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.<\/p>\n
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.<\/p>\n
Sales from franchised restaurants in South Africa decreased by 22.3%, with sales from international restaurants decreasing by 16.7% in rand terms.<\/p>\n
As local restaurant sales comprise 88.5% of the group\u2019s total restaurant sales, the trading restrictions in South Africa had the biggest impact on the group\u2019s trading performance, it said.<\/p>\n
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.<\/p>\n
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.<\/p>\n
The effect on its restaurant brands including Spur Steak Ranches, Panarottis, The Hussar Grill, RocoMamas, and Nikos, has been the following:<\/p>\n
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.<\/p>\n
Franchised restaurant sales for the year ended 30 June 2020 (% change)<\/strong><\/p>\n 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:<\/p>\n Franchised restaurant trading in South Africa<\/strong><\/p>\n 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.<\/p>\n Chief executive, Pierre van Tonder, said: \u201cAfter the limited relaxation of the trading restrictions following the hard lockdown in April, trading has proved particularly challenging.<\/p>\n “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.\u201d<\/p>\n \u201cIn 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.\u201d<\/p>\n 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.”<\/p>\n Spur said that during the year, 21 restaurants were opened in South Africa -most of which opened prior to the lockdown – and 17 closed.<\/p>\n At 30 June 2020, the group\u2019s restaurant base comprised 631,outlets, including 84 operating outside of South Africa.<\/p>\n\n\n
\n Restaurant<\/th>\n Total sales (12 months to June 2020)<\/th>\n Total sales (8 months to February 2020)<\/th>\n Total sales (May 2020)<\/th>\n Total sales (June 2020)<\/th>\n<\/tr>\n \n Spur Steak Ranches<\/td>\n (22.5%)<\/td>\n 6.1%<\/td>\n (91.2%)<\/td>\n (87.2%)<\/td>\n<\/tr>\n \n Pizza and Pasta (Panarottis and Casa Bella)<\/td>\n (24.7%)<\/td>\n 3.1%<\/td>\n (88.9%)<\/td>\n (82.8%)<\/td>\n<\/tr>\n \n John Dory’s Fish Grill and Sushi<\/td>\n (24.5%)<\/td>\n 5.9%<\/td>\n (95.7%)<\/td>\n (89.0%)<\/td>\n<\/tr>\n \n The Hussar Grill<\/td>\n (19.6%)<\/td>\n 11.9%<\/td>\n (99.8%)<\/td>\n (97.5%)<\/td>\n<\/tr>\n \n RocoMamas<\/td>\n (17.6%)<\/td>\n 6.8%<\/td>\n (52.9%)<\/td>\n (53.2%)<\/td>\n<\/tr>\n \n Nikos Coalgrill Greek<\/td>\n (19.1%)<\/td>\n 11.0%<\/td>\n (84.8%)<\/td>\n (73.1%)<\/td>\n<\/tr>\n \n Total South African operations<\/em><\/td>\n (22.3%)<\/em><\/td>\n 6.0%<\/em><\/td>\n (87.2%)<\/em><\/td>\n (83.6%)<\/em><\/td>\n<\/tr>\n \n Total International operations<\/em><\/td>\n (16.7%)<\/em><\/td>\n 4.0%<\/em><\/td>\n (73.2%)<\/em><\/td>\n (39.4%)<\/em><\/td>\n<\/tr>\n \n Total group<\/strong><\/td>\n (21.7%)<\/strong><\/td>\n 5.8%<\/strong><\/td>\n (85.7%)<\/strong><\/td>\n (79.0%)<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n
\n\n\n
\n Restaurant<\/th>\n Sit-down<\/th>\n Delivery \/ Take-out<\/th>\n Total trading<\/th>\n Total in SA<\/th>\n<\/tr>\n \n Spur Steak Ranches<\/td>\n 204<\/td>\n 6<\/td>\n 210<\/td>\n 298<\/td>\n<\/tr>\n \n Pizza and Pasta (Panarottis and Casa Bella)<\/td>\n 32<\/td>\n 24<\/td>\n 56<\/td>\n 91<\/td>\n<\/tr>\n \n John Dory’s Fish Grill and Sushi<\/td>\n 33<\/td>\n 3<\/td>\n 36<\/td>\n 52<\/td>\n<\/tr>\n \n The Hussar Grill<\/td>\n –<\/td>\n 5<\/td>\n 5<\/td>\n 22<\/td>\n<\/tr>\n \n RocoMamas<\/td>\n 59<\/td>\n 2<\/td>\n 61<\/td>\n 75<\/td>\n<\/tr>\n \n Nikos Coalgrill Greek<\/td>\n 3<\/td>\n 3<\/td>\n 6<\/td>\n 9<\/td>\n<\/tr>\n \n Total<\/strong><\/td>\n 331<\/strong><\/td>\n 43<\/strong><\/td>\n 374<\/strong><\/td>\n 547<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n
\n