COMPANY COMMENT
Spur rides out the dips after dropping specials
While the company looks set to fatten margins, there will be some fretting about the group’s pizza/ pasta brands
Spur’s 2017 decision to drastically cut promotional activity at its eponymous steak-house brand — including the legendary (and loss-making) Monday night burger specials — appears to be paying off. The decision did not go down well with customers at first, judging by the sales dips in the first two quarters of the financial year to end-June. But the 12% sales jump in the last quarter suggests Spur’s brand power and value offering endured. More importantly, Spur franchise holders, who bore the brunt of discount and promotions, must be feeling a tad more reassured about sustaining viability in these lean times. While Spur looks set to fatten margins, there will be some fretting about the group’s pizza/ pasta brands. The pizza segment, in particular, is highly competitive as large chains and upstarts battle desperately for market share. Thankfully, the recently acquired specialist brands like RocoMamas and (to a lesser extent) The Hussar Grill are gobbling up profitable market share in ...
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