“The business increased 11 per cent overall as a brand so part of our principal and our platform was to consolidate that brand as well. It’s a well-known fact a year and a half ago we had certain difficulties within that group which we’ve now come over,” Spur’s CEO Pierre van Tonder told CNBC Africa.
“We revamped nine stores this year with a new look and feel, we’ve introduced some great market initiatives which are bringing in the results. Even in the first two to three months of our new financial year, it’s really delivering some exciting results for us.”
The [DATA SUR:Spur Corporation], which includes the likes of Spur Steak Ranches, Panarottis Pizza Pasta and John Dory’s Fish & Grill, reported that group revenue increased by 29.7 per cent from 503 million rand in 2012 to 653 million rand in 2013.
Operating profit before financial income increased by 12 per cent from 168 million rand in 2012 to 189 million rand in 2013 and profit before income tax was up 11.4 per cent from 175 million rand to 195 million rand.
“We must never undermine the value that the golden goose brings, which is Spur. We’re really excited about the openings of the Spur’s that we have in South Africa over the next six months. Our African expansion is now starting to get a bit of traction as well. Spur is the major contributor to profitability within our group,” van Tonder explained.
Headline earnings also rose from 111 million rand in 2012 to 134 million rand in 2013 and basic earnings per share increased by 17.6 per cent from 130.7 cents to 153.6 cents.
“It takes on board the franchisee commitment to deliver those value propositions to the consumer. I must say if one looks at our results and you look at our overall franchisee commitment to the strategies that we’ve done, in terms of our weekday specials and our value drivers across all four brands, it’s been a tremendous effort on their side,” van Tonder indicated.
One of those strategies is a membership card, which he believes has gained great interest and traction among the group’s customers.
“Currently on the database we have 1.4 million users. The principle is to get them to use that card as many times as possible to drive frequency. I must say we’ve been very pleasantly surprised in terms of the uptake of the card and our intention is to roll that out into Panarottis and enhance John Dory’s card as well.”