch with me today and let our experts help you navigate the road to success. stephanie@genoablack.com
Find out more on how to prepare your business to Thrive in 25.