Spur recovers early-year sales decline
The local restaurant sector was hardest hit by lockdown regulations, which put an end to sit-down customers for months at a time, but Spur says that it saw a rebound in the second half of the year which is a positive sign of things to come. Group revenue for the year declined by 10.5 per cent to 681 million rand and headline earnings increased by 28.3 per cent to 93 million rand. Spur CEO, Val Nichas joins CNBC Africa for more.
Thu, 23 Sep 2021 15:43:37 GMT
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AI Generated Summary
- Group revenue declined by 10.5% to 681 million rand, while headline earnings increased by 28.3% to 93 million rand
- Spur leveraged various sales channels such as tech-based delivery services and marketing campaigns to promote takeaways and click-and-collect services
- The company plans to maintain its focus on sit-down dining while expanding its presence in the takeaway market and exploring growth opportunities in African markets
South African restaurant chain, Spur, has reported a significant uptick in business during the latter half of the year, marking a positive turn following earlier declines in sales due to lockdown measures. Group revenue saw a 10.5% decrease to 681 million rand, while headline earnings surged by 28.3% to 93 million rand. CEO Val Nichas attributes this recovery to a shift in lockdown legislation that allowed for a return of customers to their restaurants. The company strategically leveraged various sales channels, including tech-based delivery services and marketing campaigns to promote takeaways and click-and-collect services. Spur also introduced virtual kitchen brands, which proved to be successful additions to their business model. Moving forward, Spur aims to maintain its focus on sit-down dining while expanding its presence in the takeaway market through initiatives like click and collect and drive-through services. Additionally, the brand is eyeing further expansion into African markets, with plans to open seven new international restaurants in the upcoming fiscal year. With a strong foothold in countries like Zambia, Namibia, and Mauritius, Spur aims to solidify its presence in Africa while exploring opportunities for growth in new territories. Despite challenges posed by the COVID-19 pandemic, Spur remains optimistic about its future prospects and is committed to delivering exceptional dining experiences to its customers across the continent.
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