Same store sales dropped 9.3 per cent in the 26 Sizzler restaurants operated by Collins Foods Group in the year to April 27, sending revenue down by the same percentage to $96 million.
Sizzler sales had dropped by 2.4 per cent in the previous year, and by four per cent in the year prior to that.
Collins Foods on Wednesday attributed the latest fall to the lack of menu price increases in 2013/14, and changes being made to the business.
It has recently remodelled one Sizzler restaurant to refresh the brand, and plans to roll out the new look in the year ahead.
“We believe that by giving Sizzler restaurants a new contemporary look and feel, and improving the dining experience for guests, that this will have a significant impact in contemporising the Sizzler brand and re-engaging with customers,” Collins Foods CEO, Kevin Perkins, said.
The company also operates 124 KFC stores in Queensland, where revenue grew by 3.5 per cent to $329 million in 2013/14, despite slower sales growth than the previous year.
Sales had picked up since March, it said, with growth of 1.5 per cent.
The company has also expanded its KFC business, acquiring 38 stores in Western Australia and four in the Northern Territory.
The cost of buying those new stores ate into its profit for the year to April 27, which dropped by 15 per cent to $14 million.
Collins Foods shares were up one cent at $2.07 at 1300 AEST.