The group provides shareholders with a sustainable return on investment through a rigorous focus on capital efficiency and strategy execution that takes a long-term view.
Spur Corporation’s stakeholders are those individuals or groups that can affect or be affected by the group’s actions, objectives and policies.
Based on engagement with stakeholders, operating environment research and key business drivers, the group identified the main challenges the strategy needs to address to meet the strategic objectives.
Spur Corporation’s restaurants serve a full range of customers and offer consistent value at multiple price points.
The following key drivers impact Spur Corporation’s performance and sustainability. They can significantly influence the group’s ability to create sustainable value and meet strategic objectives.
Although the group’s trading environment is not an easy one to navigate, the group is confident that its depth of experience will assist it to unlock long-term opportunities in the markets in which it operates.
Mark Farrelly – Chief Operating Officer
“Franchisee profitability is critical to our sustainability and improving operational efficiencies is a constant effort. Our experienced operations management teams are equipped with the necessary knowledge and expertise to assist our franchisees on delivering on our customers’ expectations.”
We rigorously implemented the strategic priorities, resulting in a 2% to 3% increase in franchisee profitability.
Our focus for 2019 was to create a solid foundation for escalated growth over the next five years.
Restaurant turnover, franchise revenue and operating profit increased year-on-year, while operating profit margin was slightly down.
We saw excellent restaurant turnover and franchise revenue growth, mostly due to the continued loyalty and resilience of our guests.
Restaurant turnover growth slowed due to the tough trading economy. However, we aim to grow turnover through marketing activations and community involvement.
In just over two years, the Nikos brand has grown to nine restaurants. Further growth will be balanced with appropriate controls to increase profitability.
Revenue for the division increased by 8.4%, while operating profit increased by 20.2%.
2019 was a strong year for growth in Africa (including Mauritius) and the Middle East, while restaurant turnovers in Australia and New Zealand were down year on year.