Environment

The group’s priority is to ensure the financial sustainability of franchisees and management committed to supporting the restaurant owners throughout the lockdown. This included discounting monthly franchise and marketing fees which are the primary source of the group’s revenue. A decision was taken to waive franchise and marketing fees from mid-March ahead of the start of the national lockdown on 27 March 2020 until the end of April 2020 when all outlets were closed. The Spur Steak Ranches franchise fee was discounted from 5% to 3% of restaurant turnover and the marketing fee from 4% to 1% from May 2020. Franchisees were allowed to reopen restaurants at their discretion under the various levels of lockdown as trading restrictions were relaxed, empowering them to make decisions that were in their personal financial interests. Following the reopening of restaurants, trading strategies have been implemented to restore franchisee profitability by driving turnover through promotions and value campaigns, and brand innovation.

Commitment to Sustainability 

Sustainability has never been more relevant than in 2020 following the outbreak of COVID-19 and the devastating global social and economic impact of the pandemic. The pandemic has highlighted the value of companies integrating effective environmental, social and governance (ESG) practices into their businesses to ensure longer term sustainability. The sustainability of Spur Corporation was severely tested during what has been the most challenging trading period in the group’s history. The forced closure of restaurants in South Africa for five weeks was followed by harsh trading restrictions for several months thereafter. Our international restaurants similarly all experienced trading limitations. The group has shown its resilience and emerged from the crisis with a resolve to regain lost ground and restore the profitability of our franchisee base and the group. As a responsible corporate citizen, the group is committed to sustainable business practices and responsible ESG practices.

The sustainability of the group’s business model is largely dependent on the profitability of our franchises, supported by ethical business practices, good corporate governance and environmental responsibility. We believe that sustainable business practices support financial growth by increasing efficiencies and reducing costs, and enabling the group to comply with regulations related to climate change, resource management and transformation. Brand reputation is an asset in today’s volatile trading environment. Customers, potential employees and investors are more likely to support brands that are active in their communities and have clear positions on sustainability and fair and just employment practices. In a post COVID-19 environment, we understand that we need to look beyond business as usual.

The group’s long-term financial sustainability will determine how we address and manage social and environmental risks, opportunities, legislative requirements and best practice. These issues need to be elevated in the boardroom and inform the group’s strategies. As this sustainability report highlights, the group has made most encouraging progress across several areas of sustainability and we recognise that we can and need to do more.

Franchisee Sustainability

The group’s priority is to ensure the financial sustainability of franchisees and management committed to supporting the restaurant owners throughout the lockdown. This included discounting monthly franchise and marketing fees which are the primary source of the group’s revenue. A decision was taken to waive franchise and marketing fees from mid-March ahead of the start of the national lockdown on 27 March 2020 until the end of April 2020 when all outlets were closed.

The Spur Steak Ranches franchise fee was discounted from 5% to 3% of restaurant turnover and the marketing fee from 4% to 1% from May 2020. Franchisees were allowed to reopen restaurants at their discretion under the various levels of lockdown as trading restrictions were relaxed, empowering them to make decisions that were in their personal financial interests. Following the reopening of restaurants, trading strategies have been implemented to restore franchisee profitability by driving turnover through promotions and value campaigns, and brand innovation.

Building Sustainable Brands

“The group is aware that aligning sustainability and revenue goals into corporate and marketing strategies is of increasing importance if the business is to remain relevant to a consumer base that is becoming more socially and environmentally aware and to ensure we operate well within environmental boundaries. 

Our strategy will continue to focus on deep engagement with stakeholder groups, specifically the brand and our supply chain gatekeepers. 

A notable proactive effort to onboard and ember sustainability principles into the group’s marketing strategies by the respective operational and brand teams with participating franchisees, further support the overall objectives of positive change through ongoing collaboration.”

– J Stead, Environmental Sustainability Manager

View the Sustainability Report 2020 here

View the Sustainability Report 2019 here

 

Header image attribution: designed by onlyyouqj / Freepik