How Spur plans to cope with SA’s shrinking middle class
Group opens 20 international outlets and says it is cutting costs to ease economic pressure at home
Spur Corporation, owner of chains such as RocoMamas and Hussar Grill, upped it full-year dividend 10.6% to 136c to end-June, as its expansion helped offset continued pressure on SA’s middle class.
The group opened 59 restaurants during the period, including 20 internationally, bringing the total number of outlets to 620 by the end of its financial year.
Group revenue rose 5.9% to R944.8m, with SA revenue rising 5.7% and international revenue 10.3%.
The company said there is pressure on its customer base in SA, and it will rationalise menus at some of its franchises and consider reducing the size of others where appropriate.
New restaurants helped international sales rise 16.2% in rand terms, with the group reporting strong trading across the rest of Africa, the Middle East and Mauritius.
Trading in Australia and New Zealand continued to be difficult, Spur said, and that division was hit by a R12m impairment during the period.
Franchise revenue in Spur increased 9.7%, Pizza and Pasta by 5.6%, John Dory’s by 8%, The Hussar Grill by 10.8% and RocoMamas by 8.3%.
Spur is planning to add at least 11 restaurants in SA in the year ahead, and 10 internationally. This includes three RocoMamas outlets in Saudi Arabia, two additional restaurants in Kenya and Nigeria, and one additional restaurant in Zimbabwe, Mauritius and Zambia.