Restaurant turnover keeps rising for Spur Corp, with iconic Spur brand leading sales in SA

The Spur Corporation has posted a 13.8% increase in revenue to R2 billion for the half year ended 31 December 2024.

Franchised restaurant turnover was up 10% to R5.9 billion over the six-month period.

The brands owned by the restaurant franchise group include Doppio Zero, Panarottis Pizza Pasta, RocoMamas and John Dory's.

The iconic Spur brand accounted for 64% of the group’s South African restaurant sales, followed by RocoMamas and Panarottis each representing 10% of local sales. The international restaurants comprise 9% of group restaurant sales.

The group said the growth in their speciality dining portfolio was accelerated with the acquisition of a 60% interest in Doppio Collection, effective from 1 December 2023. 

Headline earnings per share (HEPS) rose 11.8% to 178.35 cents a share.

Spur Corporation declared an interim dividend per share of 106 cents, an increase of 11.6%.

Stephen Grootes interviews Spur Corporation CEO Val Nichas, and asks whether their rising numbers reflect that people are still eating out despite complaining about a cost of living crisis.

While South Africans love to celebrate in restaurants, consumers are still taking a bit of strain, says Nichas.

"If I look at our foot count in some months during this last reporting period, I'd say people are constrained. But our restaurants are positioned in economically viable areas..."

Val Nichas, CEO - Spur Corporation

"...so I think there IS spend but but also some strain, especially if we look at the high percentage of redemption rates for vouchers. Everyone's looking for a little bargain."

Val Nichas, CEO - Spur Corporation

Nichas says loyalty to their brands also plays an important role in the success of the franchise business.

"At least over 50% of our transactions are from our loyal customers; they have a high frequency rate."

Val Nichas, CEO - Spur Corporation

"Of course as you open new stores and you market differently you attract some new users as well, so we like to do both."

Val Nichas, CEO - Spur Corporation

During the last six months of 2024, the group opened 21 new restaurants in South Africa and closed five.

It plans 47 new restaurants in SA and 13 internationally in the 2025 financial year.

Scroll up to the audio player to listen to the interview