Business

Fast food giant opening new restaurants across South Africa

Luke Fraser

 ·21 Aug 2025

Despite the strained consumer operating environment, the Spur Corporation has opened more restaurants in South Africa and internationally, with more in the pipeline.

In its financial results for the year ended 30 June 2025, the South African Restaurant Market report indicated that the South African Reserve Bank’s interest rate cuts have increased consumer spending. 

However, Spur said the reductions in borrowing costs and food inflation have not significantly increased disposable income and discretionary spending. 

On top of its traditional competitors, the group is now facing challenges from supermarket retailers’ product offerings. 

The group said its franchisees and operational teams have remained resilient despite market conditions.

The group said it achieved a solid trading performance with franchised restaurant sales increasing by 8.3% over the prior year.

It focuses on high-quality family dining experiences, supported by AI-driven data analytics for targeted marketing to its customer loyalty clubs.

The group added that its franchisees have demonstrated their commitment to its refreshed brand, with 51 outlets now trading under the new concept. 

Panarottis’ repositioning also gained traction, buoyed by positive customer feedback. Currently, 55% of the Panarottis network displays the updated store design. 

John Dory’s has also embraced the approach,  with three restaurants now operating in their refreshed format, and five more are transforming. 

At the end of June 2025, Spur traded through 724 restaurants in 14 countries, an increase from the 701 in the previous period. 

In South Africa, 31 restaurants were opened during the year, but 15 restaurants were closed. Internationally, the group opened 15 new restaurants and closed eight restaurants.

All of the group’s brands – Spur, John Dory’s, Panarottis, RocoMamas and Speciality Brands – increased store count in the past year.

The group continues to secure key trading sites and plans to open 42 new restaurants in South
Africa and 14 internationally for the 2026 financial year.

Financial performance and outlook

The group said that the trading performance led to continued strong growth in revenue and profit. 

Group revenue jumped 11.2% to R3 863.2 million (2024: R3 473.6 million). The revenue growth was boosted by higher sales in the retail company stores, which rose by 46.3%. 

This was positively impacted by the contribution from the Doppio Collection restaurants and a 10.1% increase in sales from the manufacturing and distribution division.

Improved franchised restaurant turnovers of 8.3% over the prior year also boosted revenue growth. 

Group profit before income tax increased by 17.5% to R401.7 million (2024: R341.7 million). Group headline earnings also increased by 16.5% to R275 million (2024: R236.1 million). 

With this, the group increased its total dividend by 40% to 299 cents per share. 

• Franchised restaurant turnovers up 8.3% to R11.5 billion
• Revenue up 11.2% to R3.9 billion
• Profit before income tax up 17.5% to R401.7 million
• Earnings per share up 17.2% to 337.51 cents
• Headline earnings per share up 16.8% to 339.88 cents
• Dividend per share up 40.4% to 299.00 cents

“With a diverse portfolio of 10 restaurant brands, the group is poised to capture market share across various categories, regions and countries,” it said.

“While trading conditions will remain challenging in the short to medium term owing to pressure on consumer spending in the weak macro-economic climate, the group is positive on the company’s longer-term prospects.”