Article Excerpt:
TWST: We would like to begin with a brief historical sketch of SIR Corp. and the SIR Royalty Income Fund and a picture of things as they are now.Mr. Fowler: SIR Corp. or 'SIR' is a privately held company that was formed as an amalgamation of a series of restaurant groups in 1992, culminating with the final group of restaurants in 1995. We are now sitting with approximately 39 restaurants open and operating. We have 10 concepts within that framework, our largest being Jack Astor's, and we have a series of one-off restaurants in downtown Toronto, known as our signature group. We also have multi-unit concepts: Canyon Creek and Alice Fazooli's. Trademarks related to the concept and signature brands noted above are used by SIR under a license agreement with SIR Royalty Limited Partnership in consideration for a royalty, payable by SIR to the Partnership, equal to 6% of the revenue of the 36 restaurants currently included in the royalty pool. The Fund is a royalty trust governed by the laws of Ontario that receives distribution income from its investment in the SIR Royalty Limited Partnership and interest income from the SIR loan. We completed the initial public offering of the SIR Royalty Income Fund in October 2004.
TWST: Would you describe a couple of the key concepts?
Mr. Fowler: The major concept is Jack Astor's, which is in the casual
theme segment. We have very high average sales, running around $74,000 a
week, in that concept. There are 23 of these restaurants. We then have
five Canyon Creek Chop Houses, which is a casual dinner house concept
with a menu geared around steaks, chops and pastas, targeted at the 35
plus age group. Then we have five Alice Fazooli's, which is our other
concept that has been around since 1992, and it is an Italian menu based
concept.
Tickers included in this excerpt: SRV:TSX
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