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INTEGRATED REPORT 2017

Passionate people building great brands

Spur steak ranches

people with a taste for life

Spur Steak Ranches is a family-orientated chain of steakhouses that has been part of the South African family since 1967. We promise a warm, relaxed, family-friendly environment, generous portions of great tasting food and a hearty helping of quality.

 


  • PROMOTIONS

  • – Great-tasting Mondays – The Classic R50 Burger
    – 50th Birthday Waffle offer at R19.67
    – Winter warmers – cosy up with a cuppa
  • – Spur Unreal Breakfast

PERFORMANCE SCORECARD


Performance overview

While trading conditions remained tight in the first part of the year, trading was positive up until March 2017. Consumer confidence fell sharply after that point as political friction increased and economic conditions deteriorated. Certain Spur franchisees were also directly impacted by the fallout following the altercation between two customers in a Spur restaurant in Johannesburg. Spur Corporation assisted these franchisees where necessary by temporarily reducing the franchise and marketing fees to support their businesses.

Total restaurant turnover decreased by 2.1% to R4.48 billion (2016: R4.58 billion) and existing restaurant turnover declined 3.4%.

We refined our specials to more effectively reward customer loyalty and support franchisee profitability in an increasingly competitive market. Our new menu, which launched in July 2017, includes a “back to basics” focus that emphasises the authenticity and “homegrown” feel that has carried Spur Steak Ranches to where it is today. This includes a return to in-store baking of desserts and the preparation of other Spur favourites at each restaurant. The Spur Family Card loyalty programme performed well, with active Spur Family Card users reducing slightly to 1.77 million (2016: 1.92 million). More than 20 companies incentivised and rewarded customers and employees with R11.8 million in value through Spur eGift Cards during the year.

Spur Corporation provides ongoing training to franchisee staff to ensure service excellence and food quality continue to meet the high expectations of our customers. The 2017 Sunday Times Generation Next survey recognised Spur as the “Coolest Place to Eat Out” among South Africa’s youth for the fifth year in a row and the brand also made the Top Five for “Coolest Brand Slogan”.

The focus during the year was on store revamps and implementing the new look and feel that we started rolling out last year, although we opened five new stores during 2017. Twenty-one restaurants were revamped during the year at a total franchise investment of R28.3 million. We opened three new Spur Grill & Go outlets and continue to refine the model for trading conditions in their high-traffic locations, which differ from our traditional business.

The smaller format Spur model is now the default model to reduce the initial investment required and ongoing running costs and support franchisee return on investment.

Strategic outlook

In the year ahead we will retain our emphasis on the authenticity and quality of our products by focusing on freshness and enhancing our “homemade” credentials. We plan to improve our gains in the breakfast market through innovation and top-up offerings. We will continue the process of retraining all restaurant management and measuring the progress of management through the modular training programme. The roll-out of “Grill & Go” and smaller Spur concepts in less densely populated towns will also continue. Corporate operations managers will be re-training and re-focused to ensure that we meet the standards set by our strategic intentions and initiatives, and support growth in market share.

We also plan to open 10 new stores in 2018.