Sizzler a drag as KFC, Taco Bell lifts Collins Foods’ revenue
The future of dine-in restaurant Sizzler appears bleak with its franchise owner revealing significant losses following government COVID-19 restrictions.
QLD Business
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The future of buffet-style chain Sizzler is up in the air after its fast food franchise owner Collins Foods revealed the restaurants were the most impacted by COVID-19.
Collins Foods revealed to the ASX on Thursday that its KFC and Taco Bell brands were performing well, however company chairman Robert Kaye the dine-in Sizzler chain was a drag on its results.
“Sizzler has been the brand in Collins Foods’ portfolio most impacted by the COVID-19 pandemic,” he said.
“Collins Foods continues to assess the non-core status of the Sizzler Australia business and closely monitor the pace of sales recovery.”
Iconic Mermaid Beach Sizzler restaurant space listed for lease
Sizzler’s same-store sales fell 5.6 per cent with revenue down 17 per cent to $38.3m.
The losses were driven by the closure of three stores and government restrictions imposed on dine-in restaurants.
Five Sizzler stores remain in Queensland as part of nine across Australia.
Mr Kaye said Collins had exited the Chinese market due to the impact of COVID-19, leaving royalties from 67 restaurants in Asia across Thailand and Japan.
He said KFC sales had increased 3.5 per cent to help deliver the company a total revenue increase of 8.9 per cent to $981.7m.
Mr Kaye said Taco Bell sales were recovering to close to pre-COVID-19 levels, with continued refinements to its menu and operations as it grows its Australian presence.
CKF last traded up 0.09 per cent to $10.58.