Spur Corporation Expands Footprint: South Africa’s Favorite Food Chains Open More Stores

The Spur Corporation, one of South Africa’s most beloved food chains, continues to expand its global presence, with the total number of stores increasing to 726 across 15 countries by the end of 2024. This marks a notable rise from 687 restaurants in December 2023 and 701 in 2024, reflecting the group’s resilience and strategic growth in a challenging economic environment.

Store Expansion in South Africa and Beyond

In the six months ending December 2024, the Spur Corporation opened 21 new restaurants, including six Spurs, six Panarottis, one John Dory’s, three RocoMamas, three Doppio Zero, one Piza e Vino, and one Modern Tailors. This expansion brought the total South African restaurant footprint to 619, despite the closure of five underperforming outlets during the same period.

Internationally, the group opened 12 new restaurants, increasing its global network to 107 stores. However, it exited the underperforming Saudi Arabian market, closing two RocoMamas locations. The group cited geopolitical tensions, political uncertainty, and supply chain challenges as ongoing pressures on African economies, particularly in markets like Ghana, Nigeria, and Zambia, where currency devaluations have impacted operations.

South African Restaurant Growth

Focusing on South Africa, the Spur Corporation added over 20 new stores from December 2023 to December 2024. Key contributors to this growth included Spur (+7), Panarottis (+10), and Doppio Zero (+5). The group also expanded its Casa Bella, Modern Tailors, and RocoMamas brands. However, some brands, such as John Dory’s, Niko’s, and Piza e Vino, saw flat or declining store numbers.

Financial Performance

The group reported a 10.0% increase in total restaurant sales for the six months ended December 2024, reaching R5.9 billion. This growth was partly driven by the acquisition of a 60% stake in the Doppio Collection, which contributed R350.8 million to total sales. Excluding this acquisition, restaurant sales still grew by 4.8%.

Spur remains the largest contributor to South African sales, accounting for 64% of total revenue, followed by RocoMamas and Panarottis, each representing 10%. Panarottis’ small-town strategy and RocoMamas’ marketing and product changes have been particularly successful, with the latter achieving 6.9% like-for-like sales growth.

Challenges and Opportunities

Despite two interest rate cuts during the period, the group highlighted that cost-of-living constraints continue to limit household spending. While food inflation and borrowing costs have decreased, these changes have not significantly boosted disposable income or discretionary spending. The introduction of South Africa’s two-pot retirement system saw R43 billion withdrawn from savings accounts, but these funds were primarily used for debt reduction rather than discretionary spending.

Nevertheless, the Spur Corporation reported a 13% increase in revenue to R2 billion, with gross profit rising by 19.8% to R639 million. Basic earnings per share grew by 12.1% to 178.84 cents, and the interim dividend per share increased by 11.6% to 106 cents.

The Spur Corporation’s expansion in 2024 underscores its ability to navigate a challenging macroeconomic environment while continuing to grow its footprint both locally and internationally. With a strong focus on strategic acquisitions, innovative marketing, and franchisee interest, the group remains a dominant player in South Africa’s food and beverage industry. As economic conditions evolve, the Spur Corporation is well-positioned to adapt and thrive, offering customers beloved dining experiences across its diverse portfolio of brands.

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