Losses for T&T’S Prestige Holdings climb

Continuous restrictive measures to control the spread of COVID-19 in trinidad and tobago resulted in restaurant management company, Prestige Holdings Limited (PHL) realising a bigger loss in the first six months of its current financial year than it did in the prior year.

The company, which manages restaurant brands in Trinidad and Tobago such as KFC, Pizza Hut, Subway, Starbucks and TGI Fridays, recorded a net loss of TT$17.48 million ($385.87 million) in the six months from December 1, 2020 to May 31, 2021. That was double the TT $8 million ($176.52 million) loss the entity recorded in the same period a year earlier.

Prestige Holdings’ financial year runs from December 1 to November 30. It also operates TGI Fridays in Jamaica.

The company is however starting to see a turnaround in sales at its restaurant locations, especially between March and May. Revenues in the period grew by 15 per cent to TT $157.52 million ($3.48 billion) for the quarter. This despite all in-house dining being limited for 15 days in April, all restaurants being closed in May, and with no uptick in customers throughout the carnival period with that event being put off as part of COVID-19 containment measures.

However, the company’s total sales during the longer six-month period, December 1, 2020 to May 31, 2021, were down by six per cent at TT $392.71 million as the limitations from the first quarter continued into the second quarter.

“These results reflect the considerable difficulties affecting our industry, and we expect 2021 will continue to be a difficult year for our company. We have entered the third quarter with the restrictions on all restaurant operations still in place and, while we are hopeful that this will end soon, there is no clear visibility as to when restrictions will be partially or completely removed. As a result, management has been engaged in a number of initiatives to reduce costs and further improve efficiencies.

He added that the company has placed a hold on all non-essential capital expenditure, including new restaurant construction, restaurant re-imaging and the development of its new distribution centre. Prior to the closure of the restaurant industry in April, Prestige Holdings was preparing to open a new KFC in Sangre Grande, Trinidad and Tobago. It was also in the process of constructing a new Starbucks. Both restaurants are expected to open when restrictions are lifted.