Sphera Publishes Another Announcement Regarding Covid-19 Impact

Sphera’s consolidated restaurant sales have dropped by approximately 33% YoY during the 1-22 March period and by approximately 75% YoY during the 16-22 March period.

Sphera Franchise Group published a document on the Bucharest Stock Exchange announcing that as a result of the gradual closing of the stores, Sphera’s consolidated restaurant sales have dropped by approximately 33% YoY during the 1-22 March period and by approximately 75% YoY during the 16-22 March period.

Romania

35 KFC stores have been initially closed starting 18 March, which have increased to 53 starting 23 March (after the Government decided on the closure of all commercial centers). As a result, as of 23 March, there are 29 KFC stores operating only through their Drive-Thru and Delivery channels (15 Drive-Thru, 8 Street, 6 Foodcourt).

All 23 Pizza Hut Dine-in stores have been closed since 18 March. As many as 15 out of the 22 Pizza Hut Delivery stores are operational.

All 10 Taco Bell stores have been closed since 18 March.

Italy – All 16 KFC Italy stores have been closed since 12 March.

Moldova – Both KFC restaurants are closed but are providing delivery services from one store.

Measures to contain the impact

As of 23 March, the key critical measures implemented or on course of implementation are the following:

Sending all restaurant staff in technical unemployment, which will be fully supported by the Romanian Government up to a level of 75% of the average national salary, effective 23 March.
Reducing the working schedule of the non-critical headquarter staff from 5 to 4 working days/week effective 23 March and sending them in technical unemployment starting 1 April.
Ongoing negotiations with all landlords in which Sphera stores are located with the purpose of reducing the rent expense. To this end, the Group has already obtained certificates of force majeure issued by the Romanian authorities will be used to either suspend or reduce the rent payments over the following period.
Ongoing negotiations with all other suppliers of services in order to suspend or significantly reduce the fees for their services rendered to Sphera Group.
Ongoing discussion with banks for increasing available liquidity to the Group, in the event the current crisis will extend for a longer period.

To read their previous announcement regarding the Covid-19 implications on Sphera’s operations click here.