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Spur Corporation half-year sales decline by 29.5%

Spur Corporation has continued to be negatively impacted by Covid-19 and trading restrictions as its sales for the six months to end December slumped by 29.5 percent. Photo: File

Spur Corporation has continued to be negatively impacted by Covid-19 and trading restrictions as its sales for the six months to end December slumped by 29.5 percent. Photo: File

Published Feb 1, 2021

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DURBAN - SPUR Corporation has continued to be negatively impacted by Covid-19 and trading restrictions as its sales for the six months to end December slumped by 29.5 percent, with John Dory's Fish Grill Sushi declining the most by 40.1 percent. RocoMammas reported the lowest decline in sales of 15.3 percent.

In the sales update released on Friday, the restaurant franchisor said that as expected these restrictions, combined with decreased consumer disposable income, were the main contributors to total franchised restaurant sales declining by 29.5% to R2.9 billion compared to R4.1bn reported a year earlier.

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“Continued Covid-19 pandemic lockdown trading restrictions, although at reducing levels in the first half of this reporting period, further exacerbated by the onset of the second wave of the pandemic and the resultant implementation of revised level 3 restrictions in the key trading month of December 2020, curtailed franchised restaurant sales in the six months to December,” the group said.

Spur's sales from franchised restaurants in South Africa declined by 31 percent with sales from international restaurants decreasing by 17.3 percent in rand terms.

Newly-appointed chief executive Val Nichas said a steady post-lockdown recovery in restaurant turnover monthon-month was reported across most of their brands with a strong October trading month.

“The reality of a second wave of Covid-19 infections gathering momentum in South Africa in December, however, necessitated government's reintroduction of a national curfew and restrictions on social activity. The imposition of the adjusted level 3 lockdown regulations in late December impacted restaurant sales, with the national curfew limiting trading hours. The ban on the sale of alcohol together with the stringent reduction on seating capacity further reduced restaurant foot traffic,” Nichas said.

Spur's portfolio of restaurants include Spur Steak Ranches, Pizza and Pasta, RocoMamas, The Hussar Grill, Nikos Coalgrill Greek and John Dory's Fish Grill Sushi.

In Spur Steak Ranches, sales declined by 31 percent, while Pizza and Pasta sales were 36.6 percent lower and The Hussar Grill sales were down by 37.6 percent. The group opened 17 restaurants in South African and closed 18 during the period while seven restaurants were opened and four were closed internationally in the same period. Its restaurant base consisted of 633 outlets at the end of December, which includes 87 outlets operating outside of South Africa.

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Nichas said restaurant turnover for December in SA declined by 25.8 percent compared to December 2019, while international turnover decreased by 11.1 percent in rand terms, and by 8.3 percent on a constant exchange rate basis. Spur will release its half-year results for the six months to end December on March 2.

The share price slid 0.61 percent on Friday to R16.38.

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