Spur Corporation which owns restaurants like Spur Steak Ranches, Panarottis, RocoMamas, amongst others, will be cutting salaries for the month of June.
In a statement, the group said it will be cutting salaries by 20% for all employees and will also see reduced work week.
“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.
“Fees for non-executive directors have also been reduced by 20% from 1 June.”
The group said that restaurant sales slowed by 46.7% in March 2020.
For the month of May, its management has granted franchisees a 40% discount in franchise fees. Marketing fees have been discounted by 75% for the Spur, Panarottis, and John Dory’s brands, and 50% for the remaining brands, according to the statement.
The government ordered other businesses and restaurants to reopen at the beginning of this month, however under strict regulations allowing restaurants to do food deliveries only.
“While the initial response from customers to the delivery food offering from the beginning of May has been favourable, it is too early to determine whether the current momentum will be sustained,” the group said.
“Competition is also expected to intensify as more national food chains reopen for delivery services.”
The group’s restaurants Spur Steak Ranches, Panarottis, RocoMamas, Panarottis Pizza Pasta, and John Dory’s are currently operating under level 4 regulations, and more are expected to reopen as the country moves to the slightly relaxed stage of the lockdown.