Restaurant sales increase to R7.2bn
SPUR Corporation increased total franchised restaurant sales from continuing operations by 4.2 percent to R7.2 billion in the year to June, following the closure of the group’s UK operations. All its operations in the UK and Ireland – which comprised a separate operating segment – ceased trading by June 30 last year. The group said in its sales update released yesterday that franchised restaurant sales in South Africa grew by 4.4 percent, with sales from international restaurants (excluding the UK) increasing by 2.4 percent in rand terms. International restaurant sales increased by 6.3 percent on a constant exchange rate basis. Internationally, five new outlets were opened, including the group’s first restaurants in New Zealand (Spur), Ethiopia (Spur), Oman (RocoMamas) and Saudi Arabia (RocoMamas). Chief executive Pierre van Tonder said domestic trading conditions continued to deteriorate in the second half of the year, with the Spur’s middle-income market being impacted by the slowing economy. “The robust performance of The Hussar Grill highlights the resilience of higher income consumers while our pizza and pasta brands have also performed well. The company’s results for the year to June will be released in September.