TGI FRIDAY's owner Hostmore's share price plummeted over 13 per cent yesterday after the restaurant operator posted subdued revenue versus prepandemic levels.

Hostmore, which also operates the cocktail bar brand 63rd+1st, said likefor-like revenue was six per cent lower than 2019 levels.

In a trading update for the 20 weeks ended 22 May, the hospitality chain said it had been impacted by "a more challenging consumer environment".

Consumer confidence had "significantly" weakened since Russia's invasion of Ukraine and the cost of living crunch, bosses said.

Hostmore made its debut on the London Stock Exchange last year, after the completion of a demerger from Electra Private Equity. Family restaurant brand TGI Friday's was also re-branded as Fridays last year.

Pressure on consumers meant the company was "taking a more prudent view" on trading for the rest of the year.

Like-for-like dine-in volumes are anticipated to reduce by as much as eight per cent for the rest of the 2022 financial year, as compared to 2019.

However, the company said "appropriate pricing adjustments, in line with broader sector announcements," would mitigate "approximately half" of the impact of the expected lower volumes.

"[Diners] are definitely spending well and spending more but we are seeing volume subduing midweek,"

Hostmore CEO Robert Cook told City A.M. yesterday morning. "Spend per head is higher than it has ever been," he added.

The company's core base of consumers were likely to be trying to protect savings for "the summer holiday they haven't had in three years," while also seeing other costs rise, Cook added.

Inflation currently sits at a forty-year high, hitting discretionary spend.

(c) 2022 City A.M., source Newspaper