Spur: consumers more prudent

Johannesburg - Consumers have cut down on restaurant visits as recessionary pressures continued to impact the restaurant industry locally and internationally, the Spur Corporation said on Thursday.

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 16.0% to R45.4m.

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 in January 2010.

"Further opportunities are being investigated in the international territories in which we trade," Spur said.

- Sapa