Fiesta Restaurant reports closure of 6 Pollo Tropical restaurants in south Texas
Fiesta Restaurant says, "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 $3.7M of restaurant sales and $1.2M of pre-tax restaurant-level operating losses, including $0.6M of depreciation expense, to results for the six months ended July 2, 2017. The closed restaurants contributed approximately $6.7M of restaurant sales and $2.2M of pre-tax restaurant-level operating losses, including $1M of depreciation expense and $0.4M of pre-opening costs, to results in 2016." Fiesta President and CEO 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."