TGI Friday's is on probation

LEISURE giant Whitbread is likely to ditch the TGI Friday's restaurant chain unless it performs significantly better.

Whitbread operates the 41-strong American-style hamburger chain as a franchise in Britain, but has made clear that its fate is in the balance unless its annual profits start to exceed £10m.

A Whitbread spokesman said: 'We believe it will begin to generate the right profits, but if it doesn't, then it is not a brand we would want to hang on to.'

The company is attempting to boost the brand by introducinga new menu as well as testing two mini-TGI Friday's restaurants in Bath and Harrogate.

Whitbread is not averse to culling underperforming brands. At its interim results last week, new boss Alan Parker scrapped Brewsters and Out & Out restaurant brands.

Two years ago, it sold the Pelican chain, including Cafe Rouge, at a huge loss.

Last week, Parker announced profits of £147m, a £800m asset sale and a return of up to £500m in cash to shareholders.