Spur Corporation says its restaurants have reported a steady recovery in turnover since Covid-19 lockdown restrictions were relaxed to allow sit-down restaurant to operate.
Local restaurants were mandated to close from the start of the ‘hard’ Level 5 lockdown on March 27. They were then allowed to trade on a delivery-only basis from May 1, with the sit-down service resuming only from June 29.
According to its latest trading statement, in September 2020 the group’s SA restaurants traded at 73.8% of the turnover they achieved in the same month in 2019, up from 36.5% for July and 56.7% for August.
Spur’s share price rose as much as 7.32% to R15.99 after the statement’s release.
Spur Steak Ranches achieved restaurant turnover of 72.1% of that in September 2019. The strongest performing brands were The Hussar Grill at 93.7% of prior year turnover and RocoMamas at 86.5%. The group says Pizza and Pasta is showing a slower recovery at 63.2% of turnover.
International restaurants traded at 83.9% of September 2019’s turnover.
As a whole (with local and international restaurants), the group’s turnover has steadily increased from 14.3% of 2019’s turnover in May to 74.8% in September, with 600 of the group’s 631 restaurants having reopened by the end of the month.
CEO Pierre van Tonder said the recovery in restaurant turnover post (hard) lockdown has exceeded management’s expectations. “The improving monthly growth trend is particularly encouraging in the tight consumer environment where spending is under intense pressure.
“After several months of lockdown and limited social engagement, our customers are wanting a safe and entertaining family dining experience….”
As the group is utilising the extension period granted by the Financial Sector Conduct Authority, its annual results to end June 2020 are scheduled for November 20, 2020.