Consumers cut down on restaurant visits

2010-02-25 12:05

Consumers have cut down on restaurant visits as recessionary

pressures continued to impact the restaurant industry locally and

internationally, the Spur Corporation said today.

The JSE-listed family restaurant group was releasing its interim

results for the six months ended December 31.

“We have delivered a solid performance in the current economic

environment,” it said, adding that headline earnings for the period increased by

16% to R45.4 million.

The group said it had posted a 6% growth in revenue to

R179.5m.

Spur said that in the past few months consumer sentiment had

improved amid lower interest rates, stabilising inflation and higher real wage

increases.

“Many economists do not expect a meaningful upturn in consumer

spending for the balance of the year in anticipation of consumers exercising

prudence due to economic pressures, such as rising energy costs,” the group

said.

In this environment, value and affordability remained its primary

focus.

“We are determined to remain competitive through adhering to brand

fundamentals.”

Spur said the Fifa 2010 World Cup heralded an exciting time for the

country.

Support from its regular customers, combined with the extended

mid-year school holiday, would hopefully impact favourably on trading during

this period.

“Spur Corporation will continue to pursue its strategy of

restaurant expansion locally and abroad, and plans to open several restaurants

in South Africa in the remainder of the financial year,” it said.

The group opened its first franchised Spur Steak Ranch in Dubai

last month.

“Further opportunities are being investigated in the international

territories in which we trade,” Spur said.


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