Tough times for Spur, but new SA outlets in the pipeline
The Spur Corporation's franchised restaurants have been hit hard by Covid-19 and the resulting lockdowns.
This is reflected in Spur's results for the second half of 2020.
Group revenue declined by 40.2% to R314.2 million in the six months up to December.
Total franchised restaurant sales declined by 29.5% to R2.9 billion for the half year.
Sales from international franchised restaurants dropped by 17.3% in rand terms, while sales from outlets in South Africa showed the biggest decrease with 31.0%.
This is despite a boost for take-away sales as people stayed home.
“Take-away sales more than doubled over the previous year and now account for 27% of total restaurant sales, with take-away sales in RocoMamas comprising 53% of the brand’s sales. We grew our sales with Mr D by 72% and Uber Eats by 41% for the six months.”
Despite the collapse in total earnings, the group plans to open eight to ten new restaurants in South Africa in the second half of the financial year.
International expansion will focus mainly on the rest of Africa, with four to six new sites planned.
Bruce Whitfield interviews Val Nichas, who was appointed as Group CEO of the Spur Corporation in October last year.
She describes the huge negative impact of the varying stages of lockdown.
The minute we started trading relatively normally we had the second wave... It's been a very erratic trading period and we foresee that it will continue, but closely correlated with the restrictions.Val Nichas, Group CEO - Spur Corporation
Obviously that's why we're supplementing the turnover with take-aways.Val Nichas, Group CEO - Spur Corporation
At the same time Spur is "quite amazed" at the loyalty of customers in the face of the challenges posed by the pandemic.
"Even at 50 people (capacity) we've got people queueing up or sitting on the benches waiting to be seated".
The world has to respond very nimbly to the market as we see these changes happen... We're super-excited about moving to Level 1.Val Nichas, Group CEO - Spur Corporation
Whitfield asked listeners whether it is possibly time to refresh the Spur brand.
Some, of course, want a brand they've known since childhood to stay exactly the same.
Others feel the Western theme and Native American "stereotypes" are outdated.
This is Nichas' response:
All brands go through a life cycle and if we look at all leading brands, they're constantly refreshing their proposition, their value offering, their store/restaurant experience, services and products.Val Nichas, Group CEO - Spur Corporation
We certainly are going to be looking at what Spur's going to start looking like going forward in terms of its future growth, in terms of its next generation... I can't tell you how it's going to evolve, but certainly we've got to be continuously refreshing the business like you would any brand that needs to be sustainable going forward.Val Nichas, Group CEO - Spur Corporation
Listen to the conversation on The Money Show:
Source : https://www.facebook.com/SpurSteakRanches/photos/a.166753676691334/3433819449984724
The poorest region in the world is projected to grow at 3.4%, kneecapped by the slow pace of Covid-19 vaccine rollouts.Read More
The Continent’s biggest retailer is leaving Nigeria. Lester Kiewit interviews Africa business analyst Victor Kgoemoeswana.Read More
Personal finance advisor Warren Ingram on how to save and invest for your child’s future education.Read More
“From those projects, we’ll see whether green hydrogen is feasible,” says environmental lawyer Margo-Ann Werner.Read More
Thomas Kgokolo has been appointed as the interim CEO of SAA, which is still in the throes of a nearly 16-month-long business rescue process.Read More
Is there a way to take some of the risks out of investing in cryptos? Yes, by building a balanced portfolio that helps spread some of the risks.Read More
Entrepreneur Pavlo Phitidis shares valuable tips on making your business stand out from the competition.Read More
The latest Deloitte consumer survey shows we are more worried about our finances than Covid, says Mike Vincent (senior partner).Read More
The situation in Lekwa Municipality is untenable, says Astral Foods CEO Chris Schutte. Govt has been ordered to intervene.Read More