Spur looks to fatten margins on eateries

RESTAURANT franchisor Spur Corporation will be looking to fatten margins on its newer eatery brands in the next five years‚ but will also contemplate selling its struggling Captain DoRegos franchise.

Speaking at the release of the company’s interim results to end-December‚ CEO Pierre van Tonder said on Thursday he was pleased with the growth in franchise brands outside the traditional Spur Steak Ranch offering. Spur saw a better-thanexpected performance from recently acquired gourmet burger specialist RocoMamas‚ while Panarottis Pizza Pasta grew restaurant sales 22%‚ The Hussar Grill by 37% and John Dory’s 20%.

The Spur Steak Ranches brand pushed up restaurant sales 6%.

Van Tonder said it was the company’s plan to ensure all the smaller brand formats achieved gross margins of 75%-80% within five years.

This story appeared in Weekend Post on Saturday, 27 February, 2016 e-Edition

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