Spur cautions on sky rocketing S.A meat prices - CNBC Africa

Spur cautions on sky rocketing S.A meat prices

Southern Africa

by Aviwe Mtila 0

“We’ve seen the meat price increase over the last five days to something like 12 to 13 per cent." Photo: Wikimedia.

Even with South Africa’s current economic climate, Spur has shown a positive performance with an increase of 12.6 per cent in restaurant sales according to its recent interim results.

Spur’s CEO, Pierre Van Tonder, joined CNBC Africa’s Tumisho Grater in studio to discuss the secret to its success as well as Spur’s future plans.

READ THE HIGHLIGHTS FROM THE CONVERSATION BELOW OR WATCH THE VIDEO:

“In the current circumstances, when we talk about the performance of Spur, obviously after many years of trade it has become a very big platform in terms of its location in South Africa.”

-          Spur’s CEO, Pierre Van Tonder.

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“We increased our turn over in Africa in the first six months at 20 per cent, which we were ecstatic about, but of course the difficulty in Africa, besides the logistics, is that you’re paying your rental in US dollars and you’re selling your food in local currency.”

-           Spur’s CEO, Pierre Van Tonder.

“From a management perspective, we were quite comfortable in terms of what we achieved with regards of the Spur growth at 6.6 per cent.”

-          Spur’s CEO, Pierre Van Tonder.

“We’ve seen the meat price increase over the last five days to something like 12 to 13 per cent. At the end of the day, you cannot pass that price on to the consumer. The budget came out yesterday, which we believe is a very positive sign from the minister, and it will assist us. We also believe that, yes the interest rate will increase this year a little bit, but at the end of the day we’ve always been innovative as a South African company to make sure that we drive the value propositions through our brands so that people can afford to come and eat out.”

-          Spur’s CEO, Pierre Van Tonder.

“Overall from a business perspective, the logistics in Africa is improving. I don’t think it’s an overnight fix but there are a lot of South African companies that are now going into Africa seeing the opportunity from a logistics point of view. We see it as a very positive opportunity for us to continue growth in Africa over the next three to five years.”

Spur’s CEO, Pierre Van Tonder.

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