Spur says it is facing growing competition from supermarkets as Checkers, Woolworths and other retailers aggressively expand their ready meals and fresh food ranges, which are eating into its customer base.
Ready-made meals, once viewed as a niche segment, are now a mainstream competitor for consumer wallets. Spur says it will continue to expand its takeaway and delivery offerings, but its defence against the supermarket threat rests on reinforcing its identity as a sit-down, family model.
“Convenience is a big driver. As consumers find new channels or lifestyle solutions, supermarkets are competing directly with us on meal occasions,” Spur CEO Val Nichas told Business Day.
“The only way we can differentiate is through an experience that you can’t replicate at home or in-store. We provide a place where people can connect with friends and family. That’s where our value lies.”
Spur is also overhauling its restaurant network to enforce that strategy. Fifty-one outlets have already been converted to the refreshed Spur concept, while Panarottis, John Dory’s, Hussar Grill and Doppio Zero are also undergoing redesigns. Nichas said franchisees are offered three pricing options for revamps to ease the financial burden and are voluntary unless a store shows signs of neglect.
She said the facelift is not just cosmetic; the new designs are also intended to revitalise the dining experience.
Shares in the group rose sharply on Thursday after it reported another year of growth, with stronger restaurant sales and an expanding footprint at home and abroad lifting its earnings.
After gaining as much as 13.8% intraday trade, the stock ended the day 7.73% higher at R35.55, marking the biggest one-day gain in about a month.
The owner of Spur Steak Ranches said profit improved as customers spent slightly more on meals, even though overall customer traffic was flat.
Headline earnings per share (HEPS) increased 16.8% to 339.88c as group revenue rose 11.2% to R3.9bn, while profit before tax was up 17.5%. Franchised restaurant turnover grew 8.3%.
Spur is ending the year with more than 700 outlets across 14 countries. It opened more new restaurants than it closed and is planning a bigger rollout in the year ahead, mostly in SA, it said.
A final dividend of 193c per share was declared, lifting the full-year payout 40.4% to 299c.
The company remains confident about long-term growth opportunities across its restaurant portfolio, though it acknowledged that pressure on household budgets would keep trading conditions challenging for now.
“The outlook will be focused on creating better, more and new value for our customers, franchisees, employees and investors,” it said.
“With a diverse portfolio of 10 restaurant brands, the group is poised to capture market share across various categories, regions and countries. The group focuses on providing growing middle-income markets with casual dining restaurant experiences through our family sit-down and fast-casual restaurants, while offering speciality dining experiences to higher-income customers.”
Update: August 21 2025
This article contains new information and the closing share price.
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