Hostmore jettisons 63rd+1st brand after less than four years
The sole remaining 63rd+1st in Glasgow will be closed by 30 June 2024, according to a trading update published by Hostmore in conjunction with its Annual General Meeting today (3 June).
It follows the recent closure of 63rd+1st’s original outpost in Cobham, Surrey, which opened in May 2021.
The 63rd+1st concept was developed by Hostmore as an offshoot of TGI Fridays, which it also owns, with the ambition of rolling it out across the UK.
It was inspired by the original Fridays founded in 1965 in Manhattan by salesman lan Stillman on the corner of 63rd Street and 1st Avenue and featured a New York-influenced food menu alongside an extensive drinks offering.
However, it only ever managed to grow to four sites, with other locations in Edinburgh and Harrogate, North Yorkshire, both of which have subsequently closed.
Hostmore says the removal of 63rd+1st’s supply chain and support function expense would ‘improve future earnings before interest, taxes, depreciation and amortisation (EBITDA) performance for the group’.
Year-to-date like-for-like sales for the 20 weeks ended 19 May 2024 were 10% lower versus the same period for 2023, according to the trading update.
However, the group says EBITDA continues to 'perform ahead of 2023', with the first four months to the end of April higher by £3.3m versus the same period for 2023.
It comes after Hostmore, which also owns fast casual brand Fridays and Go, reported a significant reduction in losses in its most recent financial results.
For the year ended 31 December 2023, the group reported a loss from operations of £11.1m, an improvement on the £95.8m loss posted in 2022.
In April this year Hostmore announced that it had reached an agreement for a proposed all-share acquisition of TGI Fridays in the US for a value of £177m, which is anticipated to complete in the third quarter of this year.
