Singapore investor buys out TGI Fridays’ India stakeholders: Report

TGI Fridays’ Indian stakeholders Bistro Hospitality (75 percent) and TGI Fridays Inc (25 percent) have sold their stake in the restaurant chain to Singapore’s Universal Success Enterprises, The Economic Times reported.

Bistro’s Chief Executive Officer Rohan Jetley confirmed the development to ET and termed the deal a "strategic buyout".

Moneycontrol could not independently verify the report.

The sale, for an undisclosed amount, will not affect the chain’s India operations, the publication added. The chain has nine outlets in India, as per the TGI Fridays India website.

The news is unsurprising as the rollback of 10-15 percent input tax credit and competition from food delivery services led to the closure of three outlets in 2018. Bistro also said they would expand to Tier II cities, for which capital would be raised via private equity by diluting stake, the paper noted.

Universal Success operates the Outback Steakhouse restaurant chain in Singapore, Malaysia and the Philippines in Southeast Asia.

It is among many deep-pockets such as Sequoia Capital (Rebel Foods – Faasos, Behrouz Biryani), Gaja Capital (Massive Restaurants – Farzi Cafe), and LVMH’s L Catterton Asia (Impresario Entertainment & Hospitality – Smoke House Deli, Social) who have shown interest in India’s growing food industry.

As per a National Restaurants Association of India (NRAI) report, the foodservice sector is expected to grow to Rs 5.5 lakh crore by 2021 from over Rs 4 lakh crore in FY19.