RocoMamas declining sales dampen Spur group’s results
Sales from existing RocoMamas outlets, Spur Corporation’s growth engine, slow down 6.7% in the interim to December
Spur Corporation’s RocoMamas chain, a major growth engine for the restaurant group in recent years, has run out of steam. Sales from existing RocoMamas outlets fell 6.7% in the six months ended December 2018, versus growth of 22.2% a year before and 45% in the second half of 2016. Including new stores, the chain’s total sales rose 6%.
Spur CEO Pierre van Tonder said the decline in sales from existing RocoMamas restaurants “reflects a period of consolidation following the unprecedented increase in restaurant numbers since acquisition in March 2015”. Spur said that group-wide franchised restaurant sales rose 6.5% to R3.9bn in the interim period. In SA, sales were up 5.7%, while sales from international restaurants increased 12.7% in rand terms. The core Spur Steak Ranches chain grew existing restaurant sales 5.1% and total restaurant sales, including store additions, 6.1%. “The fact that RocoMamas stalled is a little concerning not just for Spur but for the wider fast food seg...