{"id":472176,"date":"2021-03-02T10:43:02","date_gmt":"2021-03-02T08:43:02","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=472176"},"modified":"2021-03-02T10:43:02","modified_gmt":"2021-03-02T08:43:02","slug":"south-africas-big-restaurant-franchises-take-a-beating-pin-hopes-on-drive-thrus-and-virtual-kitchens","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/472176\/south-africas-big-restaurant-franchises-take-a-beating-pin-hopes-on-drive-thrus-and-virtual-kitchens\/","title":{"rendered":"South Africa&#8217;s big restaurant franchises take a beating &#8211; pin hopes on drive-thrus and &#8216;virtual kitchens&#8217;"},"content":{"rendered":"<p>Spur Corporation, the owner of family franchise restaurant brands including RocoMamas and Nikos, on Tuesday (2 March) reported a 40.2% slump in revenue for the six months ended December 202, to R314.2 million.<\/p>\n<p>Revenue from the South African operations accounts for 95.3% of total group revenue. International revenue declined by 28.9%, it said.<\/p>\n<p>The global Covid-19 pandemic and the resultant national lockdown and trading restrictions in all countries of operation had a material impact on Spur Corporation&#8217;s business operations and financial performance, the group said.<\/p>\n<p>Spur Corporation total franchised restaurant sales across its local and international operations decreased by 29.5% to R2.9 billion, with South African franchised restaurant sales declining by 31.0% for the period.<\/p>\n<p>International franchised restaurant sales, for the same period, decreased by 17.3%, it said.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/03\/Spur1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-472180 alignright\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/03\/Spur1.png\" alt=\"\" width=\"314\" height=\"564\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/03\/Spur1.png 314w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/03\/Spur1-167x300.png 167w\" sizes=\"auto, (max-width: 314px) 100vw, 314px\" \/><\/a><\/p>\n<p>After the initial hard lockdown last year, restaurants were allowed to resume a full sit-down service from 29 June 2020, subject to strict social distancing protocols,\u00a0 restrictions on the number of customers and a ban on the sale of alcohol.<\/p>\n<p>The impact of the curfew in South Africa on evening restaurant trading hours is reflected in dinner sales for the group declining by 39%, and by 48% for the restaurant brands of The Hussar Grill, Casa Bella and Nikos in the period.<\/p>\n<p>Group alcohol sales were also 39% lower for the period as a result of the ban on sale of all alcoholic drinks for part of the period.<\/p>\n<p>Improved trading conditions were experienced from September 2020 through to November 2020 as the relaxation of the national curfew extended trading hours and alcohol sales were permitted, Spur said.<\/p>\n<p>Sales for the months of September and November 2020 declined by 26.2% and 21.0% respectively in South Africa relative to the prior year, with October 2020 being a particularly strong trading month in South Africa, trading behind the prior year by only 7.2%.<\/p>\n<p>The second wave of Covid-19 infections in South Africa resulted in government&#8217;s reintroduction of a national curfew and restrictions on social activity in December 2020.<\/p>\n<p>The imposition of the adjusted level 3 lockdown regulations in late December impacted restaurant sales, with the national curfew again limiting trading hours.<\/p>\n<p>&#8220;Trading showed a marked improvement in February 2021, however, following the partial lifting of restrictions which extended our trading hours to 22h00 and allowed for the sale of alcohol in our restaurants,&#8221; Spur said.<\/p>\n<p>Sales for February 2021 were at 82% of the prior year, with Spur and RocoMamas performing best.<\/p>\n<p>In South Africa, 17 restaurants were opened and 18 closed, while seven restaurants were opened and four closed internationally during the period.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/03\/Spur.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-472178\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/03\/Spur.png\" alt=\"\" width=\"648\" height=\"580\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/03\/Spur.png 648w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/03\/Spur-300x269.png 300w\" sizes=\"auto, (max-width: 648px) 100vw, 648px\" \/><\/a><\/p>\n<p>Looking ahead, Spur said that president Ramaphosa&#8217;s announcement on Sunday, 28 February, of the relaxation of lockdown restrictions in South Africa to alert level 1 with effect from 1 March 2021, is a welcome development for the group, its franchisees and customers.<\/p>\n<p>The resumption of normal trading hours, without being limited by a curfew, and the increase in permitted restaurant seating capacity are expected to have a positive impact on trading in South Africa for all brands.<\/p>\n<p>The group&#8217;s management aims to adopt a strategic direction which will steer the business towards a common purpose. The main drivers to expand the current brand experiences are transformation and innovation.<\/p>\n<p>Evidence of this innovation is the planned extensions to trading formats, with the introduction of a RocoMamas drive-thru, Spur drive-thru-clip-on, a Bento&#8217;s drive-thru click &amp; collect and a specialty restaurant extension.<\/p>\n<p>Seven of the virtual kitchen (VK) brands, launched during lockdown and which have been trialled since May 2020, will move into the next phase of testing.<\/p>\n<p>In addition to revamps and renovations planned for the 2021 calendar year, new restaurant development will include an estimated eight to 10 outlets locally, it said.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/03\/SpurSharePrice.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-472182\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/03\/SpurSharePrice.png\" alt=\"\" width=\"797\" height=\"429\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/03\/SpurSharePrice.png 797w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/03\/SpurSharePrice-300x161.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/03\/SpurSharePrice-768x413.png 768w\" sizes=\"auto, (max-width: 797px) 100vw, 797px\" \/><\/a><\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/trending\/419225\/heres-how-spur-rocomamas-and-other-restaurants-have-fared-at-various-stages-of-lockdown\/\" target=\"_blank\" rel=\"noopener\">Here\u2019s how Spur, RocoMamas and other restaurants have fared at various stages of lockdown<\/a><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Spur Corporation, the owner of franchise restaurant brands including RocoMamas and Nikos, on Tuesday (2 March), reported a 40.2% slump in revenue for the six months ended December 202, to R314.2 million.<\/p>\n","protected":false},"author":10,"featured_media":262753,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26,14337,12438,14335],"class_list":["post-472176","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline","tag-nikos","tag-rocomamas","tag-spur-corporation"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/472176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=472176"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/472176\/revisions"}],"predecessor-version":[{"id":472224,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/472176\/revisions\/472224"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/262753"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=472176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=472176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=472176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}