Spur grows FY HEPS 11.4%

Restaurant and franchise giant, Spur, has released its annual financial report, showcasing an impressive 11.4% jump in headline earnings per share. The company, known for its brands like Panarottis Pizza Pasta, RocoMamas, Doppio Zero, and Hussar Grill, attributed its success to higher revenues from franchised restaurants and increased sales from its manufacturing and distribution division. Val Nichas, the CEO of Spur, joined CNBC Africa to discuss the positive results and the challenges faced during the year. Nichas highlighted the difficulties encountered throughout the year but expressed gratitude to customers and franchisees for their support. Despite a tough second half, which saw pressure on consumer spending, Spur managed to navigate through the challenges and deliver strong financial performance. The CEO mentioned a good December season but acknowledged a tough April, reflecting the volatile trading patterns experienced by retailers. An interesting aspect of Spur's success was the revamping of its stores. Nichas mentioned the significant growth seen in revamped stores, with positive feedback from customers on the modern feel and improved facilities. The company revamped 19 stores, attracting new customers and enhancing the overall dining experience. Nichas emphasized the importance of refreshing and energizing brands to stay competitive in the market. Another key driver of Spur's growth was the opening of new stores, with around 62 stores launched across 15 markets. The acquisition of Doppio Zero also played a significant role in boosting retail sales within the company. Nichas highlighted the challenges of operating in a competitive market and the importance of providing innovative offerings to attract and retain customers. Nichas discussed consumer behavior and the impact of economic factors on spending patterns. With over 3.2 million loyalty program members, Spur pays close attention to consumer feedback and preferences. The CEO noted that consumers are value-conscious and price-sensitive, leading the company to focus on offering competitive pricing while maintaining quality and innovation. The conversation shifted to inflation and its impact on the business. Nichas explained how food inflation and supply chain challenges affected menu pricing but expressed optimism about the recent moderation in inflation rates. The CEO highlighted the importance of managing costs while providing value to customers in a competitive market. In discussing international markets, Nichas acknowledged the volatility in trading across Africa but remained optimistic about growth opportunities. Despite challenges such as currency devaluation and political unrest in some regions, Spur sees potential for expansion and is actively developing new stores in strategic locations. The interview concluded on a lighthearted note as Nichas jokingly offered to cover the dinner bill, reflecting the company's customer-centric approach and appreciation for loyal patrons. Overall, Spur's robust financial performance and strategic initiatives position the company for continued success in the competitive restaurant and franchise industry.