DURBAN – Spur Corporation plans to capitalise on the opportunities provided by technology to expand its customer base by using services like Uber Eats and Mr Delivery.
Chief executive Pierre van Tonder said discretionary spend was under growing pressure which was resulting in a continuing decline in restaurant and shopping centre foot traffic, with the middle-income customer base under increasing financial pressure, with little relief expected in the short- to medium-term.
“Our focus in this environment will be on retaining and growing our customer base through our product quality, value, customer experience and innovation.
“We also plan to increase market share by capitalising on the growing opportunity through delivery services, which are becoming increasingly popular across all brands, including Uber Eats and Mr Delivery, as well as call and collect,” Van Tonder said.
Spur’s results for the year to end June reflected an environment of low disposable income for the consumer.
The group said total franchised restaurant sales across the local and international operations increased by 0.6 percent to R7.2 billion, and by 1.3 percent to R7.1bn excluding the results of the Captain DoRego’s chain which was sold with effect from March 1.
Revenue from continuing operations increased by 3 percent to R667.2 million, up from R648m, while headline earnings per share (Heps) from continuing operations grew by 14 percent to 160.76 cents a share, up from 140.96c.
However, comparable Heps were down by 9.5 percent.
The group declared a dividend of 123c a share, down by 6.8 percent compared to last year.
Reflecting on the results, Van Tonder said political concerns and policy uncertainty had resulted in weak economic growth in South Africa, with a volatile exchange rate, rising unemployment, increased pressure on consumer disposable income and low levels of consumer confidence.
During the period the group opened 44 new outlets across all brands, excluding Captain DoRego’s, in South Africa.
In addition to the 43 Captain DoRego’s outlets sold, 18 restaurants were closed, bringing the local restaurant base to 513.
The group said it revamped 10 outlets and four relocated to better trading locations, and it opened 11 international outlets including the first RocoMamas in Australia in June.
The group opened restaurants in other parts in Africa including Nigeria, Mauritius,Kenya, Swaziland and Zimbabwe.
However, it closed nine international restaurants during the period in addition to three Captain DoRego’s outlets disposed of.