The nine remaining Sizzler restaurants in Australia will permanently close with its parent company Collins Foods citing "peak COVID-19 impacts" as one of its primary reasons.
Five stores in Queensland, one in Campbelltown NSW, and three in suburban Perth will close by November 15.
Approximately 600 employees have been offered redundancy packages and Collins Foods says it will look to redeploy staff to its KFC and Taco Bell network.
"Of the three restaurant brands that Collins Foods operates, Sizzler has been hardest hit during the COVID-19 pandemic," the company said in a statement issued to the ASX this morning.
"As a casual dining concept, and unlike Collins Foods' KFC and Taco Bell restaurants, Sizzler revenues and earnings have been slow to recover from peak COVID-19 impacts."
The company said the financial performance of Sizzler had been under constant review since 2015.
The Sizzler network is "no longer considered to be core to the company's strategic growth.
The Sizzler restaurants closing are located in Queensland at Mermaid Beach, Loganholme, Toowoomba, Maroochydore and Caboolture; in Western Australia in Innaloo, Kelmscott and Morley; and in New South Wales in Campbelltown.
"This has been a difficult decision for Collins Foods, especially given the impact it will have on our dedicated Sizzler employees and customers in Australia," Collins Foods' CEO, Drew O'Malley said.
"As a casual dining concept, Sizzler has been the brand in our portfolio most impacted by the COVID19 pandemic. The ongoing impact of COVID-19 on revenues has meant that unfortunately, these restaurants have not established a clear path to profitability in the foreseeable future."
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