Spur sales up 11.5% to 2.8 billion rand - CNBC Africa

Spur sales up 11.5% to 2.8 billion rand

Earnings

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Spur Menu. PHOTO: Spur steak ranches

The steakhouse franchise reported an increase of 11 per cent in restaurant sales in South Africa and a 16.1 per cent increase in their international operations due to the depreciating Rand.

Spur Steak Ranches in South Africa increased sales by 10 per cent with turnover from existing restaurants up 6.8 per cent.

“The success of the Spur Family Card loyalty programme, breakfast and weekday promotions and restaurant revamp programme continue to support good sales growth,” said the company in a statement.

The Panarottis Pizza Pasta division’s sales increased by 26.2 per cent, with turnover from existing restaurants up 14.8 per cent.

Sales in John Dory’s Fish Grill Sushi restaurants grew by 19.3 per cent and by 13.1 per cent in existing stores.

 On the other hand, the group’s restaurant sales for Captain Doregos declined 9.2 per cent due to the closing of redundant outlets, the appointment of a new chief executive officer as well as the tight economy.

“While progress has been made in integrating the brand into the group, this has taken longer than originally anticipated. Four new outlets were opened and six closed during the period. A new chief operating officer was appointed with effect from July 2013 and management remains confident that the brand will perform to expectations once fully integrated into the group’s structures,” continued the statement.

Chief executive, Pierre van Tonder, added that slow retail sales growth for the group indicates that consumers are under pressure due to a depressed economy but overall the company are satisfied with their performance.   

“The slower retail sales growth in the food and beverage sector in the second half of 2013 is a clear indication that consumers in our target market are feeling the impact of a depressed economy and increasing cost pressures, particularly in the lower LSM end of the market. Despite these pressures on our customers, we have performed well for the period,” he said.

“We will continue to reward our customers with great value, excellent food and a satisfying dining experience to ensure that we maintain and grow our market share.”

13 new restaurants were opened during the period, increasing the number to 492 restaurants, of which 49 operate outside of South Africa.

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