MONTREAL — Sportscene Group Inc. has released third-quarter results, which continue to show the beneficial effects of the La Cage brand’s repositioning.
Sportscene’s management states it is satisfied with the improvements the extensive repositioning of the La Cage – Brasserie Sportive banner has generated so far in terms of customer traffic and network results.
During the 13-week period ending May 29, 2016, La Cage’s total network sales reached $27.5 million, down 4.5 per cent from the same period in 2015, due primarily to the fact that the network comprised two fewer units than in 2015.
Despite the fewer number of La Cage locations in operation, the brand’s total network sales remained relatively stable in the third quarter, amounting to $80.2 million, compared with $80.8 million in 2015.
“If we exclude the higher amounts invested in our repositioning, I wish to point out that the Cage restaurants showed a significant improvement in their profitability,” says Jean Bédard, president and CEO of Sportscene, adding that the plan to turn around the other-banner restaurants is progressing.
The first nine months of fiscal 2016 gave rise to an increase in average same-unit sales and an overall improvement in network profitability. The Sportscene team believes this demonstrates an offset of the brand’s dependence on seasonal and sporting cycles, reducing the relative weight of the “event” component in favour of foodservice.
Sportscene began repositioning the Le Cage brand in September of 2015 to reflect its new “Food, Beer, Sports” positioning. Strong sales growth generated to date by the implementation of the new Cage design has prompted the company to accelerate the modernization of the network.
