I will be interested to see how the revenue holds up once government support is reduced. If the business is down 16% what will happen when job keeper and seeker are wound back?
Also, a small positive for the franchisor in these lease negotiations. They maybe touting positive outcomes. But the devil is in the details. Landlord are generally very smart. I am seeing many shopping centre deals where the tenant is offered say 3 months of base rent only free or waived in exchange for extending the lease by say 2 years. This in effect locks the franchisee in for a longer time period.
IMO we will see more store closures and a continuation in the reduction in revenue.
RFG Price at posting:
7.2¢ Sentiment: Sell Disclosure: Not Held
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