Spur Corporation

Spur Corporation
Public (JSE: SUR)
Franchise
Industry Restaurants
Genre Casual dining
Founded 1967
Founder Allen Ambor
Headquarters Century City, Cape Town, South Africa
Number of locations
 575[1]
Key people
 Allen Ambor
(Executive Chairman)
Pierre van Tonder
(CEO)
Products North American-style cuisine
Revenue Increase R6.97 Billion (FY 2015)[2]
Increase R119.6 Million (FY 2015)[2]
Profit Decrease R386.6 Million (FY 2015)[2]
Subsidiaries Spur Steak Ranches
Panarottis Pizza Pasta
John Dory's Fish & Grill
Captain DoRegos
The Hussar Grill
RocoMamas
Casa Bella
Website www.spurcorporation.com

Spur Corporation (JSE: SUR) is a franchise restaurant corporation originating from South Africa. It consists of Spur Steak Ranches, Panarottis Pizza Pasta, John Dory's Fish Grill Sushi, Captain DoRegos, The Hussar Grill, RocoMamas and Casa Bella. The restaurant chains each cater for different tastes, ranging from ribs to sea food, also selling a range of sauces and other condiments under its own brand. The head office of Spur Corporation is in Century City, Cape Town. Eating out at the Spur is said to be "as South African" as biltong and Bafana Bafana, given its widespread distribution and almost 5-decade history.[3] The company was founded by Allen Ambor in 1967, opening the Golden Spur at premises in Newlands. Since then the one-brand company has diversified into a multi-brand restaurant franchise group, expanding both in South Africa and internationally to now manage over 575 branches globally. The brand's largest franchise, Spur Steak Ranches, is marketed around a "Native American" theme, and all of the restaurants cater towards a family audience. As of 2016, the corporation had revenues of approximately R7 billion, and is valued at around R3.2 billion. The company has several philanthropic endeavours in Africa spearheaded by the Spur Foundation.

History

Spur Steak Ranches

The company was founded by Allen Ambor (who is still the company's executive chairman) in 1967, when he opened the Golden Spur in Newlands, Cape Town. Spur Steak Ranches is known for its chargrilled burgers, steaks and ribs, as well as a variety of menu items such as seafood, schnitzels, chicken dishes and an assortment of light meals, salads and desserts. The franchise has a loyalty programme, the Family Card, which offers rewards and perks to regular customers.[4] Despite its South African origin, Spur uses Native American themes extensively, both in its marketing and decor. The restaurant brands itself as "the official restaurant of the South African family"; as such, most Spur restaurants include a children's play area, or Play Canyon.[1] Its decor features stylised representations of teepees, tomahawks and totem poles, while its logo is a chief with a feathered headdress. Each restaurant is given a tribal name, such as Cherokee Spur, as part of its brand marketing. While its portrayal of Native Americans is deemed by some as antiquated, the chain believes theirs is a "respectful portrayal" of Native Americans, embodying their community spirit and love for the natural environment.[5]

Spur Steak Ranches entered the Gauteng market in the mid-1980s.[1] The company was listed on the Johannesburg Stock Exchange in 1986 with a market capitalisation of R5m (now standing at R2.7 billion),[3] and expanded to other provinces in the early 1990s, such as Polokwane and Tzaneen.[1]

Spur supplies most of its own products, with procurement managed for its franchisees, and logistics coordinated by Vector Logistics. The group owns a sauce-manufacturing factory that supplies its franchises, and decor for its different businesses is also centralised. Its sauces and spices are also sold in South African supermarkets.[1][6]

By 2016, Spur was voted "Coolest Eat Out Place" by the Sunday Times for 6 consecutive years.[5]

Panarottis

In 1989, the corporation introduced its second brand, Panarottis.[6]

John Dory's Fish & Grill in Century City shopping mall, Cape Town, South Africa.

Panarottis is an Italian cuisine franchise restaurant chain originating from South Africa.[7] Its menu mainly features pizzas and pastas, but also includes salads, chicken, Mexican breakfast and vegetarian options. It expanded to Ethiopia, Namibia and Mauritius in 2015.[8][9]

John Dory's

In 2004 Spur Corporation acquired a 60% stake in KwaZulu-Natal-based seafood restaurant franchise John Dory's, purchasing the remaining shareholding from its founder over the following eight years.[7] At the time of purchase, it comprised 7 outlets. As of 2016, the restaurants totalled 40 across South Africa, and one international restaurant in Lusaka, Zambia.[10]

Captain DoRegos

The group bought Captain DoRegos burger, fish and chicken takeaway in 2012 for R30 million.[6] As of 2016, Spur has Spur has 60 Captain DoRegos franchises across South Africa, as well as international operations in Mauritius, Botswana, Lesotho and Namibia totalling 7 restaurants.[6][11][12]

In the 2008-2009 financial year, the company had a turnover of R326.77 million, while in 2015 it stood at R386.6 million.[2][1]

The Hussar Grill

Founded in 1964 in Rondebosch, Cape Town, The Hussar Grill is known throughout the Western Cape for its steaks and grills.[13] In 2014, Spur bought The Hussar Grill for R35 million.[14] In its 2013 annual report, the company stated its strategy "to grow in existing territories to allow for the development of improved logistics‚ pricing and raw material efficiencies".[9] As of 2016, the brand totalled 13 South African restaurants covering the Western Cape, Gauteng, KwaZulu-Natal and Eastern Cape regions. One international restaurant operates in Lusaka, Zambia. The business had served 53 million meals in that financial year.[15][16]

RocoMamas

Founded in Johannesburg in 2013, the US Rock 'n Roll-styled burger restaurant serving smashburgers, ribs and wings, RocoMamas was acquired by Spur Corporation in 2015, purchasing a 51% stake from Brian Altriche, who remained as CEO. RocoMamas is characterised by its "smashburgers", open-style kitchen, and "nostalgic American rock" ambience. It is a fast food brand where all products are made in-house from non-processed ingredients. RocoMamas owns the intellectual property to the smashburger in South Africa and uses various cuts of beef, as well as a proprietary smash tool to "smash" the burgers.[17] Its meals on average cost under R100, and patrons can customise their burgers. The chain also features limited edition releases, wings, ribs, as well as a variety of fries, craft beer and wines.[18][19]

The Corporation

Spur Corporation underwent restructuring in 1999 to "provide capital for growth".[20][7][21] Pierre van Tonder joined Spur Steak Ranches in 1983 as a trainee manager at one of the Cape Town branches. Van Tonder was appointed CEO in 2006.[22]

By 1986, the franchise consisted of 43 Spur Steak Ranches. By 2007 the number of restaurants opening per year was approximately 15.[20] By 2008, the Corporation counted more than 223 South African and 24 international outlets.[7]

By 2016 Spur Corporation had a total of 575 outlets globally, of which 58 operate outside South Africa, and 303 of which belong to Spur Steak Ranches.[1][23][24] In October 2014, Grand Parade Investments bought a 10% stake in the company as part of a R300 million Black Economic Empowerment transaction, which resulted in Spur issuing 10.8 million shares.[25] The company announced its closure of restaurants in the UK and Ireland in 2015, to instead focus its operations solely on Africa and Australia.[24][26][27]

Panarottis Pizza Pasta in Century City shopping mall, Cape Town, South Africa.

Spur Corporation increased its restaurant base by 74 in South Africa and 10 internationally that year.[1][23][24][28] As of June 2016, the company was valued at an approximate R3.2 billion.[29]

Brand Number of outlets in 2014[1]
Spur Steak Ranches 303
Panarottis Pizza Pasta 79
John Dory's Fish & Grill 34
Captain DoRegos 74
Hussar Grill 6
RocoMamas 33

Philanthropy

The Group owns two staff training centres, one in Cape Town and one in Johannesburg. Franchisee training lasts for several months, and runs into several weeks after the actual business opens, where teams of trainers assist new staff as they begin work. Spur Corporation launched its Spur Training Academy in 2012, which takes disadvantaged individuals and puts them through a six-month training programme. It also launched The Spur Foundation (with a R670000 endowment from the board of directors) in July 2012. With its "Nourish, Nurture, Now!" motto, the foundation's goal is to improve the lives of South Africa's families, with an emphasis on nurturing children. This is achieved through feeding schemes and providing amenities in impoverished communities. Its beneficiaries include Heifer International, ASHA, Reach for a Dream, Sisanda FunDaytion and Solomon’s Haven, amongst others.[15]

Allen Ambor

Allen Ambor is Spur's founder and executive chairman. Allen graduated from Highlands North High School in Johannesburg in 1959. He moved to London and started working as a sales trainee with a textile manufacturing group, later returning to South Africa to accept a job as a representative of the agency's business in Johannesburg. Attending the University of the Witwatersrand, he obtained a BA degree in 1965, later obtaining a position in the personnel department of a shoe company.[20]

Allen took many trips to Cape Town looking for premises, which were scarce at the time; after two and a half years he found a property. Aged 23 and carrying R2000 in his savings account, he signed the lease to open a restaurant.[3] With economic help from his father and having worked in several other positions, such as teaching English, Afrikaans primary school soccer, high school arithmetic, as well as managing some restaurants on a short term basis, Allen was able to open the first Spur Steak Ranch called "Golden Spur" in Newlands, Cape Town in 1967.[20] The branch is still open.[30]

See also

References

  1. 1 2 3 4 5 6 7 8 9 LEDIGA, CHIEF. "Spur's taste for growth continues". Business Day live. Business Day live. Retrieved 4 August 2016.
  2. 1 2 3 4 "Spur Corporation data". Sharenet. Sharenet. Retrieved 4 August 2016.
  3. 1 2 3 PENGUIN BOOKS SOUTH AFRICA (1 October 2012). Meet The CEOs - Essential Leadership Style in Today's Business World. Penguin Books Limited. ISBN 978-0-14-352941-5.
  4. ↑ "Spur group boosts restaurant sales in second half of 2014". BDlive. BDlive. Retrieved 7 August 2016.
  5. 1 2 Conway-Smith, Erin. "South Africa's 'Native American' fetish is a very strange thing". PRI. PRI. Retrieved 7 August 2016.
  6. 1 2 3 4 Douglas, Kate. "From local to global: Spur's evolution into a pan-African restaurant franchisor". How We Made It In Africa. How We Made It In Africa. Retrieved 5 August 2016.
  7. 1 2 3 4 Dimitri Tassiopoulos (2008). New Tourism Ventures: An Entrepreneurial and Managerial Approach. Juta and Company Ltd. pp. 77–. ISBN 978-0-7021-7726-2.
  8. ↑ MANYATHI, NOKUTHULA. "Spur and Panarottis Pizza Pasta to open their doors in Ethiopia". Destiny Connect. Destiny Connect. Retrieved 5 August 2016.
  9. 1 2 "Spur Corporation seeks African expansion". Africa Property News. Africa Property News. Retrieved 5 August 2016.
  10. ↑ Planting, Sasha. "Local is lekker". Moneyweb. Moneyweb. Retrieved 27 September 2016.
  11. ↑ HASENFUSS, MARC. "Spur has big expansion plans on menu for Captain DoRegos chain". BDlive. BDlive. Retrieved 5 August 2016.
  12. ↑ Vyas, Sanjay. "Africa's successful restaurant chains". African Business Review. African Business Review.
  13. ↑ Haywood, Meredith. "Hussar Grill Gateway – Opening Soon! Umhlanga, Durban". 5 Star Durban. 5 Star Durban. Retrieved 21 August 2016.
  14. ↑ Hedley, Nick. "Spur buys Cape-based Hussar Grill". BDlive. BDlive. Retrieved 6 August 2016.
  15. 1 2 Daynes, Will. "Spur Steak Ranches". BusinessExcellence. BusinessExcellence. Retrieved 7 August 2016.
  16. ↑ "Spur's profit grill". CAPE Business News. CAPE Business News. Retrieved 21 August 2016.
  17. ↑ Moorad, Zeenat. "RocoMamas makes fast inroads with authentic smashburgers". BDlive. BDlive. Retrieved 7 August 2016.
  18. ↑ Jenkin, Cath. "Satisfy that hunger with Durban's new rocking burgers". Sunday Times. Sunday Times. Retrieved 7 August 2016.
  19. ↑ NDLOVU, TUMISANG. "Brian Altriche – owner, RocoMamas". Moneyweb. Moneyweb. Retrieved 7 August 2016.
  20. 1 2 3 4 David Fick (1 April 2007). Africa: Continent of Economic Opportunity. Real African Publishers. pp. 195–. ISBN 978-1-919855-47-9.
  21. ↑ Cheryl Alters Jamison; Bill Jamison (11 March 2008). Around the World in 80 Dinners: The Ultimate Culinary Adventure. HarperCollins. pp. 183–. ISBN 978-0-06-087895-5.
  22. ↑ Douglas, Kate. "Meet the Boss: Pierre van Tonder, CEO, Spur Corporation". How We Made It In Africa. How We Made It In Africa. Retrieved 5 August 2016.
  23. 1 2 "Spur gains on new stores, forex". IOL. IOL. Retrieved 4 August 2016.
  24. 1 2 3 Peters, Fifi. "Bigger footprint drives Spur sales growth". BDlive. BDlive. Retrieved 4 August 2016.
  25. ↑ Mawson, Nicola. "Spur to double RocoMamas base". IOL. IOL. Retrieved 7 August 2016.
  26. ↑ "Grand Parade seeks 10% share capital in Spur". CNBC. CNBC. Retrieved 6 August 2016.
  27. ↑ Magwaza, Nompumelelo. "Spur's trading hurt by Eskom outages". IOL. IOL. Retrieved 6 August 2016.
  28. ↑ "BRIEF-Spur Corp says FY total restaurant sales up 12.9 pct". Reuters. Reuters. Retrieved 7 August 2016.
  29. ↑ "Spur bucks sector trend to post 50% increase in profit". BDlive. BDlive. Retrieved 5 August 2016.
  30. ↑ Carié Maas (15 August 2013). From Corner Café to JSE Giant: The Famous Brands Story. Tafelberg. pp. 26–. ISBN 978-0-624-05679-9.
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