Spur expands African footprint
SPUR Corporation, whose brands include Panarottis, John Dory’s and Captain DoRegos, will open outlets in Swaziland, Nigeria, Tanzania, Namibia and the Seychelles next year.
SPUR Corporation, whose brands include Panarottis, John Dory’s and Captain DoRegos, will open outlets in Swaziland, Nigeria, Tanzania, Namibia and the Seychelles next year.
With Africa’s middle class expected to triple by 2031, consumer-facing industries are harnessing opportunities to cash in on the surge in spending.
In its annual report, released yesterday, the restaurant franchise group said its strategy was to grow in existing territories to allow for the development of improved logistics, pricing and raw material efficiency.
“Countries in the rest of Africa offer a good opportunity to enter higher growth markets although each market brings its own particular challenges,” CE Pierre van Tonder said.
There are 25 restaurants in the group’s African division. “We have added resources to our African management team,” Spur said. “The two new Captain DoRegos (Mauritius and Namibia) have been received well and we believe that there is a large market for this offering in Africa. We continue to review our traditional models to adapt these to the higher set-up, occupancy costs and other challenges we encounter in certain countries in Africa.”
Africa’s fast-growing prospects have caught the eye of other local players such as Famous Brands and Taste Holdings, as well as global chains.
Domino’s Pizza, which is the largest pizza chain worldwide, opened two restaurants in Nigeria last year, and is exploring opportunities in Kenya and SA.
Another international food company establishing a platform in Africa is YUM Restaurants International, which intends to grow KFC “exponentially”.
Famous Brands, the owner of Wimpy and Mugg & Bean, last month acquired a 49% stake in Nigerian fast-food business Mr Bigg’s that it will use to entrench its position in Africa’s most populous country.
While rich pickings are clearly available in the rest of Africa‚ this must be tempered with knowledge of the trading risks such as the lack of formalised retail infrastructure, power shortages and poor logistics.