Some sad news for Sizzler fans today, with confirmation the country’s nine remaining restaurants will permanently close their doors next month.
Parent company Collins Foods made the sad announcement this morning, blaming COVID-19 for one of the main reasons for the closure.
“Of the three restaurant brands that Collins Foods operates, Sizzler has been hardest hit during the COVID-19 pandemic,” the company said in a statement issued to the ASX.
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“Based around a casual dining concept, and unlike Collins Foods’ KFC and Taco Bell restaurants, Sizzler revenues and earnings have been slow to recover from peak COVID-19 impacts, and the overall Sizzler business has continued to operate at a loss since the onset of the crisis.”
However, the company admitted the financial performance of its network of Sizzler Australia restaurants have been under constant review since 2015.
“Following a brand review, Collins Foods announced that Sizzler Australia was no longer considered to be core to the Company’s strategic growth,” the statement said.
“Since then and until this year, trading continued in stores with forward lease obligations and cash-flow positive earnings, while 19 Sizzler restaurants have been closed along the way”.
The Sizzler restaurants closing in Queensland by November 15 are located at Mermaid Beach on the Gold Coast, Loganholme, Toowoomba, Maroochydore and Caboolture.
While three stores at Innaloo, Kelmscott and Morley in Western Australia will shut up shop, along with the last remaining store at Campbelltown in New South Wales.
“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,” Collins Foods’ CEO Drew O’Malley said.
“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.”