Sir Royalty Income Fund T.SRV.UN

Alternate Symbol(s): SIRZF

Consumer Cyclical Restaurants

SIR Royalty Income Fund (the Fund) holds investment in SIR Corp (SIR). The Funds' investment, SIR is engaged in the business of owning and operating full-service restaurants in Canada. SIR has concept restaurant brands, including Jack Astor’s Bar and Grill, Scaddabush Italian Kitchen & Bar, and Canyon Creek Chop House, signature restaurant brands, such as Reds Wine Tavern, Reds Midtown Tavern, Reds Square One, and The Loose Moose, which are used by SIR under a license agreement with SIR Royalty Limited Partnership (the Partnership. The Fund receives distribution income from its investment in the Partnership and interest income from the SIR Loan. The Fund indirectly participates in the revenues generated under the License and Royalty Agreement through its Investment in the Partnership.

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Sir Royalty Income Fund > If you bought at $1.50...

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Comment by BlueJay2020on Sep 13, 2021 4:04pm

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Post# 33850040

RE:RE:RE:RE:RE:RE:If you bought at $1.50...

Ah, a classic discussion of the economics of supply and demand. Is the demand for restaurants sufficiently inelastic to allow for menu price increases to flow through to us? I would say yes - but only in the short-term while there is a novelty factor for being in a restaurant. After that, at best I think it's a zero sum game. The increase in prices will be offset by fewer customers and/or customers deciding to forgo dessert or a second beer.

I don't think SIR discloses average cheque (unlike Tim Hortons) so we'll probably never find out what happens!

Robsopinion wrote:
Yes, but remember SIR also closed restaurants during the last 18 months.

the industry, across the board is increasing prices, all of the input costs for restaurants have increased, and with razor thin margins, price increases are the only option. Since we take our cut off top line, the top line sales, off fewer guests, and fewer stores, should be our saviour. Until the customers run out of money lol

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Advancing an underexplored area of the Yukon with the same geology as B.C’.s Golden Triangle