SPUR CORP. LIMITED INTEGRATED REPORT 2014

Operational reports

The Hussar Grill

Traditional Values Since 1964

The Hussar Grill has been operating since 1964 and has an excellent reputation in the Western Cape. It is a chain of premier grillrooms offering speciality grills, an upscale yet comfortable and inviting ambience and a comprehensive wine selection. The acquisition in January 2014 enabled the group to enter and effectively compete in the higher LSM upmarket steakhouse space. As part of the acquisition, the group also acquired three retail outlets trading in Camps Bay, Rondebosch and Green Point.

For the six months trading as part of the group, The Hussar Grill restaurants generated total sales of R29.1 million of which R15.0 million was generated by the company-owned outlets and is included in the group’s revenue. The retail division earned a profit before income tax of R2.4 million. The franchise division contributed R0.7 million to group revenue and R0.5 million to group profit before income tax.

The integration of the brand into the group has proceeded well and the existing restaurants have maintained their authenticity and popularity. A new menu was introduced in June 2014 and while some prices and wine list items changed, the core dishes and winning recipes that have made the brand so successful remain unchanged. The quarterly brand newspaper The Hussar Grill Chronicle showcases our products and provides customers with a sneak peek into the psyche of The Hussar Grill brand.

The Hussar Grill restaurants are owner managed and have a strong culture of ongoing training. Franchisees have welcomed the strong marketing and operational support received from Spur Corporation’s head office. To date, individual restaurants have managed their own procurement and now have the option of procuring through the group. There has been strong interest from the group’s existing franchisees in expanding the brand’s footprint.

Goals for 2015
Grow the existing business by between 8% and 10%
Open six new outlets, with at least two in Johannesburg