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.<\/p>\n
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).<\/p>\n
The group’s brands include Steers, Wimpy, Debonairs, and Fishaways, among others.<\/p>\n
“Group\u2019s 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.<\/p>\n
As a result, Famous Brands said it has “effectively generated negligible revenue for a period of five weeks”.<\/p>\n
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.<\/p>\n
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.<\/p>\n
“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.”<\/p>\n
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.<\/p>\n
Where practicable, the group said its signature brand offerings will trial delivery operations with limited geographical coverage.<\/p>\n
“In terms of the supply chain operation, support to the brands\u2019 franchise partners will be provided by the Logistics division; at this point it is not deemed necessary to bring Manufacturing
\ncapability on line.<\/p>\n
“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.<\/p>\n