Here’s how Spur, RocoMamas and other restaurants have fared at various stages of lockdown
Spur Corporation has provided a sales update for the year ended 30 June, 2020, showing how the Covid-19 pandemic, and resulting lockdown in South Africa has impacted its restaurants around the country.
Spur said its total franchised restaurant sales declined by 21.7% to R6.0 billion for the year to 30 June 2020, as the Covid-19 global pandemic and resultant trading restrictions in all countries of operation hampered trading in the last four months of the financial year.
Sales from franchised restaurants in South Africa decreased by 22.3%, with sales from international restaurants decreasing by 16.7% in rand terms.
As local restaurant sales comprise 88.5% of the group’s total restaurant sales, the trading restrictions in South Africa had the biggest impact on the group’s trading performance, it said.
All restaurants ceased trading at the commencement of the nationwide lockdown on 27 March 2020. Restaurants could commence trading on a delivery-only basis from 1 May 2020, with collection service being permitted from 1 June 2020. Full sit-down service could be resumed on 29 June 2020.
The group said it allowed franchisees to reopen at their discretion under the various levels of trading restrictions, ensuring that franchisees made decisions that were in their best financial interests.
The effect on its restaurant brands including Spur Steak Ranches, Panarottis, The Hussar Grill, RocoMamas, and Nikos, has been the following:
Trading patterns of the group prior to March 2020, and the impact of the various levels of trading restrictions referred to above from May 2020.
Franchised restaurant sales for the year ended 30 June 2020 (% change)
| Restaurant | Total sales (12 months to June 2020) | Total sales (8 months to February 2020) | Total sales (May 2020) | Total sales (June 2020) |
|---|---|---|---|---|
| Spur Steak Ranches | (22.5%) | 6.1% | (91.2%) | (87.2%) |
| Pizza and Pasta (Panarottis and Casa Bella) | (24.7%) | 3.1% | (88.9%) | (82.8%) |
| John Dory’s Fish Grill and Sushi | (24.5%) | 5.9% | (95.7%) | (89.0%) |
| The Hussar Grill | (19.6%) | 11.9% | (99.8%) | (97.5%) |
| RocoMamas | (17.6%) | 6.8% | (52.9%) | (53.2%) |
| Nikos Coalgrill Greek | (19.1%) | 11.0% | (84.8%) | (73.1%) |
| Total South African operations | (22.3%) | 6.0% | (87.2%) | (83.6%) |
| Total International operations | (16.7%) | 4.0% | (73.2%) | (39.4%) |
| Total group | (21.7%) | 5.8% | (85.7%) | (79.0%) |
Restaurants trading at 30 June 2020 following the introduction of level 3 lockdown, from 1 June 2020 and the relaxation of trading restrictions to permit sit-down trade with effect from 29 June 2020:
Franchised restaurant trading in South Africa
| Restaurant | Sit-down | Delivery / Take-out | Total trading | Total in SA |
|---|---|---|---|---|
| Spur Steak Ranches | 204 | 6 | 210 | 298 |
| Pizza and Pasta (Panarottis and Casa Bella) | 32 | 24 | 56 | 91 |
| John Dory’s Fish Grill and Sushi | 33 | 3 | 36 | 52 |
| The Hussar Grill | – | 5 | 5 | 22 |
| RocoMamas | 59 | 2 | 61 | 75 |
| Nikos Coalgrill Greek | 3 | 3 | 6 | 9 |
| Total | 331 | 43 | 374 | 547 |
It is anticipated that the number of local restaurants trading will increase from 374 at 30 June 2020 to 495 by the end of July 2020, with most operating a full sit-down service, Spur said.
Chief executive, Pierre van Tonder, said: “After the limited relaxation of the trading restrictions following the hard lockdown in April, trading has proved particularly challenging.
“The restrictions on the sale of alcohol, and the curfew imposed on all South Africans, together with customer anxiety about contracting the virus and growing personal financial stress, has had a detrimental impact on our business.”
“In these times of financial hardship, our customers have understandably become extremely price sensitive and we are responding by providing customers with a compelling value proposition across all our brands. Our ongoing partnerships with third-party delivery services Mr D Food and Uber Eats have also been key in driving customer support.”
He said that the re-introduction of a total ban on alcohol sales in July together with the curfew will negatively impact trading. “The grim economic outlook for the country is also likely to result in a protracted period of recovery for the restaurant industry.”
Spur said that during the year, 21 restaurants were opened in South Africa -most of which opened prior to the lockdown – and 17 closed.
At 30 June 2020, the group’s restaurant base comprised 631,outlets, including 84 operating outside of South Africa.
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