Spur FY HEPS surges 81%

The Spur Group, a prominent restaurant group encompassing well-known brands like Spur, RocoMamas, Panarottis, and recent acquisitions like Doppio Zero, Piza e Vino, and Modern Tailors, has recently announced a remarkable 81 per cent increase in headline earnings. The group's revenue surged by 23 per cent to an impressive R9.5 billion, primarily driven by the outstanding performance of the Spur brand, which saw an almost 25 per cent growth in sales. Val Nichas, the CEO of Spur, sat down with CNBC Africa to delve into the details of this exceptional financial outcome and shed light on the strategies behind the success. Nichas attributed much of the achievement to the resilience and appeal of the Spur brand, emphasizing the significance of maintaining a strong brand identity, especially during challenging economic times. He highlighted the continuous support of loyal customers as a driving force behind the brand's prosperity, along with a post-pandemic market recovery, increased tourism, and robust marketing efforts. Beyond brand strength, Nichas discussed the group's strategic preparation for unexpected challenges, such as load shedding, by ensuring that 95 per cent of their restaurants are equipped with alternative power sources like generators, solar, or battery-operated systems. While acknowledging the additional costs associated with running these power supplies, Nichas expressed confidence in the long-term sustainability and operational necessity, underscoring the importance of adapting to prevailing conditions in the business landscape. Moreover, Nichas addressed the pervasive issue of inflation within the food industry, detailing the effects of escalating oil prices and recent supply chain disruptions, such as the chicken shortage crisis. He emphasized the need for innovative solutions and close collaboration with supply chain partners to effectively manage costs and navigate the challenges posed by fluctuating food prices. Looking ahead, Nichas projected a continued focus on growth opportunities in Africa, where the group aims to expand its presence and capitalize on the youthful market and growing interest in their brands. While affirming South Africa's central role in their operations, Nichas highlighted the strategic importance of partnerships in Africa and the potential for further development in the region. The Spur Group's impressive financial performance and strategic outlook underscore its resilience and commitment to sustained success in the competitive restaurant industry.