BL Premium reports that pizza chain Col’Cacchio, which is embroiled in a dispute with 18 franchisees over royalty fees, is to retrench head office employees as it faces an uncertain future because of the nationwide coronavirus lockdown.  

The group makes its money from franchise fees, but it was not charging royalty and marketing fees while restaurants were closed.  Col’Cacchio’s 18 franchisees, who have refused to pay royalty fees for the first two weeks of March when business was normal, say they cannot afford to pay fees as they borrowed money to pay staff and suppliers.  But Col’Cacchio said without fees, it lost 60% of March income.  Col’Cacchio MD Kinga Baranowska said she was “gutted” at letting staff go but was receiving no income.  The management group would not give the numbers of how many employees it will retrench.  Baranowska and marketing manager Greg Mommsen estimated that their 32 restaurants, mostly franchises, employed more than 1,000 people.  Mommsen added that they had been trying to help head office staff and franchisees access money from the Unemployment Insurance Fund, but to date none have been paid.

• Read the full original of the report in the above regard by Katharine Child at BusinessLive (paywall access only)

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