Spur Corporation has delivered a 12% rise in profit for the six months to December, lifted by its popular brands, as the company plans to open more restaurants as it believes brands have not reached saturation levels in South Africa or beyond.
Group revenue rose by 13.8% to R2bn through solid growth in franchise restaurant turnover, improved sales from the manufacturing and distribution division and higher sales from retail company stores. Total restaurant sales grew by 10% to R5.9bn, with the recently acquired Doppio Collection brands contributing sales of R351m.
Group CEO Val Nichas said despite sustained pressure on disposable income, the group continues to attract customers into restaurants with its distinct and differentiated value proposition.
“Our proven capability in casual dining hospitality remains our strategic competitive advantage,” she said. The battle for market share has also intensified in the highly competitive sector.
The iconic Spur Steak Ranches brand grew restaurant sales by 2.8% to R3.4bn, accounting for 64% of total South African sales. Sales generated by the Spur Family Club loyalty programme represent more than half of the brand’s restaurant turnover.
Panarottis increased restaurant sales by 14% and RocoMamas by 8.4% , with the brands each representing about 10% of local sales.
Sales in the speciality brand portfolio increased by 86%, bolstered by the inclusion of the Doppio Collection. Excluding the three Doppio brands, sales grew by 5.2% which was mainly driven by the reputable grill house chain, The Hussar Grill. International franchised restaurant sales increased by 8.7%.
Mauritius represents 23% of international sales with Spur leading the brand sales contribution at 40%, followed by Panarottis at 33% and RocoMamas at 27%.
“The group’s ability to harness its resources and apply our brand expertise to evolve and grow brands has been core to the resilient trading performance, ensuring that the brands remain relevant and appealing to customers as competition in the sector escalates,” Nichas said.
The group opened 21 restaurants in South Africa, including three Doppio Zero, one Piza é Vino and one Modern Tailors restaurant. Doppio Zero opened its first Halaal restaurant in KwaZulu-Natal which has been well received by consumers. Five restaurants were closed. In total Spur has 619 locally.
Twelve new restaurants were opened in the rest of Africa to bring the international store network to 107 after three restaurants were closed. Spur plans to open 47 new outlets in South Africa and 13 internationally in the 2025 financial year.
“As a group we are well-positioned to gain market share across categories, regions and countries, supported by our portfolio of 10 distinctive, market-leading restaurant brands.
“Our brands have certainly not reached saturation levels and we will continue to focus our purpose of 'Leading for the Greater Good' as we align all our activities on our strategic growth on the continent of Africa and leveraging the group’s unique differentiator of casual dining brands that lead the experience,” Nichas said.
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