Oliver’s widens net loss in HY2024, mulls smaller 'food to go' model
The brand said that the new Pheasants Nests stores are taking longer to generate strong sales.
Oliver’s Real Food recorded a net loss of over $825,000 for the half-year ended 31 December 2024, an increase of 238% compared to $244,393 from the same period in 2023, according to a recent bourse filing.
The group attributed the loss to its new Pheasants Nest restaurants, which became operational in December 2023, and are taking longer than expected to generate strong sales.
"The traffic through these service centres has been less than initially anticipated due to slower than expected changes in traffic patterns. As a result, we are currently in negotiation with the landlord with regard to ongoing costs at these stores," the group said.
Same store sales were down by 4% to $482,000, attributed to a one-time sales boost of approximately $250,000 at Wyong North from July to September 2023, when Oliver’s was the sole QSR operating at the location during service center renovations.
Gross margins were 63.22%, down slightly from 64% in the prior corresponding period.
Meanwhile, the group said the management has been developing an alternate store structure, based more on ‘Food to Go’, which essentially means a more streamlined menu, quicker service times, less personnel and equipment required, and most importantly significantly less space required than for the current store layout.
"We see this as the store for the future and should Oliver's embark on a ‘High Street’ model, this store structure would be ideal. We will be trialling such store in the next month or so and will advise the market as to its performance," the group said.
