JOHANNESBURG - Chain restaurant owner Spur Corporation on Monday reported a 25.9 percent decline in headline earnings to R135.1 million in the year to June 2017after discretionary spending came under pressure because of deteriorating economic conditions and growing uncertainty in the country.
Sales in the last quarter were also impacted by the social media fallout following a racially charged incident between customers in a Spur outlet south of Johannesburg.
The franchise owner said the financial difficulties of middle income South African families contributed to sales in Spur Steak Ranches declining by 2.1 percent.
The restaurant's brand appeal and loyal base of 1.8 million Spur Family Card members had been key to trading through this difficult period, Spur chief executive Pierre van Tonder.
The slowdown in consumer spending and confidence had led to a sharp decline in shopping mall foot traffic.