TGI Friday’s on brink of collapse

📍Top line: The future of TGI Fridays UK is in jeopardy as Hostmore, the owner of its 87 UK locations, scrambles to sell the franchise following a failed merger with its US counterpart. With sales down 12% this year, administrators are on standby, putting 3,000 jobs at risk. Company debt is also piling up, with £35 million still owed to creditors like NatWest and HSBC, and a strict deadline looms at the end of the month for a potential buyer to step in.

The iconic TGI Fridays chain, known for its circus-inspired theme and flamboyant cocktail bartenders, first opened in the UK in 1986, with its popularity surging through the ‘90s and 2000s.

In recent years, TGI Fridays has struggled to compete with modern restaurant chains. Hostmore's shares have plummeted by over 90% since the company went public in 2021. Any sale of the UK business would likely mean Hostmore’s delisting from the London Stock Exchange.

If no buyer is found, Hostmore’s collapse could spell the end for one of the UK’s most recognisable restaurant brands!

Battle over Murdoch’s empire begins

📍Top line: A high-stakes legal battle over the future of Rupert Murdoch's media empire and a £14.9 billion family trust began in the US yesterday. The case centres around who will inherit control of Murdoch's vast holdings, including News Corp and Fox News, once the 93-year-old billionaire passes away.

Murdoch's three eldest children — Prudence, Elisabeth, and James — are reportedly opposing a plan that would grant their brother, Lachlan, significant control without interference. Murdoch allegedly sought to amend the trust, created in 1999, to ensure that Lachlan would take over the family business, sidelining his other children from key decision-making roles.

The case echoes themes from the hit show Succession, which is said to be inspired by the Murdoch family.

Elsewhere in business:

👪 Deloitte will introduce equal parental leave for all employees, allowing new fathers to take 26 weeks of fully paid leave, aligning with the current policy for new mothers. This decision aims to address gender disparities in the workplace and promote greater female representation in senior roles. Although nearly half of Deloitte's staff are women, only 28% hold partner positions.

🥗 Deliciously Ella, the healthy eating brand founded by wellness entrepreneur Ella Mills, has been acquired by the Swiss food company Hero Group, which also owns the British organic snacks brand Organix. While the financial details of the deal have not been disclosed, Mills and her husband Matthew, who were the majority shareholders, are expected to earn millions from the sale. 

Junior doctors accept major pay rise

📍Top line: The long-running dispute between junior doctors in England and the government has finally ended, with members of the British Medical Association (BMA) accepting a 22% pay rise over two years. This agreement follows 11 separate strikes during the 18-month conflict.

Health Secretary Wes Streeting, who made the offer in late July after Labour's election victory, expressed his satisfaction with the resolution, calling it a critical step in addressing healthcare system challenges, including waiting lists and broader reforms.

Although the pay rise settles the immediate dispute, the BMA warned of "consequences" if future pay does not continue to rise above inflation, reflecting ongoing concerns about real-term pay cuts over recent years.

💷 The pay deal includes a 4% backdated rise for 2023-24, an average 9% rise for the last financial year, and an 8% increase for 2024-25.  

Elsewhere in the economy:

📉 Retailers in London’s West End lost £220 million in unrealised sales in the first half of 2024, research shows. The scrapping of tax-free shopping for tourists has hit businesses hard, with losses expected to surpass 2023’s £400 million. Despite a rise in international visitors, spending has dropped 12%, prompting calls for the government to reinstate the policy and help the UK compete with EU countries which offer VAT refunds for purchases over a certain value.

🏠 UK house prices surged 0.8% this month to £370,759, driven by the Bank of England’s August interest rate cut, according to Rightmove. The average new seller asking price increased by £2,974, double the usual September rise. Agreed sales are up 27% year-on-year, reflecting strong pent-up demand. Supply also grew, with new listings up 14%.

Lifestyle and clothing company Ralph Lauren have opened applications for their Marketing internship in London. The successful candidate will aid the Ralph Lauren team in direct marketing, event planning, tourism initiatives, advertising, as well as result tracking and analysis. Apply now here!

Apple shares plummet after weak iPhone 16 pre-sales

📍Top line: Apple saw its valuation drop by more than $116 billion yesterday after analysts warned of weaker-than-expected demand for the new iPhone 16 series. Shares in the world’s most valuable company fell by 3.3% following a report by Ming-Chi Kuo, an analyst at TF International Securities, which highlighted disappointing first-weekend pre-order sales. Kuo estimated that iPhone 16 pre-orders were down 12.7% from last year’s iPhone 15 series, with around 37 million units sold compared to 42 million in 2023.

The iPhone 16, Apple’s latest flagship device, is set to feature advanced AI tools that can identify animals and plants, and locate restaurants by simply pointing the camera. However, the much-anticipated Apple Intelligence AI system, touted as a key feature, won’t fully launch until 2025 in most markets. A limited "beta" version will roll out in the US in the coming weeks, followed by the UK in December.

The delayed AI release may be dampening consumer excitement, particularly for the iPhone 16 Pro models, which were expected to drive significant sales. "The major selling point, Apple Intelligence, is not available at launch," Kuo said.

Elsewhere in tech

📦 Amazon has announced a strict return-to-office policy requiring staff to be in the office five days a week starting next year, one of the toughest stances among major tech companies. CEO Andy Jassy explained in a memo that the decision is aimed at strengthening collaboration and company culture, emphasizing that pre-pandemic flexibility regarding remote work will no longer be assumed. 

🔌 The climate claims of Big Tech firms are under scrutiny as AI's energy demands soar. Emissions from Google, Microsoft, Meta, and Apple's data centres are reportedly 662% higher than forecasted from 2020 to 2022, according to the Guardian.

🧑‍🎓 UK universities are calling for higher tuition fees and increased government funding to tackle a growing financial deficit, according to a group representing 141 institutions. Currently capped at £9,250, fees per non-international student “would be in the region of £12,000-£13,000” if investment had kept up with inflation according to the Office for Students!

🧑‍⚖️ Disgraced BBC presenter Huw Edwards has avoided jail despite admitting to charges of making indecent images of children. The former newsreader was given a suspended six-month prison sentence after WhatsApp exchanges with a convicted sex offender were heard in court. A BBC spokesperson said that Edwards had “betrayed the trust” of the corporation and audiences. 

🌊 A US Coast Guard hearing has revealed that one of the last messages sent by the crew of the Titan submersible before its fatal implosion was "all good here". This message was part of the final communications between the Titan and its support ship, shortly before they lost contact.