Mar 25 2009
As is the case for a growing number of SA companies, the foreign market is becoming ever more important to the JSE-listed Spur Group.
Spur Group generates an ever bigger part of its annual turnover outside the borders of the country: In 2008 international restaurants in the Group accounted for 30% of turnover – up from just 4% in 2006.
No wonder then that management is spending ever more time and energy looking for further growth opportunities abroad.
The story is the same for other food chains like Nando’s and Mugg & Bean.
In its 2008 Annual Report Spur said:
While franchising remains our core business model, we have invested in wholly-owned restaurants to accelerate growth in the United Kingdom and Australian markets. We plan to invest in the forthcoming years (focusing on substantial franchisee partners, who invest in and operate the franchised outlets personally), whilst continuing to develop our franchise base. Our international division now comprises 35 restaurants, with 28 Spur Steak Ranches and seven Panarottis Pizza Pasta outlets.
The ownership structure in these regions is as follows:
• United Kingdom: The group owns three restaurants and operates five franchised outlets.
• Australia: Three restaurants are company-owned, with the group holding a minority interest in a further three restaurants and one restaurant is fully franchised.
• Africa and Mauritius: All 20 restaurants are franchised.
The recent substantial decrease in the world economy’s trading patterns may bode well for our brands to expand, as rentals decrease and opportunities present themselves to top class operators.
The group plans to open 16 restaurants in South Africa in the 2009 financial year. We are also investigating opportunities across Africa, including Ghana, Kenya, Nigeria, Tanzania and Zambia, while continuing to explore potential in the Middle East. Further locations are being pursued in the United Kingdom and Ireland.
Read all about Spur’s drive to internationalise here.