Business
Spur’s R230m lawsuit battle enters decisive phase as appeal looms
For many South Africans, Spur means birthday songs, sticky ribs and family dinners that stretch late into the evening. But behind the scenes, the well-known restaurant group is facing a legal battle that could cost it more than R230 million.
The case, which dates back to 2019, has now entered a critical stage, with the final amount Spur may have to pay still hanging in the balance.
Where it all began
In December 2019, GPS Foods sued two companies within the Spur group. The dispute centres on what GPS describes as an oral agreement between the parties to form a joint venture. The proposed venture was meant to acquire, develop and manage a rib processing facility.
GPS alleges that Spur’s companies breached this agreement. As a result, it lodged two claims. The first is a primary damages claim ranging between R119.9 million and R167 million. The second is a backup delictual claim of about R95.8 million for accumulated losses.
Spur has firmly denied that any binding agreement existed. The group maintains that any joint venture would have required board approval, which it says was never granted.
Arbitration blow in 2025
Instead of heading to open court, the parties opted for private arbitration. Proceedings began on 23 October 2023. Closing arguments were heard on 9 December 2024.
In August 2025, the arbitrator ruled that Spur is liable for damages arising from a breach of the joint venture contract. It was a significant setback for the restaurant group.
However, the real battleground now is the amount.
GPS is demanding R233 million, plus interest. Spur’s own experts calculate that the damages should fall between R116 million and R126 million. The gap between those figures is substantial and could materially affect the company’s financial position.
Expert witnesses are expected to present evidence in April 2026, with closing arguments scheduled for May 2026. Only after that will the arbitrator issue a final ruling on the payout amount and the backup claim.
Spur plans to appeal
In its latest interim results for the first half of the 2026 financial year, released on 26 February, Spur made it clear that it intends to appeal the ruling on liability. The company stated that its legal advisers believe it is highly likely that the appeal will succeed.
So confident is the group that it has not raised any financial liability in relation to the matter.
That decision has raised eyebrows in some corners of the business community. On social media, reactions have ranged from concern about the potential financial hit to confidence that the brand is resilient enough to absorb the blow if necessary.
Strong results despite tough conditions
Interestingly, the legal cloud has not overshadowed Spur’s financial performance.
For the six month period, the group reported revenue growth of 8.5 percent and profit growth of 12.4 percent. Basic earnings per share rose by 13.9 percent to 203.61 cents.
The company noted that it achieved this growth amid geopolitical volatility, economic pressure and ongoing supply chain disruption. Foot and mouth disease, which affected South Africa’s beef livestock industry, led to supply shortages and higher beef prices during the period.
Despite those headwinds, Spur opened 29 new restaurants across its brands, bringing its total network to 753 locations.
The numbers in perspective
To understand the scale of the dispute, consider this. GPS’s R233 million claim is higher than the R172.58 million profit Spur reported in its latest interim results. It is also not far off the R286.75 million profit the group recorded for the full 2025 financial year.
If the appeal fails and the higher claim is upheld, the payout could have a noticeable impact on the group’s finances.
For now, though, Spur appears to be projecting calm. The company is expanding, posting growth and standing firm on its legal position.
As the arbitration moves into its final phase in 2026, investors and loyal diners alike will be watching closely. In a country where Spur has become part of the family dining culture, this is more than just a corporate dispute. It is a reminder that even the most established brands can find themselves navigating high-stakes battles far beyond the grill.
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Source: Daily Investor
Featured Image: News24
