Collins Foods received that amount in JobKeeper subsidies from the Australian Government following a decline of more than 30 per cent in revenue in its Sizzler Australia division’s nine remaining restaurants early in the pandemic - the threshold for access to the Federal Government's stimulus program designed to keep people in jobs. Of the three restaurant brands that Collins Foods operates, Sizzler was hardest hit during the COVID-19 pandemic. Based around a casual dine-in concept, and unlike Collins Foods’ KFC and Taco Bell restaurants, Sizzler revenues and earnings were slow to recover from peak COVID-19 impacts, and the Sizzler business continued operating at a loss. After careful monitoring of performance during subsequent months, it became apparent that with reduced seating capacity and the inability to provide its signature buffets for the foreseeable future, the Sizzler business model faced insurmountable obstacles to re-attaining viability in Australia. Accordingly, the Board decided in October 2020 to close the remaining Sizzler restaurants in Australia over the following months.....

“Our additional decision, announced today, to return the initial $1.8 million in JobKeeper payments as outlined in our half-yearly results, is an extension of this approach, and in line with one of our corporate values of “Positive Impact”. We were also pleased to be able to redeploy over 90 Sizzler employees into our KFC and Taco Bell restaurants.

“We are fortunate that our other restaurant brands in Australia, KFC and Taco Bell, have successfully navigated this difficult period. Both brands have successfully adapted to contactless channels like drive-thru and delivery and facilitated strong overall sales growth for the first half of the financial year for the Company. And of course, we thank the Australian public for their continued support during these challenging times.”

DISC: I hold