SPUR CORPORATION LIMITED Share code : SUR ISIN : ZAE000022653 15 November 2001 (Embargo: 10:00 a.m.) Spur Steak Ranches turnover is up 13% for July-October compared to the same period last year, the restaurant franchise Group reported at its AGM today. (15 November) "Business has been encouraging," said Group managing director Pierre van Tonder, commenting on the four months of trading since the June financial year-end. "When disposable income is limited, consumers choose the brands they trust and outlets where they know they'll get value for money." Van Tonder said the food sector was extremely competitive, but the Group had planned carefully for the coming holiday season; value-for-money promotions were on the menu for Spur and Panarottis. Several well-located new outlets were ready for business, including a Halaal Spur in Fordsburg; Steak Ranches in Jeffrey's Bay and Shelly Beach; and a combined Spur and Panarottis in the Gateway Centre in KwaZulu Natal. The popular Colorado Spur in Gardens, Cape Town, is about to reopen in Kloof Street under new management. Spur was also reaping the benefits of the Howzit TV and radio ad campaign. "The objective of the new campaign is to show the spirit of Spur, to emphasise that Spur is the family restaurant for all South Africans," said Spur executive chairman Allen Ambor. "The response has been very positive and it's a campaign that's clearly appealing to many South Africans." A new ad campaign was also targeting Panarottis as the leading SA pizza/pasta brand. Newly appointed agency, The Jupiter Drawing Room, has created a TV campaign to market Panarottis pizza as accessible, fun food appealing to all members of the family. "Advertising should be a window to the business," said Ambor. "The new campaign not only broadcasts that Panarottis has really good food, but also sends out a clear message that Panarottis people are really passionate about pizza. They deliver on what is promised." Panarottis has grown to 54 outlets countrywide. The Busta's brand - offering burgers, ribs and other popular takeaways - was also expanding steadily. There are currently 28 stores operating countrywide from Total La Boutique outlets on filling station forecourts or stand-alone shops. A further 12 stores should open by June next year. The Kelseys brand - two upmarket restaurants specialising in fine dining and excellent service - is also in the spotlight. The Cape Town outlet in the Cullinan Hotel has been revamped with a new menu and fresh, modern d cor. It's optimally positioned to retain a strong tourist clientele and make inroads into the corporate market. The location is ideal, said van Tonder, as the Foreshore is enjoying a new lease of life with the Conference Centre, V&A canal development, and several financial services groups opening their headquarters. Offshore expansion has continued with the opening of the Cougar Steak Ranch in Bathurst, Australia. The Group now boasts four restaurants Down Under - three Steak Ranches, and one Panarottis pizza / pasta store. These New South Wales outlets are all a joint undertaking with Spur's Australian equity partners, the rugby league club Penrith Panthers. "We have been encouraged by the Cougar Steak Ranch turnover," said van Tonder. "There's a strong possibility of a further two or three Spurs opening in Australia within the next financial year; however the necessary demographics and business plans will be prudently evaluated. "The two Irish outlets- in Dublin and Limerick - are generating turnover in line with expectations." Spur Head Office and franchisees are also reaping the benefits of IT investment. Spur has developed a multi-server environment and 250 stores have been upgraded to Windows-based Pilot Softwarer systems. "Spur has installed a SQL data warehouse, and the information derived is of enormous benefit to us at Head Office and for our franchisees," says van Tonder. "We launched our franchisee Extranet in May this year, enabling each store to access relevant marketing information as well as crucial financial data needed to correctly plot and budget." Van Tonder said franchisees would continue to face new challenges and tough competition in the year ahead, but there were also many opportunities. "To succeed you need to be very focused; to grow innovative brands in your stable; and challenge the way you do business. Communicate with your customer, keep up with global trends such as eCommerce, and ensure that a visit to your outlet is a memorable, fun experience for the customer." Ends Issued by: Meropa Communications Judy Bryant (021) 683 6464 083 286 7168 On behalf of: Spur Corporation Contact: Allen Ambor Pierre van Tonder Executive Chairman Group Managing Director Spur Corporation Spur Corporation (021) 462-1293 (021) 462-1293