Fiesta Restaurant Group, Inc. Provides Update on Company-Owned Restaurants Impacted by Hurricane Harvey in Texas & Hurricane ...
September 15 2017 - 9:00AM
Business Wire
Fiesta Restaurant Group, Inc. (“Fiesta” or the “Company”)
(NASDAQ:FRGI), parent company of the Pollo Tropical® and Taco
Cabana® fast casual restaurant brands, today provided an update of
the impact of Hurricane Harvey in Texas and Hurricane Irma in
Florida on Company-owned restaurants and also announced the closure
of the six remaining Pollo Tropical restaurants in south Texas.
Of the 43 Taco Cabana Company-owned restaurants located in the
Houston metropolitan area that closed, representing approximately
25% of the Company-owned Taco Cabana restaurant base, all but one
restaurant has reopened. No serious injuries to our team members
have been reported. The restaurants have resumed offering the full
menu with modified hours of operation. Taco Cabana lost
approximately 319 operating days as a result of Hurricane Harvey
through September 14, 2017.
While we are still assessing the full impact of Hurricane Irma
on our Pollo Tropical Company-owned restaurants, we do not believe
we have sustained significant damage to any of our restaurants and
no serious injuries to our team members have been reported. Of the
149 Pollo Tropical restaurants located in the state of Florida and
in the Atlanta metropolitan area, approximately 119 restaurants
have reopened, including 70 of 88 restaurants in our core south
Florida markets. We expect the majority of all remaining Pollo
Tropical restaurants to reopen in the coming days once power is
restored and supplies can be delivered. Some of the restaurants are
currently serving a modified menu, operating limited hours or may
be unable to offer both dine-in and drive-thru service. Pollo
Tropical lost approximately 719 operating days as a result of
Hurricane Irma through September 14, 2017.
The Company maintains comprehensive insurance coverage on all of
its restaurants including property, flood and business
interruption. The Company is working with its insurance providers
to assess the overall impact from the two storms and expects the
assessment to take several weeks to complete.
Today, we permanently closed the six remaining Pollo Tropical
Company-owned restaurant locations in south Texas, including two
Company-owned restaurants in Houston that have not reopened after
Hurricane Harvey and four Company-owned restaurants in San Antonio.
The decision to close these restaurants was due to ongoing
uncertainty in south Texas including the effects of Hurricane
Harvey and limited awareness of the Pollo Tropical brand. Up to two
of the closed south Texas restaurants may be rebranded as Taco
Cabana restaurants where Taco Cabana has strong brand affinity and
awareness. Where possible, employees impacted by restaurant
closures will be offered positions at nearby restaurants.
The six closed Pollo Tropical restaurants contributed
approximately $3.7 million of restaurant sales and $1.2 million of
pre-tax restaurant-level operating losses, including $0.6 million
of depreciation expense, to results for the six months ended July
2, 2017. The closed restaurants contributed approximately $6.7
million of restaurant sales and $2.2 million of pre-tax
restaurant-level operating losses, including $1.0 million of
depreciation expense and $0.4 million of pre-opening costs, to
results in 2016.
Fiesta President and Chief Executive Officer Rich Stockinger
said, “While these hurricanes have cost us a short-term loss of
business and some property damage, the operational and financial
opportunity we see resulting from our Renewal Plan remains intact.
We will be slightly delaying the start of our planned marketing
build as our markets recover from these storms but expect to resume
an impactful media plan before year-end. In doing so, we intend to
regain the positive momentum we were experiencing at Pollo prior to
Irma and reintroduce broadcast media at Taco.”
Mr. Stockinger continued, “I would also like to thank our team
members and supplier partners for their support in getting us back
up to full operation and their ongoing assistance in implementing
the Plan.”
After Hurricane Harvey struck, Taco Cabana served thousands of
meals to evacuees and first responders in Texas and Pollo Tropical
is in the process of doing the same in Florida. In addition,
through its non-profit Fiesta Family Foundation, the Company
continues to assist many of its own family members who have
personally suffered losses as a result of these storms.
About Fiesta Restaurant Group, Inc.
Fiesta Restaurant Group, Inc. is the parent company of the Pollo
Tropical and Taco Cabana restaurant brands. The brands specialize
in the operation of fast-casual, ethnic restaurants that offer
distinct and unique tropical and Mexican inspired flavors with
broad appeal at a compelling value. For more information about
Fiesta Restaurant Group, Inc., visit the corporate website at
www.frgi.com.
Forward-Looking Statements
Except for the historical information contained in this news
release, the matters addressed are forward-looking statements.
Forward-looking statements, written, oral or otherwise made,
represent Fiesta's expectation or belief concerning future events.
Without limiting the foregoing, these statements are often
identified by the words "may," "might," "believes," "thinks,"
"anticipates," "plans," "expects," "intends" or similar
expressions. In addition, expressions of Fiesta's strategies,
intentions or plans are also forward-looking statements. Such
statements reflect management's current views with respect to
future events and are subject to risks and uncertainties, both
known and unknown. You are cautioned not to place undue reliance on
these forward-looking statements as there are important factors
that could cause actual results to differ materially from those in
forward-looking statements, many of which are beyond Fiesta's
control. Investors are referred to the full discussion of risks and
uncertainties as included in Fiesta's filings with the Securities
and Exchange Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20170915005130/en/
Investor Relations:Fiesta Restaurant Group, Inc.Raphael Gross,
203-682-8253investors@frgi.com
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