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
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