Spur Corporation identifies the economic, environmental, social and governance matters that have the potential to most significantly impact the group’s ability to create sustainable value by executing on its strategic objectives. These material matters form the basis for the content of this integrated report.
The determination of these material matters starts with identifying relevant matters from information drawn from a range of sources, including:
- The group risk assessment document
- Management and board discussions
- Feedback from stakeholder interactions
- Sustainability and integrated reporting guidelines
These matters are then assessed according to the potential magnitude of their impact on the group’s ability to create value.
The expectations, interests and needs of the key stakeholders of the group are important inputs into the identification and significance of the group’s material matters. The group’s most material matters are shown in the table below.
Economic material matters are discussed in more detail in the strategy section.
Information regarding the importance of our social and environmental material matters, and the group’s strategic response to these, is available online on the group website here.
|Material matter||Importance||Strategy||More detail|
| Sustainable local
| Outlet and franchisee profitability is a critical focus area particularly given the current pressure on disposable
income. The group continually refines the local franchise
model to support profitability in changing markets and
|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.||Growing revenue/Sustainable business||here|
|Menu engineering||Ongoing menu engineering optimises sales mix, franchisee gross margins and product range. This enables the group to meet customers’ needs while supporting franchisee profitability.||Sustainable business||here|
|International expansion|| Growing the group’s brands in new markets grows the
group and its revenues, and diversifies its geopolitical risk across regions.
|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.
| Efficient use of resources
to reduce costs
| The rising cost of electricity and gas and concerns about
water scarcity make it imperative that outlets explore innovative ways to increase water and energy efficiency.
|Social: strategic and operational|
|Regulatory compliance||As a responsible corporate citizen, Spur Corporation needs to ensure that it stays aware of and complies with developing legislation.||Sustainable business|
|Health and safety||Ensuring the health and safety of employees, including franchisee employees, and customers is an important legal, ethical and reputational concern.||Sustainable business|
|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.||Sustainable business|
|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 amended dti Codes of Good Practice include subminima that we did not achieve and our B-BBEE rating reflects as non-compliant. Plans are in place to improve the group’s B-BBEE rating over the medium term.||Sustainable business|
|Strategic resource management||The group’s direct environmental impact is relatively small. However, the broader impact of the group and its franchisees’ outlets is significant and we support franchisees to manage their environmental impacts responsibly.||Sustainable business|
|Procurement||Spur Corporation has a responsibility to ensure that raw materials are sourced from sustainable and ethical suppliers.||Sustainable business|
|Operational resource management||The group supports environmentally responsible franchisees through the use of the green operations report and through the monitoring of environmental key performance indicators. The green operations report is an annual assessment of franchisees’ compliance with the group’s environmental guidelines. The report also assists franchisees to identify opportunities to implement or improve environmental initiatives, often resulting in cost savings through reduced electricity and water consumption and waste reduction, as well as by opening new revenue streams linked to income generated through recycling.||Sustainable business|