Spur Corporation has reported a resilient financial performance for the year ended June 2026, with franchise restaurant sales increasing 6.9% to R12.3bn as the group expanded its footprint in South Africa and international markets.
The restaurant group opened 52 new outlets during the year; 42 in South Africa and 10 internationally, taking its network to 751 restaurants across 14 countries.
Despite challenging consumer conditions, the group's profit before income tax, excluding the R129.5m GPS litigation provision, rose 12.8% to R453m, while adjusted headline earnings per share increased 8.9% to 370 cents.
Expansion drives retail growth
Spur's expansion strategy remains a key driver of growth, with the group continuing to invest in new formats, brands and locations.
In South Africa, the group opened 42 restaurants, including 12 Spur, 12 Panarottis and seven Doppio Zero outlets. Fifteen restaurants closed during the period, leaving the local footprint at 639 stores.
Internationally, 10 restaurants were added, taking the group's footprint outside South Africa to 112 outlets.
Spur has also re-entered Lesotho, while Panarottis has expanded into Botswana, where it now has three restaurants. A first Doppio Zero outlet is under construction in Harare, Zimbabwe.
The group plans to accelerate this expansion, targeting 50 new South African restaurants and 16 international openings in the year ahead.
"Franchisees continued to demonstrate their confidence in our brands, investing over R200 million in new restaurants and revamps, while creating more than 2 000 new restaurant jobs," said Val Nichas, Group CEO.
Panarottis and new formats gain momentum
While Spur remains the group's largest contributor, accounting for 64% of South African restaurant sales, Panarottis delivered particularly strong growth, with local restaurant sales rising 16.3%.
The speciality brand portfolio increased restaurant sales by 8%, while international franchised restaurant sales grew 9.8%.
Doppio Zero is also expanding through smaller and alternative formats. These include the first Doppio Bistrot in Rosebank, Doppio Caffè locations in Sea Point and Sandton, and the Doppio Roam "coffee on the move" concept in Centurion.
The group is also using its virtual kitchen brands to extend its reach without requiring standalone restaurants. Its nine virtual kitchen brands are now available through 455 participating restaurants, with online sales growing 6.4% year on year.
Investing in the customer experience
Spur Corp's growth strategy extends beyond adding stores, with franchisees investing in concepts designed to differentiate the brands and strengthen customer appeal.
The newly opened Burning Arrow Spur in Queenswood, Pretoria, has been positioned as a flagship concept for the brand, incorporating an enhanced family dining experience and innovative children's play areas.
Nichas said customer response had been "exceptional", with the restaurant recording waiting times of up to two hours during its launch month.
The group's more than 2.6 million active loyalty members also provide an important platform for driving customer engagement and repeat visits.
International growth remains a priority
International expansion represents another significant growth opportunity. Mauritius currently has 19 restaurants and accounts for 20% of international restaurant sales, while Spur contributes 39% of international sales, followed by Panarottis at 36% and RocoMamas at 24%.
Nichas said the group sees significant room to expand across existing and new markets.
"We have identified a strong runway for expansion and believe our brands are far from reaching saturation in South Africa or beyond," she said.
The group's revenue increased 8.5% to R4.2bn, supported by growth across its South African franchise, international and manufacturing and distribution operations.
However, trading conditions remain challenging, with constrained consumer spending, higher input and energy costs, fuel price increases and intense promotional activity affecting the restaurant sector.
Despite these pressures, Spur's combination of an expanding franchise network, diversified brand portfolio and continued investment in new formats positions the group to pursue further market share in South Africa and across the continent.
