SIR Royalty Limited Partnership to Receive 6% Royalty Payment from Renegade Chicken Operating out of Jack Astor's

BURLINGTON, ON, Jan. 28, 2022 /CNW/ - SIR Royalty Income Fund (TSX: SRV.UN) ("the Fund") today announced that the independent Fund Trustees have provided approval to SIR Corp. ("SIR") to operate Renegade Chicken take-out and delivery service on a trial basis in certain Jack Astor's locations in Ontario. The approval will be operative while dine-in operations are restricted or limited, but in any event until March 31, 2022 at SIR's option. In exchange, SIR has agreed to pay an amount equal to 6% of the revenue related to these trial Renegade Chicken operations to the SIR Royalty Limited Partnership (the "Partnership"). SIR is currently operating Renegade Chicken take-out and delivery service out of 21 Jack Astor's locations in Ontario. As this is a trial, no trademarks are being transferred. 

"Operating Renegade Chicken out of these Jack Astor's locations during this time of restricted in-restaurant dining will not impact the current operations of Jack Astor's, rather it helps us to optimize revenue for the benefit of all our stakeholders, including our hospitality personnel. While the Fund has no ownership interest in the Renegade Chicken trademark, the agreed payment to be made to the Partnership will similarly provide value to Fund unitholders," said Peter Fowler, Chief Executive Officer of SIR. "Once we have more insight into the long-term viability of Renegade Chicken and greater certainty with regards to a return to a more normalized operating environment for Jack Astor's, we intend to consider the next steps for Renegade Chicken."

Renegade Chicken is a takeout and delivery concept that SIR launched in a test phase in late 2020 in an attempt to increase sales volume and help ensure the survival of SIR during the pandemic. It was intended as a ghost kitchen concept that, while increasing the volume of food produced in the initial test locations (certain Jack Astor's and Duke's Refresher & Bar locations), was specifically designed and marketed as distinctly different from Jack Astor's. Effective June 1, 2021, SIR temporarily ceased all Renegade Chicken operations within its Jack Astor's locations, but continued to operate Renegade Chicken at its Duke's Refresher & Bar location in the St. Lawrence Market neighborhood in downtown Toronto, which is not part of the Fund's Royalty Pool.

SIR believes that Renegade Chicken has multi-unit growth potential and could eventually be considered, among other things, as a potential new concept brand for inclusion in the Fund's Royalty Pool if it is successful in exceeding $12.0 million in annualized revenue. However, there can be no assurance as to the future of the Renegade Chicken concept.

About SIR Royalty Income Fund
The Fund is a trust governed by the laws of the province of Ontario that receives distribution income from its investment in the SIR Royalty Limited Partnership and interest income from the SIR Loan. The Fund intends to pay distributions to unitholders on a monthly basis.

About SIR Corp.
SIR Corp. ("SIR") is a privately held Canadian corporation that owns a portfolio of 53 restaurants in Canada. SIR's Concept brands include: Jack Astor's Bar and Grill®, with 37 locations; Scaddabush Italian Kitchen & Bar® with nine locations; and Canyon Creek®, with two locations. SIR also operates one-of-a-kind "Signature" brands including Reds® Wine Tavern, Reds® Square One and The Loose Moose®. All trademarks related to the Concept and Signature brands noted above are used by SIR under a License and Royalty Agreement with SIR Royalty Limited Partnership. SIR also owns one Duke's Refresher® & Bar location in downtown Toronto, and one seasonal Signature restaurant, Abbey's Bakehouse®, which are currently not in consideration to be part of the Royalty Pool. For more information on SIR Corp. or the SIR Royalty Income Fund, please visit www.sircorp.com.

Caution concerning forward-looking statements
Certain statements contained in this report, or incorporated herein by reference, including the information set forth as to the future financial or operating performance of the Fund or SIR, that are not current or historical factual statements may constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Statements concerning the objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and the business, operations, financial performance and condition of the Fund, the SIR Holdings Trust (the "Trust"), the Partnership, SIR, the SIR Restaurants or industry results, are forward-looking statements. The words "may", "will", "should", "would", 'could", "expect", "believe", "plan", "anticipate", "intend", "estimate" and other similar terminology and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Fund, the Trust, the Partnership, SIR, the SIR Restaurants or industry results, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. These statements reflect Management's current expectations, estimates and projections regarding future events and operating performance and speak only as of the date of this document. Readers should not place undue importance on forward-looking statements and should not rely upon this information as of any other date. Risks related to forward-looking statements include, among other things, challenges presented by a number of factors, including: the success of the Renegade Chicken concept; the impact of the COVID-19 pandemic; market conditions at the time of this filing; competition; changes in demographic trends; weather; changing consumer preferences and discretionary spending patterns; changes in consumer confidence; changes in national and local business and economic conditions; pandemics or other material outbreaks of disease or safety issues affecting humans or animals or food products; changes in tariffs and international trade; changes in foreign exchange and interest rates; changes in availability of credit; legal proceedings and challenges to intellectual property rights; dependence of the Fund on the financial condition of SIR; legislation and governmental regulation, including the cost and/or availability of labour as it relates to changes in minimum wage rates or other changes to labour legislation and forced closures of or other limits placed on restaurants and bars; laws affecting the sale and use of alcohol (including availability and enforcement); changes in cannabis laws; accounting policies and practices; changes in tax laws; and the results of operations and financial condition of SIR. The foregoing list of factors is not exhaustive. Many of these issues can affect the Fund's or SIR's actual results and could cause their actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Fund or SIR.  There can be no assurance that SIR will remain compliant in the future with all of its financial covenants under the Credit Agreement and imposed by the lender. Given these uncertainties, readers are cautioned that forward-looking statements are not guarantees of future performance and should not place undue reliance on them. The Fund and SIR expressly disclaim any obligation or undertaking to publicly disclose or release any updates or revisions to any forward-looking statements. Forward-looking statements are based on Management's current plans, estimates, projections, beliefs and opinions, and the Fund and SIR do not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change, except as expressly required by applicable securities laws.

In formulating the forward-looking statements contained herein, SIR Management has assumed that it will be successful in dealing with the effects of the COVID-19 pandemic and that business and economic conditions affecting SIR's restaurants and the Fund will return to normalcy within the short to medium term.

For more information concerning the Fund's risks and uncertainties, please refer to the March 31, 2021 Annual Information Form, for the period ended December 31, 2020, and the Fund's Management Discussion & Analysis for Q3 2021, which are available under the Fund's profile at www.sedar.com. All of the forward-looking statements made herein are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Fund or SIR.

SOURCE SIR Royalty Income Fund

Peter Fowler, CEO, SIR Corp., Tel: [phone]; Bruce Wigle, Bay Street Communications, Tel: [phone]