Spur Corporation which includes brands like Panarottis, John Dory’s and Captain DoRegos are all set to open their outlets in Swaziland‚ Nigeria‚ Tanzania‚ Namibia and the Seychelles next year.
The middle class in Africa is expected to be increased to triple by 2031, consumer facing industries are controlling the opportunities to cash in on the rise in spending.
According to the annual report released yesterday, the restaurant franchise group said that their intention was to expand further in existing territories in order to allow further growth and development of improved logistics, pricing and raw material efficiencies.
CE Pierre Van Tonder said that “Many countries in Africa offer better opportunities to grow higher and higher in the market inspite of each market having its own unique challenges,”
Outside SA the group’s African division contains 25 restaurants. Apart from this the company is having additional nine outlets in Mauritius.
He further said that we have added more resources to our African management team. The new captains DoRegos (Mauritius and Namibia) have been received well and hence we expect that there is a large market for this in Africa.
The company further said that “We continuously review our traditional methods to accept this to higher set up, occupancy costs and other challenges we face in some of the African countries.”
The chances of Africa to grow at a faster rate has now attracted other local players as Famous Brands and Taste Holdings as well as global chains.
Domino’s Pizza which is the largest pizza chain worldwide has opened two restaurants in Nigeria last year and also looking further to expand in kenya and SA.
Apart from this other food company, YUM Restaurants International is also establishing its platform in Africa which is expected to grow KFC “exponentially” in future.
The owner of Wimpy and Mugg & Bean, Famous Brands (Fbr), had acquired a 49% stake last month in Nigerian fast food business Mr. Bigg’s, that it will use to establish its position in crowded countries of Africa.
Famous Brands’ network in the rest of Africa holds 172 restaurants in 15 countries and gains around 8% of total sales. The company is expecting to exceed the sales to 15% in the next three years.
Good profit are clearly available in the rest of Africa, it must be eased by acknowledging with the trading risks such as the lacking formalised retail infrastructure, power shortage and poor logistics.
