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INTEGRATED REPORT 2018

MATERIAL MATTERS

The content of this integrated report is based on Spur Corporation’s economic, environmental, social and governance material matters. These have the potential to most significantly impact the group’s ability to create sustainable value by executing its strategic objectives. The group’s most material matters are shown in the table below.

These material matters are identified from a range of sources, and are then assessed according to the potential magnitude of their impact on the group’s ability to create value. Inputs into the identification and significance of the group’s material matters include:

  • The group risk assessment document
  • Management and board discussions
  • Feedback from stakeholder interactions
  • Sustainability and integrated reporting guidelines
  • The expectations, interests and needs of key stakeholders

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 in the online sustainability supplements on the group website.

Material matter Importance Strategy More
detail
Economic: strategic
Sustainable local
franchise model
Restaurant 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 and attract franchisees. Sustainable business

here
Restaurant design and specifications Intelligent restaurant design reduces set-up costs, running costs and labour costs. It can increase efficiency and reduce the environmental impact of an outlet. Smaller format restaurants 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 bolsters the group, grows revenue and diversifies geopolitical risk across regions. Growing revenue

here
Product responsibility (procurement) Food quality and food safety are critical considerations in the restaurant industry. Spur Corporation has several initiatives in place to ensure that our food is of a consistently high quality. Sustainable business

here
Economic: operational
Efficient use of resources to reduce costs The rising cost of electricity and gas and concerns about water scarcity make it imperative that restaurants explore innovative ways to increase water and energy efficiency. Sustainable business

here
       
Social: strategic and operational
Regulatory compliance As a responsible corporate citizen, Spur Corporation needs to ensure that we stay aware of and comply with developing legislation. Sustainable business

 
Health and safety Ensuring the health and safety of group and franchisee employees, as well as customers is an important legal, ethical and reputational concern. Sustainable business

Customer service Excellent customer service, meaningful loyalty programmes and our dedicated customer service centre build brand loyalty and encourage repeat business. Growing revenue

Community support Spur Corporation aims to make a positive and lasting difference in the lives of our communities through the activities of The Spur Foundation. The Foundation’s initiatives also impact on food security. 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 our brands. Sustainable business

Transformation Spur Corporation believes that the long-term success of South Africa is critically dependent on transformation and the group is committed to the principles of B-BBEE. Transformation is monitored by the transformation committee and progress is measured against the dti Codes of Good Practice. Sustainable business

Environmental: strategic
Strategic resource management The group’s direct environmental impact is minimal. However, the broader impact of the group and our franchise restaurants and operations are significant, and we support franchisees to manage their environmental impact responsibly. Sustainable business

 
Procurement Spur Corporation has a responsibility to ensure that raw materials are sourced from sustainable and ethical suppliers. Sustainable business

Environmental: operational
Operational resource management The group supports environmentally responsible franchisees using the green operations report and 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 in identifying opportunities to implement or improve environmental initiatives, often resulting in cost savings through reduced resource (electricity and water) consumption and waste reduction. Sustainable business

 


Stakeholder matrix

Spur Corporation’s stakeholders are those individuals or groups that can affect or be affected by the group’s actions, objectives and policies. We understand that by engaging our key stakeholders we gain insights into their needs and concerns and can address these where possible. This also allows us to manage stakeholder expectations proactively, while ensuring that the group’s contributions as a responsible corporate citizen create significant shared value.

Engagement Key concerns Related material matter Our response
Stakeholder group: employees
  • Company values
  • HR road shows
  • Intranet
  • Open-door policy
  • Career opportunities
  • Fair remuneration
  • Skills development
  • Transformation
  • Human capital and skills development
  • Transformation
  • Health and safety
  • HR policies ensure employees are
    equitably remunerated and appropriately incentivised and can develop and progress in their careers.
  • Spur Corporation believes that the long-term success of South Africa is critically dependent on transformation and the group is committed to the principles of B-BBEE.
  • The group’s investment in skills development is crucial to ensure we support and harness the best from our human capital.
Stakeholder group: shareholders
  • Analysts’ presentations
  • Annual general meeting
  • SENS
  • One-on-one meetings
  • Website
  • Prudent capital allocation
  • Return on investment
  • Sustainable local franchise model
  • International expansion
  • Regulatory compliance
  • The group’s long-term incentive programmes are designed to ensure the alignment of management’s interests with those of shareholders.
  • The management team has experience in the restaurant industry and a conservative approach to international expansion.
Stakeholder group: franchisees
  • Advisory committees
  • Extranet
  • Restaurant visits
  • Road shows
  • Conversation cafés
  • Ongoing support
  • Return on investment
  • Sustainable local
    franchise model
  • Restaurant design and specifications
  • Menu engineering
  • Efficient use of resources
    to reduce costs
  • Operational resource management
  • Procurement
  • Product responsibility
  • 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. This includes training of franchisee management which emphasises the importance of providing excellent customer service.
  • The outsourced distribution model enhances procurement efficiencies, while maintaining food safety standards and consistent product quality.
Stakeholder group: suppliers
  • Day-to-day interaction
  • Assessments
  • Meetings
  • Supplier audits
  • Certainty of supply
  • Fair payment terms
  • Fair treatment
  • Strategic resource management
  • Procurement
  • Product responsibility
  • 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.
  • Franchised restaurants in the Spur Corporation group purchase significant quantities of raw materials and we aim to ensure our suppliers share our commitment to sustainable practices.
       
Stakeholder group: customers and future customers
  • Customer care centre
  • Loyalty programmes
  • Mobile applications (John’s Club app and Spur Family app)
  • Social media
  • Spur Secret Tribe
  • E-gifting
  • A welcoming family experience
  • Excellent food
  • Great service
  • Community support
  • Customer service
  • Health and safety
  • Operations managers monitor food quality, customer service and restaurant management during restaurant inspections.
  • Food safety is of critical importance to Spur Corporation and we take all issues regarding the production and preparation of our food extremely seriously. Stringent food safety standards are applied to suppliers, the outsourced logistics service provider and the group’s manufacturing facilities.
  • The group takes resolving complaints seriously and has robust and formalised complaint handling procedures in place.
  • Spur Corporation’s in-house customer service centre is an important customer touchpoint and base for monitoring consumer relations. The service centre supports franchisees and provides customer feedback to franchisees to ensure any required operational improvements are addressed.
  • The group’s social media team monitors and responds to queries, compliments and complaints posted to sites such as TripAdvisor, GoReview, Facebook and Twitter.
  • The ongoing revamp programme ensures outlet design and specifications are kept up to date and in line with group quality standards.
Stakeholder group: communities and potential customers
  • Corporate social investment (“CSI”)
  • Outdoor events
  • Ongoing support
  • Customer service
  • Community support
  • Spur Corporation is active in communities through various corporate social investment (“CSI”) initiatives run through The Spur Foundation. These aim to provide ongoing support for underprivileged youth.
  • The group’s sponsorship of a multitude of outdoor events encourages a healthy and fun lifestyle.