Spur's total sales reach R2.8bn

27 Jan 2014

Spur Corporation increased total restaurant sales by 11.5% to R2.8bn in the six months to December‚ with sales from existing restaurants increasing by 7.6%.

Spur says that restaurant sales across its franchises has risen by 11,5% in the past six months. Image: Spur

Restaurant sales in South Africa increased by 11.0% for the period‚ while sales in the international operations were 16.1% higher in Rand terms‚ bolstered by the weaker currency during the period.

"Spur Steak Ranches in South Africa increased sales by 10.0%‚ with turnover from existing restaurants up 6.8%. The success of the Spur Family Card loyalty programme‚ breakfast and weekday promotions and restaurant upgrading programme continue to support good sales growth‚" the company said in a trading update.

Panarottis Pizza Pasta grew restaurant sales by 26.2% in South Africa‚ with turnover from existing restaurants increasing 14.8%. Restaurant sales benefitted from continued product innovation‚ restaurant upgrades and the success of the brand's on-going breakfast promotion.

It said that sales in John Dory's Fish Grill Sushi restaurants grew by 19.3% and by 13.1% in existing stores. Continued menu refinement‚ installation of kids' play facilities and marketing focused on weekday promotions have boosted sales.

In contrast to the other brands‚ restaurant sales for Captain DoRegos declined 9.2%‚ largely as a result of closing redundant outlets and the tight economy in which Captain DoRegos operates. The brand accounts for 3.3% of total restaurant sales.

"While progress has been made in integrating the brand into the group‚ this has taken longer than originally anticipated. Four new outlets were opened and six closed during the period‚" Spur said.

"A new chief operating officer was appointed with effect from July and management remains confident that the brand will perform to expectations once fully integrated into the group's structures," the company added.

Spur now has 492 restaurants‚ of which 49 are outside of South Africa.

Chief executive Pierre van Tonder‚ said: "The slower retail sales growth in the food and beverage sector in the second half of last year is a clear indication that consumers in our target market are feeling the impact of a depressed economy‚ particularly in the lower LSM end of the market. Despite these pressures we have performed well for the period."

Spur's results will be released at the end of February.

Source: I-Net Bridge

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