SPUR CORP. LIMITED INTEGRATED REPORT 2015

Operational reports

Rocomamas

We're not normal

PERFORMANCE SCORECARD

Performance overview

The group acquired 51% of RocoMamas effective 1 March 2015. RocoMamas is categorised as a fast-casual dining restaurant and brings with it an unconventional social media marketing strategy designed to unnerve competitors and target the millennial customer.

Total restaurant turnover for the four months was R24.3 million and operating profit was R1.4 million. At acquisition, RocoMamas had five outlets in Gauteng. A further 4 were opened across Gauteng and KwaZulu-Natal to the end of June 2015. Outlets are planned for the Western Cape, North West Province, Eastern Cape and Free State in 2016. All nine outlets have generators in place to ensure trading can continue during power outages.

A training programme was implemented to enable franchisees to operate according to the standards set out by the group’s operations manual and modules. Our executive chef provides skills training to refresh current techniques and recipes, and to provide training on new menu items and promotions. We are in the process of centralising our procurement and supply chain to align with the Spur Corporation model and are standardising point of sales systems to improve business analysis.

Strategic outlook

The goal is to establish the brand’s presence across the country through a calculated expansion programme. Response to the brand so far has been exceptional. This is supported by viral marketing campaigns on social media, and the model’s low start-up, labour and running costs make it attractive for franchisees.