South Africa’s favourite food chains opening more stores in South Africa

The Spur Corporation continues to open more stores, with the group’s total number of stores increasing to 726 in 15 countries by the end of 2024.

This marks a notable increase from the 687 restaurants in December 2023 and the 701 restaurants in 2024.

The group said that 21 restaurants were opened the six months ended December, comprising six Spurs, six Panarottis, one John Dory’s, three RocoMamas, three Doppio Zero, one Piza e Vino and one Modern Tailors.

This brought the total South African restaurant footprint to 619 restaurants. However, five restaurants were closed in South Africa in the period.

The group also opened 12 new restaurants in the rest of Africa, bringing its international store network to 107.

However, three restaurants, including two RocoMamas in Saudi Arabia, closed during the period as the group exited the underperforming region.

The group noted that the global macro-environment, shaped by geopolitical tensions, political uncertainty, and supply chain challenges, continues to pressure the economies of African countries.

The group highlighted several currency devaluations against the rand in certain African markets, such as Ghana, Nigeria and Zambia.

Looking solely at South African restaurants, the group increased the number of stores by over 20 from December 2023 to December 2024.

Spur (+7), Panarottis (+10), and Doppio Zero (+5) drove this. The group also added additional restaurants at Casa Bella, Modern Tailros, and RocoMamas.

However, several restaurants still saw their total numbers remain flat or decline, such as John Dory’s, Niko’s and Piza e Vino.

Financials

When it comes to the financials for the six months ended 31 December 2024, the group said that total restaurant sales for the six months increased by 10.0% to R5.9 billion.

The growth in the speciality dining portfolio was accelerated following the acquisition of a 60% interest in the Doppio Collection, effective 1 December 2023.

The Doppio Collection restaurant sales for the six months contributed R350.8 million to total group restaurant sales compared to R66.7 million for one month in 2023.

When excluding the contribution from the Doppio Collection, total restaurant sales jumped by 4.8% for the period.

With its size in its overall restaurant portfolio, 64% of the group’s South African restaurant sales followed by RocoMamas and Panarottis, each representing 10% of South African sales.

The group added that the Panarottis’ small-town strategy has contributed to the double-digit growth over the past two reporting periods, with high levels of franchisee interest for new restaurants/

Marketing and product changes at RocoMamas have also yielded good results, with like-for-like restaurant sales growing by 6.9%.

The group, however, did stress that the macroeconomic environment is not favourable. Despite two interest rate cuts in the period, cost of living constrants continue to limit general household spend.

It said that the reduction in borrowing costs and food inflation was not sufficient to increase disposable income and discretionary spending.

Although R43 billion was withdrawn from savings accounts via the two-pot system over the period, the additional funds were applied to priority areas like debt reduction.

Nevertheless, the group still saw revenue increase by 13% to R2 billion, while gross profit increased by 19.8% to R639 million.

The group’s basic earnings per share increased by 12.1% to 178.84 cents per share, with the group increasing its interim dividend per share by 11.6% to 106 cents per share.