Sportscene Group - Measures to Limit the Impact of the Pandemic and a New Ready-to-Eat Offering

MONTREAL, March 31, 2020 /CNW Telbec/ - Sportscene Group Inc. ("Sportscene" or "the Company"); (TSXV: SPS.A) today provides an update on its operations and the most recent mitigation measures implemented to safeguard the health and well-being of its employees, customers and the community in the context of the ongoing COVID-19 pandemic.

Following the Quebec government's guidelines that have been put in place since March 25, 2020, certain Sportscene Group establishments offering home deliveries and having take-out counters will remain in operation. In addition, the Company's retail activities remain in operation and related sales of its La Cage and Moishes branded products in grocery stores continue to grow.

The following measures have been put in place:

Support Measures for Employees, Partners and Customers

• Prioritizing the health and safety of our employees and guests by applying the highest standards of hygiene and sanitation.
• Starting on April 6, the equivalent of one meal per week will be offered to employees that were laid-off temporarily.
• Providing a telephone number and email address to employees who may have questions in relation to COVID-19.
• Faster processing of payroll and statements of employment for temporarily laid-off employees.
• Royalty breaks to the 11 franchisees for an indefinite period.
• Continuous communications on the progress of the situation in all establishments, to employees and customers on various platforms.
• Revised prices for delivery and takeout orders.
• Maintaining delivery and takeout activities in certain restaurants on a voluntary basis.

Measures to Safeguard the Financial Health of Sportscene Group

• Voluntary waiver of the President's remuneration for the duration of the crisis.
• Significant reduction in the salaries of senior executives, members of the management committee and restaurant management teams.
• Suspension of the directors' remuneration.
• Cash preservation with tight management of working capital and nonessential expenses.
• Suspension of investment projects in the restaurant network for the duration of the crisis.

New Ready-to-Eat Offering, "La Cage chez vous"

In addition to maintaining its home delivery and takeout operations, the Company is working in collaboration with several local partners on a new range of ready-to-eat meals. Many partners answered the call. This new offering will be prepared in part in the central kitchen which is held in partnership by Sportscene Group and is located in the Montérégie region. With the arrival of the pandemic and subsequent restaurant closures, Sportscene Group accelerated a planned investment project aimed at growing production capacity and produce ready-to-eat meals. This new offering will be available gradually at various establishments and online at www.lacagechezvous.com and will include well-known and comforting La Cage dishes along with new a new offering developed in collaboration with local partners and restaurants.

"Our solidarity, resilience and ability to innovate and reinvent ourselves has always been the hallmark of our group. It is precisely on this strength that we will rely to continue serving our customers and supporting our local food ecosystem. To this end, we are currently working with local partners and restaurateurs to offer comforting ready-to-eat meals, which will be added to our delivery and take-out services. Safely providing comfort and pleasure remains our priority in these tumultuous times," said Jean Bédard, President and Chief Executive Officer of Sportscene Group. "It is time to stand together and act in solidarity with our employees and local partners."

Profile

Sportscene Group Inc. is a pioneer and a leader in the ambiance restaurant niche in Quebec. Since 1984, it has been operating the restaurant chain La Cage – Brasserie sportive (« La Cage »), which differentiates itself by its sporting ambiance and food offering made from fresh, local products. Enjoying a strong brand image, the La Cage banner is present throughout the province and comprises 41 outlets at the date hereof. Sportscene is diversifying its restaurant activities through its operation of the Moishes steakhouse, of a breakfast restaurant L'Avenue, of an Asian cuisine restaurant P.F. Chang's and of its catering business for special events, thus becoming a significant player in Quebec's restaurant industry. Besides its restaurant operations, Sportscene is active in the sale of La Cage and Moishes branded products in grocery stores and of ready-to-eat meals.

Disclaimer

This press release contains forward-looking statements relating to the Company. Statements based on management's current expectations contain known and unknown inherent risks and uncertainties. Actual results may vary from expectations. The reader is cautioned not to place undue reliance on forward-looking information. The Company does not undertake any obligation to update or revise any forward-looking statements as a result of new information, future events and other changes, except if required by applicable laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Sportscene Group Inc.

Jean Bédard, Chairman of the Board, President and Chief Executive Officer; François-Xavier Pilon, Vice-President, Finance, 450-641-3011