Famous Brands said in a voluntary trading update on Monday (4 May), that the majority of its restaurants have remained closed, with the exception of limited operations in some markets, leading to a marked drop-off in revenue.
This is in compliance with government-legislated lockdowns implemented across the group’s trading jurisdictions, namely South Africa (SA), the rest of Africa and the Middle East (AME), and the United Kingdom (UK).
The group’s brands include Steers, Wimpy, Debonairs, and Fishaways, among others.
“Group’s manufacturing and logistics operations have also been closed, with the exception of a small component of direct sales to the retail market and one manufacturing plant with essential-supplier status, Lamberts Bay Foods, which supplies potato products,” it said.
As a result, Famous Brands said it has “effectively generated negligible revenue for a period of five weeks”.
In South Africa, in terms of stage 4 regulations which came into effect on 1 May 2020 in SA, restaurants can now offer delivery-only services.
These services are confined to controlled trading hours between 09h00 and 19h00. All deliveries must be dispatched well in advance of 19h00, Famous Brands said.
“With effect from 1 May 2020, the group commenced reopening a limited number of restaurants for delivery-only services across a broad geographical spectrum in a phased programme.”
The Group said its leading brands will be the primary providers of this delivery-only service. These brands include Steers, Debonairs Pizza and Fishaways, and to a much smaller extent, Wimpy and Mugg & Bean.
Where practicable, the group said its signature brand offerings will trial delivery operations with limited geographical coverage.
“In terms of the supply chain operation, support to the brands’ franchise partners will be provided by the Logistics division; at this point it is not deemed necessary to bring Manufacturing
capability on line.
“While management is hopeful that these trading activities might provide a much-needed boost to revenue and morale, the viability of this limited delivery offering remains to be proved,” Famous Brands said.