UK franchise of an American themed restaurant chain providing a high energy, fun environment with a wide demographic appeal

Investment valuations

As at  Mar 2020
Sep 2019
Mar 2019
Sep 2018
Investment valuations 119 143* 133* 126*

* Adjusted for additional investments made post year end.


Portfolio company performance

For the year ended 31 December LTM**
Sales (£m) 217.4 208.8 216.0
Operating Profit (£m) 17.6 14.2 22.3
EBITDA (£m) 27.7 25.3 33.3
Return on capital employed (%) 14.8% 13.1% 11.0%

**Based on last twelve months ("LTM") unaudited management accounts. 

Over the last two to three years the casual dining market has been challenging, due primarily to a combination of oversupply and rising people and property costs. Whilst not being immune to these pressures, TGI has continued to outperform its peers through a combination of sustainable growth and focus on meeting customers’ differentiated and experiential wishes. 

Robert Cook joined TGI as CEO in December 2019 with a remit to build and lead a new management team to build on its success and to take TGI to the next level of customer satisfaction and performance in adapting to the evolving market opportunity and customer expectations. Following the successful management transition, a number of initiatives to enhance product quality and consistency with a reinvigorated customer experience are being implemented. 

The Covid-19 pandemic resulted in all of TGI’s 87 stores being closed on 20 March 2020 before a partial resumption on 6 May for “click & collect” and deliveries from 24 stores with plans in place for a phased re-opening from July, or as early thereafter as is permitted. With an average footprint size of 6,860 sq ft, TGI’s stores are significantly larger than most restaurants and bars. As such, whilst peak capacity will be constrained in the short term by social distancing requirements, through implementation of existing plans to spread demand beyond the approximately 15% of the week when demand is close to capacity, we are confident in a successful resumption. 

The disruption to the market caused by Covid-19 on top of already challenging conditions will result in there being opportunities to acquire high quality sites for TGI stores. As a result, the two planned end of lease store closures later in 2020 have been accelerated and will not re-open. The two new store openings planned for H2 2020 have been rescheduled into H1 2021 and TGI will continue to actively pursue a sustainable store roll-out plan. 

TGI is a profitable and highly cash generative business that we have maintained with modest leverage given its challenging markets. As such, having entered the close-down period with £36 million cash we are confident that TGI will emerge strongly and successfully navigate the evolving constraints and opportunities presented by macro Covid-19 exit strategies.


Robert Cook


Based on multiple of earnings



December 2014





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