SPUR CORP. LIMITED INTEGRATED REPORT 2015

Material Matters

Spur Corporation’s ability to create long-term sustainable value depends on how it responds to material risks and capitalises on opportunities in its operating environment.

The table below shows the economic, environmental and social matters the group believes are most material to the business
– the matters that most substantively impact the group’s ability to achieve its dual strategic objectives of growing revenue and maintaining a sustainable business.

These material matters were derived from a range of sources, including:

  • Output of the annual group risk assessment
  • Management and board discussions
  • Feedback from stakeholder interactions
  • Sustainability and integrated reporting guidelines
Each economic material matter is discussed in more detail as part of the strategy section from here, with social and environmental information available online.

    MATERIAL MATTER COMMENT MORE DETAIL
Sustainable local
franchise model
Outlets need to be profitable to be attractive to franchisees. This requires constant refinement of the franchise model to maintain profitability in changing markets. here   
Store design and
specifications
Intelligent store design reduces set up costs, running costs and labour costs. It can increase efficiency and reduce the environmental impact of an outlet. Smaller format stores increase the range of potential locations available. here   
Menu engineering Menu engineering optimises sales mix, food cost and product range. here   
International expansion Growing the group’s brands in new markets grows the group and its revenues, and diversifies its geopolitical risk across regions. here   
Product responsibility
(procurement)
Food quality and food safety are critical considerations in the restaurant industry. We have a number of initiatives in place to ensure that our food is of a consistent high quality. here   
  Efficient use of resources
to reduce costs
The rising cost of electricity and gas, and the increased incidence of load-shedding make it imperative that outlets explore innovative ways of increasing energy efficiency. here   
Regulatory compliance As a responsible corporate citizen, Spur Corporation needs to ensure that it stays aware of developing legislation.    
Health and safety Ensuring the health and safety of employees, including franchisee employees, and customers is an important legal, ethical and reputational concern.    
Customer service Excellent customer service, rewarding loyalty programmes and a dedicated customer service centre build brand loyalty and encourage repeat business.  
Community support Spur Corporation aims to make a positive and lasting difference in the lives of its communities through the activities of the Spur Foundation.  
Human capital and
skills development
Investing in the skills and personal development of employees and those of franchisees ensures the long-term success of the group and its brands.    
Transformation Spur Corporation is committed to the principle of transformation. The new dti Codes of Good Practice will result in a fall in the B-BBEE rating of the group.    
Strategic resource
management
While the group’s direct environmental impact is relatively small, the broader impact of the group and its franchisees’ outlets is significant and should be managed responsibly.    
Procurement Spur Corporation has a responsibility to ensure that raw materials are sourced from sustainable and ethical suppliers.
Operational resource
management
The group supports environmentally responsible franchisees through the use of the green operations report and monitoring of environmental key performance indicators (“KPIs”).  


STAKEHOLDER MATRIX

Spur Corporation subscribes to the inclusive approach to stakeholder engagement as recommended by King III. Stakeholders are defined as any individual or group that has an impact on, or is affected by, the group’s operations. The group aims to engage respectfully with stakeholders to understand their needs and concerns, and address these where possible.

    ENGAGEMENT KEY CONCERNS RELATED MATERIAL MATTER STRATEGIC RESPONSE

HR road shows

Intranet

Company values

Open-door policy

Fair remuneration

Career opportunities

Transformation

Skills development

Human capital and skills development

Transformation

Health and safety

HR policies ensure employees are appropriately incentivised and remunerated, and have the opportunity to develop and progress in their careers.

The group’s transformation strategy supports the upliftment of historically disadvantaged individuals.

Investment in skills development is ongoing.

Analysts’ presentations

Annual general meeting

SENS

One-on-one meetings

Website

Prudent capital allocation

Return on investment

Transformation

Sustainable local franchise model

International expansion

Regulatory compliance

Transformation

Management’s interests are aligned with shareholders’ through the long-term incentive programme.

The management team has experience in the restaurant industry and a conservative approach to international expansion.

Road shows

Extranet

Advisory committees

Restaurant visits

Conversation cafés

Return on investment

Ongoing support

Sustainable local franchise model

Store design and specifications

Menu engineering

Efficient use of resources to reduce costs

Operational resource management

Procurement

Operations management teams interact with franchisees on an ongoing basis to offer support in running a successful business.

The group offers training to franchisee employees on all aspects of running and managing a profitable restaurant.

The outsourced distribution model enhances procurement efficiencies, while maintaining food safety standards and consistent product quality.

Day-to-day interaction

Supplier audits

Assessments

Meetings

Fair payment terms

Certainty of supply

Fair treatment

Strategic resource

management

Procurement

The procurement team interacts with suppliers on a day-to-day basis to ensure a shared understanding of suppliers’ concerns and group policies.

Suppliers to the group operate according to normal contractual terms.

Customer care centre

Social media

Loyalty programmes

Spur Secret

Tribe

Totem magazine

Excellent food

Great service

A welcoming family experience

Health and safety

Customer service

Community support

Operations management inspections cover food quality, customer service and restaurant management.

Stringent food safety standards are applied to suppliers and the group’s manufacturing facilities.

The group takes resolving complaints seriously and has robust and formalised complaint handling procedures in place, and a 24-hour customer care line.

The ongoing revamp programme ensures outlet design and specifications are kept up to date and in line with group quality standards.

 

Corporate social investment

Outdoor events

Ongoing support

Customer service

Community support

Corporate social investment (“CSI”) initiatives are run through the Spur Foundation and aim to provide ongoing support for underprivileged youth.

The group’s sponsorship of a multitude of outdoor events encourages a healthy and fun lifestyle.