The Spur Group, which includes popular brands like Spur, Panarottis, and RocoMamas, experienced an 81% increase in headline earnings per share (HEPS) to R2.61 for the 12 months ending June 25. However, the group also reported R4.5 million in lost sales due to a weeklong Cape Town taxi stay-away protest.
- The taxi protest caused operational disruptions in 97 Spur restaurants, leading to reduced foot traffic, closures, and trading with fewer staff members. CEO Val Nichas emphasized the franchisees’ commitment to ensuring the safety of restaurant teams during the protest.
- Profit before income tax for the Spur Group rose by 51.9% to R318.4 million, and the group declared a dividend of R1.10 per share.
- Revenue increased by 23% to R9.5 billion, primarily driven by the Spur brand, which saw sales rise by almost 25%. Spur’s sales accounted for R5.9 billion of the total sales, while international restaurants contributed around R939 million.
- Sales growth for the group was strong in the first half of the year, with a growth rate of 31.5%. However, it dropped to 15.1% in the first six months of 2023 due to economic challenges such as a weak economy, high interest rates, and food inflation.
- The sit-down, higher-end restaurants within the Spur Group, including The Hussar Grill, Casa Bella, and Nikos, experienced a sales increase of 42.2%. This growth was attributed to the rise in both domestic and international tourism, with a 13% increase in the number of customers year on year.
- Spur’s expansion plans include opening 41 new restaurants in South Africa and 12 internationally in the coming year. The Panarottis brand is set for aggressive expansion, with 15 new stores planned.