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...
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:
Recommendedby NEWSROOM AI
Faith Popcorn is a US futurist who coined the term 'cocooning' - something we are all ordered to do now.
Edcon CEO Grant Pattison broke down in tears today, telling suppliers the company only has sufficient liquidity to pay salaries.
Statistics South Africa warns the lockdown will impact on the collection and publication of official statistics.
In an unprecedented step, the Reserve Bank is buying government bonds.
Technological advancements have made it possible for new banks to operate and flourish.
Consumer Ninja, Wendy Knowler, on payment holidays from banks in which you get a break from interest and repayment of debt.
The department said the numbers did not indicate a reduction in the number of infections.
The Motsepe family announced details of the donation on Saturday. Several hundred million rand will be available 'immediately'.
Parenting expert Nikki Bush kicks off a four-part series on becoming a hero to your children during the Covid-19 lockdown.
JP Smith says Capetonians were largely cooperative on Day One of lockdown, but there were pockets of 'massive' non-compliance.
Sama chair Dr Angelique Coetzee expands on the crisis facing hospitals and clinics because of a shortage of protective gear.
The ratings agency cited weak growth and a decline in fiscal strength as its main reasons for the downgrade.
The department also confirmed that the number of coronavirus cases now stood at 1,170.
Members of the COVID-19 national command council are updating the nation on the coronavirus lockdown situation.
Eyewitness News reporters Edwin Ntshidi and Theto Mahlakoana give updates on situations in the two areas.
The party released a statement on Friday confirming the news.