Access to clean water is a major concern for Spur
The Spur Corporation said in its latest company report on Thursday that access to water has become a major concern and challenge for the eatery organisation.
The restaurant group noted that getting access to reliable, clean water in certain regions of South Africa has been a prevalent challenge.
“The inability in certain regions to access a reliable, clean water supply is becoming more prevalent, requiring franchisees to seek alternatives. Two hundred and seventeen stores have invested in infrastructure to secure a supply of usable water,” Spur said.
“The need to invest in alternative water reserves at restaurants will be a key focus in future. The group continues to engage with its franchisee network and consider requests for short-term financial support,” it said.
The group also noted the Eskom electricity crisis and its impact on franchisee profitability.
“Operating costs continue to place pressure on franchisee profitability, with the costs of alternative power solutions now an everyday expense,” Spur added.
“Currently, the challenge is continuous repair and replacement of generators, with 99% of restaurants equipped with alternative power solutions.”
FINANCIAL RESULTS
To date, the Spur has 687 outlets trading across South Africa and 13 countries in the rest of Africa, Mauritius and the Middle East.
The group owns 10 established brands that include John Dory’s, Panarottis, the Hussar Grill and Dopio Zero.
In the trading statement, Spur said its headline earnings for the six months, ending December 2023, increased by over 15% to R130 million.
“Total restaurant sales of R5.4 billion were traded in the period, 10.4% higher than the prior comparable period,” Spur noted.
“The Spur brand accounts for 69% of the group’s South African restaurant sales, followed by the RocoMamas and Panarottis brands which each represent 10% of South African restaurant sales. The international restaurants represent 10% of group restaurant sales,” according to the group.
The group revenue increased by 15.2% to R1.8 billion.
“The revenue growth was supported by higher sales in the retail company stores (+47.4%) (excluding Doppio Collection, +0.3%), increased sales from the manufacturing and distribution division (+12.4%) (excluding Doppio Collection, +12.2%) and improved franchised restaurant turnovers.”
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