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INTEGRATED REPORT 2017

Passionate people building great brands

Investment case

Spur Corporation has grown into one of South Africa’s most recognised brands over its 50 years of operation. Key group attributes include strong revenue and operating profit growth, efficient capital management and a stable dividend policy.

Spur Corporation’s strategy aims to create sustainable returns for its providers of financial capital through:

  • Growing revenue by growing the footprint of existing brands, expanding into new territories and acquiring new businesses.
  • Maintaining a sustainable business, supported by a responsive and agile franchise model, and the ongoing monitoring of the broader social and environmental risks
    and opportunities faced by the group.

The group’s strategy is discussed in more detail here.


STRONG FINANCIAL PERFORMANCE

Spur Corporation’s key priorities that support the effective implementation of strategy and leverage the group’s competitive advantage are outlined below.

WELL-ESTABLISHED AND DIVERSE BRANDS SERVING A FULL RANGE OF CUSTOMERS

  • Exposure to three of South Africa’s largest and most well-established restaurant chains that service the country’s fast-growing middle class: Spur Steak Ranches, Panarottis Pizza Pasta and John Dory’s Fish Grill Sushi
  • RocoMamas is a fast-growing Smashburger brand that offers
    a niche, fast-casual dining experience
  • Captain DoRegos extends the group’s franchise interests in the lower-LSM sector and fast-food market
  • The Hussar Grill and Casa Bella add an upmarket
    steakhouse and wood-fired pizza and pasta chain to the group’s brand portfolio
  • Customer loyalty programmes across brands offer value for money in family-friendly environments, locally and internationally

LOCAL AND INTERNATIONAL OPERATIONS

  • The group’s presence is predominantly in South Africa, but extends to Australia, New Zealand, Mauritius, 12 countries
    in Africa and two in the Middle East
  • Sustained focus on new business developments and on expanding Spur Corporation’s footprint in high-growth markets across Africa, the Middle East and Australasia
  • New store formats such as Spur Grill & Go offer untapped market growth in sites and locations previously not targeted
    by the group

STRONG AND COMMITTED LEADERSHIP

  • The directors and senior executives – many of whom started their careers working in individual outlets – guarantee industry expertise and an operational style reflective of the fundamentals on which the group was built: people, entrepreneurial flair, customer focus, operational excellence, empowerment and learning, and prudent and considered decision-making

PROCUREMENT, MANUFACTURING AND DISTRIBUTION

  • Spur Corporation’s procurement function ensures food safety, quality and a stable supply
  • Relationships with outsourced logistics service providers, suppliers and franchisees are sustainably managed

GROUP SERVICES AND MARKETING SUPPORT

  • The group’s marketing department provides marketing and promotional services to franchisees
  • Training and corporate support services are provided to franchisees to ensure the delivery of a consistently high-quality product in line with each brand promise
  • Ongoing identification, assessment, management and monitoring of key business risks as part of the group’s day-to-day operations at various levels of management
  • Considering the current volatility of the food and retail sector, the board remains risk averse, and long-term growth opportunities are assessed by monitoring the performance
    of existing operations against current industry trends