'Getting people out of their homes and into a restaurant is challenging'

Spur Corporation says the escalation of costs in South African households has limited the amount of money customers spend at its franchisees.

According to Fin24 the company's franchised restaurant sales in South Africa grew only 6.2%.

The company that owns Spur, RocoMamas, Panarottis Pizza and a number of other restaurants says it has counter acted the increasing pressure in the slowing economy by driving big value - food in terms freshness, presentation, look and feel etc.

Spur Corporation CEO Pierre Van Tonder admits that getting people out of their homes and into restaurants is challenging.

Escalation of costs in households and so forth has limited what I would call discretionary spend or a privileged spend in restaurants.

Pierre Van Tonder, CEO - Spur Corporation

To get people out of their homes and into the restaurants today, especially in the economic times of today, is difficult.

Pierre Van Tonder, CEO - Spur Corporation

Van Tonder says delivery services like Mr Delivery and Uber Eats are a real strategic threat going forward, so one may need counter intuitive strategies to 'balance the books'.

They play a role. We would be naive to say that we don't view that as a real strategic threat going forward because of the convenience.

Pierre Van Tonder, CEO - Spur Corporation

They are there for convenience, people will use them for convenience and if you don't play in that game or in that field, you will be caught left wanting.

Pierre Van Tonder, CEO - Spur Corporation

There are certain products that don't travel well and you will find as you go froward, the range of product will be limited to those that can travel and can get to your home in a reasonable state.

Pierre Van Tonder, CEO - Spur Corporation

Click on the link below to hear the full interview...

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