Spur plans to expand its Nikos footprint
Lot of potential to grow
FRANCHISOR Spur Corporation says it plans to expand the footprint of the familyowned restaurant group, Nikos Coalgrill Greek, into more stores in South Africa.
Spur said Nikos provided a lot of potential to grow beyond its six outlets. Spur chief executive Pierre van Tonder said they believed the Nikos Coalgrill Greek brand could expand to about 50 restaurants throughout South Africa over the next few years.
“As a multibrand restaurant franchisor, we are experienced in acquiring and expanding niche restaurant concepts,” he said. “Our most recent acquisition, RocoMamas, has grown from five outlets when we bought the business in 2015 to a national footprint of 64 restaurants, with a further six outside South Africa.”
Yesterday Spur announced that it had acquired a 51 percent stake in Nikos Coalgrill Greek for an undisclosed amount.
The group acquired the traditional homestyle Greek dining facility from the founding family members Peter, Nicolette and Nicholas Triandafillou and Pano Economou.
The group said the family would retain the balance of the shareholding while continuing to manage the business with the support of its group franchising expertise. The deal’s purchase consideration would be calculated based on a fivetimes earnings multiple after the third year.
The acquisition was, however, subject to a due diligence evaluation. The group said transaction would be effected in August.
In February Spur reported a 2.6 percent decline in total franchised restaurant sales from continuing operations to R3.7 billion for the six months to December.
The group said sales had slowed 3 percent against a 3.2 percent rise in international sales on a constant exchange rate basis.
Group revenue declined 0.9 percent to R344.6 million, while headline earnings from continuing operations declined by 11.8 percent to R96.6m and by 19.7 percent on a comparable basis.
Nikos Coalgrill Greek will become Spur’s eighth restaurant brand in their growing portfolio that includes the flagship Spur Steak Ranches, Panarottis Pizza Pasta, John Dory’s, The Hussar Grill, RocoMamas, Casa Bella and Spur Grill And Go. It currently has 613 restaurants in South Africa, Nigeria, Mauritius, Kenya and Namibia.
Nikos Coalgrill Greek opened its first restaurant in Durban last year and two more in Sandton and Randpark Ridge this year. Its other outlets are in Ballito, Fourways and Pretoria East. Yesterday Spur said Nikos Coalgrill Greek would open an additional four outlets in the coming months.
Van Tonder said they would retain the services and expertise of the Nikos Coalgrill Greek founders who are passionate about the Nikos brand and traditional Greek food.
Spur shares closed flat on the JSE yesterday at R25.76.