Spur expects sales at new brands to sizzle
Although tough trading conditions continue to gnaw at prospects for the fast food sector, restaurant franchisor Spur Corporation has managed a sliver of top line growth thanks to strong trading by recently acquired brands RocoMamas and The Hussar Grill. A trading update issued on Monday also showed that the core Spur Steak Ranches brand managed a strong sales comeback, especially in the last quarter of the year to end-June. Spur has pencilled in total franchised restaurant sales edging up 1.3% to R7.1bn in the year to June. A divisional breakdown showed franchised restaurant sales in SA growing 1.5% with sales from international restaurants falling 0.7% in rand terms.
Global restaurant sales rose 2.7% on a constant currency basis. A further breakdown showed the Spur Steakhouse brand, which accounts for about two-thirds of the group’s South African business, would report a 2.8% decline in total restaurant sales and a 4.9% drop in existing restaurant sales. Fortunately fast expa...