Captain DoRegos was negatively affected by the intense economic pressure evident in the lower-income consumers that represent its target market, and by increased competition. Total restaurant turnover declined by 13.2% to R143.0 million in 2015 (2014: R164.8 million). Existing store sales fell by 20.2%.
16 non-performing outlets were closed during the year while 12 new outlets were opened. We continue to refine the brand’s business model and to assist franchisees in having stable businesses where necessary. The new point of sale system being rolled out allows tracking of sales mix and other business intelligence. The menu has been revised to improve in store efficiencies and to better address the needs of our target market. Training was integrated into Spur Corporation structures and we now have three dedicated training outlets.
We also restructured the operations team supporting the brand to maintain the division’s margin in the context of lower revenue and rolled out a new store design that reduced set-up costs.
Our focus will be on maintaining product quality, improving service, standardising the brand’s look and feel, focusing on value-added campaigns and introducing new quality products.