News Briefs

TGI Fridays Inc. the owner and operator of 39 domestic restaurants in the  TGI Friday’s casual dining chain,  filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the Northern District of Texas. The Company expects to use the time and legal protections made available through the Chapter 11 restructuring process to allow the Company to explore strategic alternatives in order to ensure the long-term viability of the brand.

The TGI Fridays brand and related intellectual property are owned by TGI Fridays Franchisor, LLC as a result of a securitization agreement with a separate investor group. These entities are not included in the Chapter 11 process.

TGI Fridays Franchisor, LLC has franchised the brand to 56 franchisees in 41 countries. All of these franchise locations, both domestic and international, are independently owned and therefore not included in TGI Fridays Inc.’s Chapter 11 process. They are open and serving customers as usual.

To ensure continuity of service to franchisees, TGI Fridays Franchisor, LLC has negotiated a Transition Services Agreement (“TSA”) with – and provided interim funding to – TGI Fridays Inc. to maintain support services for franchisees while TGI Fridays Franchisor, LLC works to implement a new long-term support structure.

In addition to supporting franchise restaurants, TGI Fridays Inc. maintains operations across its corporate- owned restaurants in the U.S. The Company has secured a commitment for debtor-in-possession financing to support operations while proceeding through the Chapter 11 process. It also filed motions with the Bankruptcy Court that, when approved, will allow the Company to, among other things, continue its customer programs in the normal course. These motions are typical of the Chapter 11 process and are expected to be heard and approved in the first days of the case.

"The next steps announced today are difficult but necessary actions to protect the best interests of our stakeholders, including our domestic and international franchisees and our valued team members around the world," said Rohit Manocha, Executive Chairman of TGI Fridays Inc. "The primary driver of our financial challenges resulted from COVID-19 and our capital structure. This restructuring will allow our go- forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential."
 

A Look Back

TGI Fridays Inc.  is the latest brand to file voluntary Chapter 11 in 2024, including  Roti, Buca di Beppo, World of Beer, Melted Bar & Grill, Kuma's Corner and Tijuana Flats, to name a few. RL Investor Holdings LLC acquired the bankrupt Red Lobster restaurant chain in September.   

BurgerFi International, Inc., owner of the casual dining chain Anthony's Coal Fired Pizza & Wings and BurgerFi,  filed voluntary petitions for reorganization. On Oct. 31,  BurgerFi was sold out of bankruptcy to lender TREW Capital Management in a credit bid of $44 million.  TREW also purchased bankrupt Rubio's in August for $40 million. 

Encore, a global event technology and production services provider, confirmed today the launch of its pioneering ‘Overtime Savings Program’ in the United States, along with additional people-first programs to further support its ongoing workforce in a seasonal industry.

Powered by UKG’s payroll technology, this first-of-its-kind program aims to enhance financial wellness and stability for Encore’s frontline employees, many of whom work in markets that experience seasonal ebb and flow of business volumes.

With 12,000 team members providing event technology and production services at 2,200 hotels and conference venues in 20 countries, Encore faces the same challenges common in the hospitality industry. Seasonal fluctuations often result in workers’ hours varying from ample overtime during peak times to reduced schedules in off-season periods. This seasonality makes it difficult for workers to maintain consistent earnings and creates challenges for companies to retain talent in the off season.

“Encore has always believed its team members are the heart of our story. This people-first mindset motivates us to constantly evolve our team member experience and innovate around challenges, like the impact of seasonality, that the industry previously viewed as immutable,” said Ben Erwin, president and CEO of Encore.

In addition to the Overtime Savings Program, the company launched a Seasonal Leave of Absence Program, which offers team members the flexibility to take time off during slower seasons while retaining full benefits, accruing paid time off, and maintaining their tenure. This unique program enables employees to explore other work opportunities, pursue education, or focus on personal goals without sacrificing benefits or career progression. Both the Overtime Savings and Seasonal Leave of Absence Programs are active nationwide, with plans for global expansion.

“We established the program as another way to support our team members so that they can be at their best in delivering for our customers,” Erwin added. “With this innovation, they can better plan and save their premium overtime pay for periods of the year when they might not work as many hours. Providing this capability and funding a company-paid match for a portion of the savings should motivate financial wellness and enable them to continue to build their career with Encore. Team member reactions tell us we are onto something,” he said.

With a launch just after Labor Day, usage of the UKG Wallet™ increased tenfold compared to the prior year’s period. he company offered an initial savings match, similar to a 401k program incentive match, to reward healthy financial behavior.

“Financial stress is not a problem isolated to our industry, it’s a stressor for nearly everyone,” said Charlie Young, chief human resources officer at Encore. “Nearly 70% of Americans are living paycheck to paycheck¹ and Americans spent $9B in bank overdraft fees in 2023. The more we can do to reduce stress for our team members, the more focused they can be on our customers. We are successful in the event production business because of the unique combination of our technical expertise, hospitality mindset and ability to work under pressure and through challenges. Seasonal fluctuations are part of our business, but with a partner like UKG that understands every industry has unique challenges, we were able to innovate to support those unique needs to make our team members’ lives better.”

Cody Browne, a technical lead with five years of service for Encore in Las Vegas, said he will try the Overtime Savings program, in addition to accruing and saving his Paid Time Off, for the slow season in December in Las Vegas. He hopes the vacation time, in addition to the saved overtime funds, will afford him an out-of-state vacation to visit family. “I love that Encore is creating new opportunities, that’s one of the reasons I am interested in growing my career here,” he said.

Mark Shambura has joined Panera Bread as Chief Marketing Officer. Shambura will lead all aspects of marketing at Panera, including Brand Building, Digital & Loyalty, Product Strategy & Consumer Insights. An accomplished marketing leader with broad expertise in the restaurant industry, Mr. Shambura has previously held marketing leadership roles during pivotal growth periods for top brands including Chipotle, MOD Pizza, and most recently Papa Johns.

"Mark brings an impressive background building brands and leading marketing teams for fast-casual restaurants, and we’re thrilled to welcome him to Panera Bread,” said José Alberto Dueñas, Chief Executive Officer. “As Panera continues to evolve our brand, guided by listening to our guests, Mark’s depth of experience and ability will help drive our growth as a brand that serves great food you feel good about eating.”

Shambura previously served as CMO at Papa Johns, where he led a revitalization of the brand by enhancing its iconic “Better Ingredients, Better Pizza” platform, and developing a more modern, innovative omnichannel approach to transform how Papa Johns appealed to both new and loyal consumers. As Executive Director at Chipotle, Mr. Shambura guided the marketing function through periods of both sustained growth and transition, providing leadership over brand strategy, advertising, digital, social, events/sponsorships, promotions, and field marketing, including playing a key role in spearheading its “Real Ingredients” brand strategy.

“I’m proud to join the Panera Bread team and excited to build on the momentum of the brand's transformation as it continues to evolve in service of our guests,” Mr. Shambura said. “Panera propelled and cemented its position at the top of the fast casual restaurant segment through its promise of high-quality ingredients and freshly prepared food, and I’m thrilled to join a highly talented team to help shape its next chapter.”

Prior to his tenure in the restaurant industry, Mr. Shambura gained extensive marketing agency experience, working with a broad array of top global consumer brands for over a decade. Shambura will report directly to José Alberto Dueñas, Chief Executive Officer, and officially assumed the role of Chief Marketing Officer on July 29, 2024.

The United Kingdom-based Access Group has entered an agreement to acquire Paytronix, a provider in guest engagement for restaurants and convenience stores, from Boston-based Great Hill Partners. 

Terms of the deal were not disclosed. 

This investment represents one of Access Group’s most significant acquisitions in its 30-plus-year history and is a major step forward for the Group as it continues to focus on its product offering in the United States. Access Group, known as a provider of business management software to mid-market organisations in Europe, the US and Asia Pacific, hopes to add further support to the Paytronix team, helping to accelerate its growth and expand the footprint, bringing high-quality products and a digital guest engagement platform to more clients worldwide, helping them to excel in meeting ever-evolving customer demands. 

Guest Engagement Platform

Currently, the full Paytronix guest engagement platform includes numerous capabilities for online ordering, loyalty, omnichannel messaging, branded mobile apps, gift cards, third-party marketplace management, and payments. Leveraging data from transactions and personalized customer accounts, Paytronix creates targeted marketing campaigns that motivate increased interaction and spending throughout the customer journey. Paytronix will retain its name and plans to integrate its platform with a selection of Access products; the enhanced comprehensive suite of products and services will further improve the guest experience. 

Founded in 2001 by executive chairman Andrew Robbins, Paytronix is based in Newton, Mass. Its platform is deployed in over 50,000 sites across 1,800 brands and has processed more than 40bn consumer transactions. It boasts over 500 partnerships including many of the biggest names in the restaurant and convenience space, such as Google and Apple Pay, Toast, Square, DoorDash, UberEats, and many more. Their customers range from single operators to successful regional chains and large multi-unit enterprises like Panera, Qdoba, Nando’s and Five Guys. 

Paytronix was purchased by Boston-based Great Hill Partners in 2017, and they have been a valued accelerator of the company’s rapid growth. “We’ve had the privilege of working alongside Great Hill Partners to deliver our solutions and services to the innovative restaurant and convenience store brands that we proudly call clients,” said Paytronix CEO, Jeff Hindman. “The acquisition by The Access Group is the beginning of another stage in our growth, and I’m excited to say that from here we’re only going to build upon the service and capabilities that our clients know us for.  

“Joining a global force such as Access will further broaden the software solutions available to our current and future client base, enhancing the value we can offer and helping to solve everyday business challenges.” 

“Since our founding, we’ve worked to help clients build one-to-one interactions, enhance customer engagement and streamline operations for their businesses. Billions of transactions and millions of data-driven guest profiles later we realize our vision every time an AI-enhanced campaign is sent, which is nearly once every minute,” continued Hindman. “Joining a global force such as Access will further broaden the software solutions available to our current and future client base, enhancing the value we can offer and helping to solve everyday business challenges.” 

“We are incredibly proud of the progress and achievements made by Paytronix during our partnership. Over the past seven years, Paytronix has demonstrated remarkable growth and innovation, solidifying its position as a leader in guest engagements,” said Nick Cayer, Managing Director at Great Hill Partners. “We are confident that Paytronix will be well positioned under the Access umbrella, and we wish Jeff and the entire team success moving forward.” 

The Access Group has extensive experience in delivering world-class technology solutions to the hospitality sector across the UK, Europe and APAC with a suite of products covering front-of-house and operations, including the ResDiary online reservations management system, Wireless Social guest wi-fi and QikServe digital order and pay capabilities. The company’s leading software solutions also cover HR, payroll, learning, staff scheduling, procurement, EPoS, property management and accounting. 

FLYR, a technology company that unlocks freedom to innovate for the hospitality industry, announced a major upgrade to its popular business intelligence platform, FLYR Hospitality Insights. The new edition of FLYR Hospitality Insights is designed to revolutionize how hotel revenue managers, commercial teams, and management companies interact with and analyze their performance data.

The update maintains the customization, granularity, data freshness and automated report distribution capabilities that users of FLYR Hospitality Insights know and love, while adding new tools that provide unmatched flexibility and usability. FLYR Hospitality Insights now includes a range of advanced features to streamline data exploration, simplify reporting processes, and improve the overall user experience.

With over 500 data points and more than 20 visualization options, users can tailor reports and dashboards to meet unique business needs. Key innovations in this release include:

• Natural Language Query (NLQ): AI-powered features that allow users to engage with their data using plain language queries. This simplifies data exploration and analysis, enabling users to gain powerful insights into their business without requiring the skills of a data analyst.
• Excel-Style Workbooks: New functionality enabling custom calculations and data manipulation in a familiar format, allowing users to perform detailed analyses directly within the platform.
• Smart Data Summaries: Automated, qualitative narratives that provide context to data visualizations, offering deeper insights and enhancing communication of key metrics.
• Effortless Content Management: A revamped system for organizing, managing, and sharing reports more effectively across teams through more granular access controls for dashboards and folders.

"This update to FLYR Hospitality Insights represents a significant leap forward in how the hotel industry can harness and interpret data," said Jens Munch, Chief Strategy Officer, Hospitality, FLYR. "With new functionality like natural language querying, we are breaking down barriers for users, enabling them to ask complex questions and receive meaningful insights without needing advanced technical knowledge."

This news follows a period of monumental growth for FLYR. The company announced a $295 million capital raise in August to rebuild the foundation of travel technology. FLYR Hospitality became available on the Oracle Cloud Marketplace, was awarded an Emotional Footprint Award for hotel revenue management by Software Reviews, and established new deals with major hotel brands like Best Western Scandinavia, and The Boca Raton.

Bluefin, a provider of PCI-validated encryption and tokenization technologies that protect payments and sensitive data, and Datacap Systems, Inc., a hardware and processor-agnostic omnichannel payments provider, announced they are partnering to deliver PCI-Validated Point-to-Point Encryption (P2PE) Processing to hospitality businesses across the United States and Canada.

Datacap is Bluefin's preferred omnichannel payments provider to the hospitality industry for PCI-validated point-to-point encryption (P2PE), reducing a customer’s PCI DSS compliance burden by more than 70% and PCI control scope reduction at the point-of-sale environment by more than 90%. The partnership will help secure and protect payments for the hospitality industry which is highly vulnerable to data breaches: According to industry estimates, up to 31% of hospitality organizations have reported a data breach, and 89% have been affected more than once in a year.

"The Datacap team understands the critical importance of protecting payments and data from compromise across all channels," said Drew Monroe, Chief Revenue Officer at Bluefin. "By integrating Bluefin’s PCI-validated point-to-point encryption with Datacap’s industry-leading payments solutions we are empowering hospitality providers to benefit from enhanced security, streamlined compliance, and seamless payment experiences."

"Partnering with Bluefin allows Datacap to offer hospitality ISVs the highest level of security for their merchant’s transactions without compromising the user experience," said Justin Zeigler, Director of Product at Datacap. "With Bluefin’s PCI-validated P2PE, our partners can confidently focus on delivering exceptional guest experiences while reducing PCI DSS scope and compliance costs."

Merchants interested in PCI-Validated P2PE should contact their POS reseller to learn how Datacap and Bluefin can help reduce their PCI DSS compliance burden and PCI control scope.