Spur to open 66 new restaurants, pilot new Doppio format

Spur Corporation is planning to open 66 new restaurants in the year ahead as the restaurant group expands its footprint and experiments with smaller, more flexible formats to attract new customers and a younger generation of franchisees.

The group, which owns brands including Spur, Panarottis, Doppio Zero, Hussar Grill and RocoMamas, plans to open 50 restaurants in SA and 16 internationally as it looks to build on a resilient performance in the year to June 2027.

This comes as the group reports a 6.9% rise in franchise restaurant sales, which rose 6.9% to R12.3bn for the year to June, while group revenue increased 8.5% to R4.2bn. Profit before tax, excluding the impact of a R129.5m provision for a GPS litigation claim, rose 12.8% to R453m.

Spur Corporation is developing new formats, particularly within Doppio Zero, that could provide another leg of growth for the group. Doppio Zero, with 37 outlets, increased turnover by 15.2% to R678.1m during the year to June, and is testing a new format, Doppio Roam, which CEO Val Nichas hopes will attract young investors.

The “food on the move” and grab-and-go format was launched in July at Irene Village Mall in Centurion, just outside the group’s latest financial year.

Nichas said the format could be operated from as little as 50m², with the option to expand to about 120m², creating a significantly smaller investment proposition than a conventional restaurant.

The first outlet represented an investment of about R1.3m and is operated by an existing Doppio franchisee.

“These kinds of stores will probably be satellite stores for franchisees that own stores,” Nichas said, explaining that some bakery production could take place at the main restaurant and be supplied to the smaller ROAM outlet.

More importantly, she said the concept could allow the group to attract a younger investor who may not have the capital required for a traditional restaurant.

“What this format is now representing is the opportunity we were looking for, for many years — how do we develop formats that attract a younger investor, an investor who maybe only has R1.3m or R1.8m,” she said.

The format offers coffee, baked products, healthy meals and retail products, with the group expecting to scale the concept.

What this format is now representing is the opportunity we were looking for, for many years — how do we develop formats that attract a younger investor, an investor who maybe only has R1.3m or R1.8m

Since Spur acquired Doppio Group two years ago, the business has been experimenting with formats aimed at taking the brand into different locations and attracting a wider customer base. The acquisition also brought Piza e Vino and Modern Tailors restaurants.

These include Doppio Bistrot at the Nine Yards lifestyle development in Rosebank, Johannesburg, and Doppio Caffè outlets at the Protea Hotel Sea Point and Mediclinic Sandton. A third Doppio Caffè is being developed at a corporate office park in Bryanston.

Spur Corporation has also been investing in new concepts within its existing brands. The recently opened Burning Arrow Spur in Queenswood, Pretoria, has been positioned as a flagship family casual-dining concept, with Nichas saying customer response had been exceptional and demand resulted in waiting times of up to two hours during its launch month.

Franchisees invested more than R200m in new restaurants and refurbishments during the year, creating more than 2,000 restaurant jobs.

Nichas said franchisees were also investing in innovative children’s play areas, which remain a major attraction for families dining at Spur.

Spur, which has 326 outlets, remains the group’s dominant brand, accounting for 64% of South African restaurant sales after local sales increased 5.8% to R7bn. Panarottis, which has 102, was one of the strongest performers, with sales rising 16.3% to R1.2bn, and contributing 11% of local sales.

The group intends to continue expanding in existing markets while gradually entering additional African countries, with the 66 planned openings forming the next stage of that strategy.