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Could Pie Face franchisees get rent reductions?

Sarah Stowe

Pie Face administrators Jirsch Sutherland are reportedly seeking rent reductions in a bid to help the fast food outlets to continue trading. Rents as high as 30 to 40 percent greater than market price have been cited as a possible cause for the financial difficulties that have brought the pie chain to voluntary administration.

According to Fairfax media’s Business Day, the administrators have sent a letter to landlords requesting “an immediate rental reduction”. Business Day reports the letter states “The Pie Face franchisee at this site needs to reduce their overall costs of operation and their rental is a major cost in their ongoing viability.”

It confirms that the franchisor is also cutting costs across its business, from production to support staff.

Jirsch Sutherland has apparently called for expressions of interest for the Pie Face business; last week Franchised Food Company’s Stan Gordon put his hand up as a possible buyer for the troubled chain.

Jirsch Sutherland has been contacted for comment but no information was available.

Overseas development is continuing with store openings in the last few weeks. The National UAE reports that the first of a planned 30 stores in the Emirates has opened in Abu Dhabi and the store is promoting the coffee and caf_ aspects of the hospitality offer.  

The Middle East expansion is centred on a partnership between Pie Face and Foodmark, part of the Landmark retail group.

Two stores which opened in Singapore in November were the pie brand’s initial Asian outlets.