Spur grows half-year HEPS 11.6%

Spur Corporation, a prominent player in the restaurant industry, has announced higher interim profits in its recent financial report. The company revealed that headline earnings per share had surged by 11.8 per cent, and the interim dividend had seen an uptick of 11.6 per cent compared to the previous year. Despite the challenging economic environment and the strain on consumers' disposable income, Spur has continued to focus on its unique value proposition to attract customers to its restaurants. Val Nichas, the CEO of Spur, joined CNBC Africa to delve deeper into the company's performance and strategies moving forward. One of the key highlights of the interview was the emphasis on offering added value, excellent service, quality products, and generous portions to win over consumers. Nichas acknowledged the competitive landscape in the restaurant industry, stating that providing a superior dining experience is crucial to stand out and retain customers. The CEO also discussed the effectiveness of value-added campaigns in driving foot traffic and highlighted the success of loyalty rewards programs in boosting customer engagement. Spur's ability to adapt its marketing operations to cater to cost-conscious consumers has been pivotal in sustaining its performance in a tough operating environment. Additionally, Nichas addressed the closure of underperforming stores, including two Rocamama outlets in Saudi Arabia, attributing the decision to the lack of compliance with the brand standards by the franchisee. Looking ahead, the CEO outlined key strategic shifts for John Dory's, focusing on expanding the brand's footprint and making seafood offerings more appealing to a wider audience. Nichas acknowledged the challenges posed by global macroeconomic uncertainties and currency devaluations in African markets where Spur operates. He elaborated on the strategies deployed by franchise partners to mitigate forex risks, such as adjusting menu prices and purchasing local currency to hedge against exchange rate fluctuations. Despite these challenges, Spur remains optimistic about its growth prospects and is committed to navigating the complex operating landscape in the restaurant industry. With a strong focus on innovation, customer experience, and strategic expansion, Spur is poised to capitalize on emerging opportunities and drive sustainable growth in the coming years.