Our next generation of budding leaders will miss out of one of Australia long-standing traditions linked to fast food buffets as Collins Foods (ASX: CFK) has made the difficult decision to close all off its Sizzler restaurants as a result of COVID-19.
While the brand has been under internal review since 2015 and no longer has the national presence it did 20 years ago, its last remaining 9 locations will be closed having delivered a notably slower recovery from the pandemic compared to Collins Foods other brands – KFC and Taco Bell.
“This has been a difficult decision for Collins Foods, especially given the impact it will have on our dedicated Sizzler employees and customers in Australia,” said Collins Foods’ CEO, Drew O’Malley.
“As a casual dining concept, Sizzler has been the brand in our portfolio most impacted by the COVID19 pandemic. The ongoing impact of COVID-19 on revenues has meant that unfortunately, these restaurants have not established a clear path to profitability in the foreseeable future.”
15 November 2020 is the slated date for the permanent closures should families wish to enjoy the nostalgic experience one last time. With it and the shift towards healthier alternative dining, a 29-year-old book closes for the same generation which also enjoyed Pizza Hut buffets many years ago.
For the 600 dedicated employees working under the Sizzler banner, redundancy packages have been offered alongside redeployment into the KFC and Taco Bill network which the Company is seeking to grow.
“Closing restaurants is not something we do often and not a decision we take lightly, especially for a brand as beloved as Sizzler which has been such an important part of the Collins Foods’ history,” said O’Malley.
Collins Foods will continue to operate it’s Sizzler stores in Asia where it holds a franchise license but the Company is not financially linked to any of the American locations where the brand originated.
The Sizzler restaurants closing are located in Queensland at Mermaid Beach, Loganholme, Toowoomba, Maroochydore and Caboolture; in Western Australia in Innaloo, Kelmscott and Morley;
and in New South Wales in Campbelltown.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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