Restaurant chain Java House plans to lay off part of its workforce, as revenue and profit slide through voluntary redundancy requests.
According to the Coffee Chain, Covid-19 restriction on the food and beverage (F&B) industry has led to low demand for their products.
“During the last few months we have looked at every aspect of cost reduction in the business, including re-negotiating rents, our procurement of raw material, our labour schedules, our utility costs, etc. and these are now moving towards a very low level in line with expected sales,” Java said in a communication to its employees.
“But unfortunately, the business is potentially over resourced at the current level of performance.”
Hence Java has had to make a difficult decision to offer the program to provide our staff the opportunity to receive a lump sum financial payment from the company allowing them to create options for themselves following the prolonged effects of Covid-19.”
The program is targeting staff in different branches, starting with staff who have completed at least 4 Years of service within the group, commissary staff who have completed at least 3 Years of service within the group and support and operations leadership staff who have completed at least 1.5 Years of service within the group.
Those who qualify will receive 15 days’ pay for every year worked in addition to one and a half months’ pay. The company will also cater for their medical bills until March 2021.
Java House owns the 360 Degrees Artisan Pizza, Kukito and Planet Yogurt food chain brands has a total of 77 stores in the region.