Spur Corporation – franchisor of household brands like Spur and RocoMamas has slashed all employees salaries by 20% as lockdown trading restrictions hamper the group’s revenue.
The company, in a statement to shareholders, said its restaurant sales for the period 16 to 31 March plunged by 75.7%.
“Approximately 40% of the group’s overhead costs (including marketing costs) are remuneration and employee-related. While all staff have received full salaries for April and May, the group will be implementing a reduced work week and commensurate 20% salary reduction for all employees from 1 June in order to preserve cash,” said the company.
“Fees for non-executive directors have also been reduced by 20% from 1 June.”
Government this month allowed restaurants to reopen – albeit as delivery only outlets – as part of its risk-adjusted strategy to reopen the economy.
Spur Corporation, said as of Sunday, 155 of its 559 restaurants in the country had reopened as delivery-only services; including 82 Spur Steak Ranches, 19 Panarottis, 47 RocoMamas and seven John Dory’s.
“Restaurants are also being reconfigured to allow access to third-party delivery drivers and to comply with social distancing requirements. The number of staff working in restaurants has also been limited.”
