Spur’s interim restaurant sales rise to R3.9bn

Picture: Spur. (Facebook).

DURBAN – The Spur Corporation reported a 6.5 percent increase in its franchised restaurant sales to R3.9 billion for the six months to end December, with the group attributing the performance to Spur Steak Ranches and a strong performance from The Hussar Grill. 

The group said yesterday that in South Africa, franchised restaurant sales increased by 5.7 percent, while sales from international restaurants increased by 12.7 percent in rand terms and by 12.1 percent on a constant exchange rate basis.

Chief executive Pierre van Tonder said local franchised restaurant sales increased by 11.3 percent in the first quarter to September, while sales growth in the second quarter slowed to 1.2 percent. 

“While the second quarter performance was disappointing, it is generally consistent with sales trends in the local retail sector. The South African consumer is taking significant strain due to the sombre state of the economy, although the performance of The Hussar Grill indicates that higher-income consumers continue to be more resilient to the weakening economy,” Van Tonder said. 

The group added that the sales information included excluded the Captain DoRegos chain, which was sold last year.

The group opened 25 new outlets in South Africa during the period, while closing six outlets in return. Internationally the group opened 14 restaurants. 

“In addition, the group acquired the Nikos Coalgrill Greek chain, which comprised six restaurants at the effective date of August 1 last year and opened two further outlets subsequently,” the group said.

At the end of December the group’s restaurant base totalled 616, up from 575 compared to the end of June, including 76 operating outside of South Africa.

Van Tonder said sales from existing restaurants in the RocoMamas chain reflect a period of consolidation following the unprecedented increase in restaurant numbers since acquisition in March 2015. 

He added that restaurant turnover for the Panarottis chain was impacted by aggressive discounting by competitors in the takeaway pizza market.

“While restaurant trading conditions have deteriorated in Australia and New Zealand, Africa and Mauritius traded well. In particular, seven new Panarottis restaurants were opened in Zambia,” Van Tonder said. 

Spur’s half-year results will be released on February 28.


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