"We are responding to changes in consumer behaviour that have impacted the full-service restaurant industry, particularly in the GTA and Ontario markets, where the majority of our restaurants are located," said Peter Fowler, CEO of SIR Corp. "We recently completed the rollout of a major update to our Jack Astor's menu, with the introduction of eleven new, globally inspired bowls and salads. This is a direct response to evolving consumer trends towards more health-conscious options with an added boost of internationally inspired flavours. We are also working to expand market share in the growing takeout and delivery segment, through the expansion of our partnerships with delivery service providers and with the introduction of a special take-out kiosk at our Scaddabush in Oakville. We are also rolling out 'Service-Inspired Rewards', a new loyalty program and mobile application to further enhance our guest experience. We believe these measures will help us capitalize on changing consumer behaviour and grow sales." In the recent report of its financial reports for the year ending in late December 2019, SIR Royalty Income Fund noted that the Pooled Revenue was $284.3-million(Cdn), a decline of 5.3 percent compared to $300.1-million in the year ended December 31, 2018. Pooled Revenue for the fourth quarter was $67.5-million(Cdn), a decline of 7.5 percent compared to $72.9-million for the fourth quarter in 2018. A private company, SIR Corp. owns a portfolio of 60 restaurants in Canada. Its concept brands include Jack Astor's Bar & Grill with 38 locations, Scaddabush Italian Kitchen & Bar with ten locations and five Canyon Creek locations. SIR also operates one-of-a-kind ‘Signature’ brands including Reds Wine Tavern, Reds Midtown Tavern, Reds Square One and The Loose Moose. On January 1, 2019, one Scaddabush Italian Kitchen & Bar and one Reds restaurant, were added to the Royalty Pooled Restaurants and 56 restaurants are currently included in the SIR Royalty Pool. Jack Astor's, which accounted for approximately 67.5 percent of Pooled Revenue in Q4 2019, had a same-store-sales decline of 7.9 percent in the fourth quarter. Scaddabush had a same-store-sales decline of 1.4 percent in the quarter and Canyon Creek had a decline of 8.7 percent. The downtown Toronto Signature Restaurants had a same-store-sales decline of 1.4 percent in Q4 2019. The Signature Restaurants have been impacted by increased local competition in downtown Toronto. In 2018, SIR secured additional long-term financing in 2018 to fund new restaurant developments and renovations to existing restaurants. The company continues to assess changes in the marketplace, including economic conditions and consumer confidence and has adopted a more cautious stance toward new restaurant openings. The Scaddabush restaurant in the Mimico neighbourhood of Etobicoke was added to the Royalty Pool on January 1, 2020 and the new Scaddabush restaurant in Burlington is expected to be added to the Royalty Pool on January 1, 2021. It is SIR Corp’s tenth Scaddabush location.
SIR Corp., 5360 South Service Rd., Suite 200, Burlington, Ontario L7L 5L1 (905/681-2997 www.sircorp.com)