The restaurant chain indicated that it has been struggling with reduced traffic at its outlets as well as closure of others due to the restrictions put in place to curb spread of the respiratory disease.
Java indicated that the programme will be available to branch employees who have completed four years of service.
Coffee chain Java is cutting its workforce through a voluntary exit programme as reduced revenue from the Covid-19 pandemic bites.
The restaurant chain indicated that it has been struggling with reduced traffic at its outlets as well as closure of others due to the restrictions put in place to curb spread of the respiratory disease.
“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.”
Java indicated that the programme will be available to branch employees who have completed four years of service, commissary staff who have completed three years as well as support and operations staff who have been with the firm for more than one and a half years.
In April, the coffee chain slashed employee compensation by up to 40 percent as the first set of restrictions implemented by the government, which included the closure of dine-in options for restaurants, hit the sector.
This was followed by restriction of movement and curfews which reduced the hours that restaurants could operate, as a result lowering revenues even further.
“From the beginning of the Covid-19 crisis, even as restrictions were eased and food and beverage businesses such as ours began to reopen their doors, demand has been materially lower than previous years’ levels and this will continue for a period of time,” said Java.
Employees whose applications will be approved will receive a half month salary for every year worked, one month pay in lieu of notice, an additional one and a half month pay and payment for unused leave days.
The company was on a bullish expansion streak before the pandemic, hitting a branch network of more than 70 as well as introducing new brands under its umbrella including Kukito. Besides Kukito and Java restaurants, the Java House Group also runs Planet Yogurt and 360 Degrees Pizza.
The restaurant segment was hard hit by Covid-19, with some of the international chains such as Subway, Pizza Hut, Hardee’s and others yet to reopen most branches.
