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Spur: The BEE beef

Sep 14 2006 19:40 Marc Hasenfuss

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Cape Town - Restaurant franchisor Spur Corporation looks determined to build a strong base of black franchisees - something that could entrench the well known family eatery brand in emerging markets in SA.

The group confirmed on Thursday that it had facilitated funding of R30m from the Industrial Development Corporation (IDC) to finance black franchisees.

Spur MD Pierre van Tonder said the group already boasted about a dozen black franchisees, but wanted to grow this number markedly in the years ahead.

Spur has 289 mostly franchised outlets throughout SA (including the smaller Panarottis and John Dory's brand).

Van Tonder would not be drawn on the number of black franchisees Spur would target within five years.

"I don't have a pre-conceived number in my head...but what I can say is that we want to use the full IDC facility."

He said the franchising model for black franchisees would differ slightly for the traditional Spur model.

"New franchisees critical for the success of business

"We will have all the usual training but with a good deal of supportive mentorship. We know the new franchisees are critical for the success of our business."

Many of the black franchisees could be selected from the ranks of Spur's current staff.

Van Tonder believed that in time viable franchise opportunities would be increasingly be available to Spur in the township areas.

He said Spur were already watching shopping centre developments in Soweto as well as areas in the Western Cape and Kwa-Zulu Natal with some interest.

Interestingly, the Spur drive for black franchises may well be a more "meat and potatoes" take on BEE.

Spur's initial BEE equity partnership with Cape-based Siphumelele fell away when the promising BEE company was disbanded some years ago.

While there are probably a number of BEE entities with a distinct craving for Spur (especially the generous distribution policy), there have been no hints (yet) that an equity deal is on the cards.

 
 
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