Rescue plan underway for collapsed Spurs

MBONGENI MGUNI
Staff Writer | Friday August 30, 2013 00:00

 

Spur, touted as South Africa's leading family restaurant chain, had six outlets in Botswana comprising 'steak ranch' restaurants and a pizzeria trading as Panarottis. Three steak ranches and the sole pizzeria were operating in Gaborone and shut down recently in a move affecting approximately 70 workers.Responding to BusinessWeek enquiries, Tonder said the group had attempted and failed to prevent the restaurants' closure. He added that the group was working on re-opening in Gaborone, although due process had to be followed.'We tried to assist the franchisee with his 'financial house' and getting it in order, but regrettably, this was not possible, hence, the closures,' he said.'Having said this, we are working with the existing legal framework to see if the businesses can be re-opened. 'But, the liquidation process first needs to take its course, under Botswana law.'Please be assured that we will do our utmost to facilitate the re-opening of the Spur restaurants and to ensure that people can once again have their favourite meal in the future.'

The Spur group CEO revealed that the restaurant chain is working with various stakeholders, including the former franchise holder, to revive the closed outlets.'We are working with our ex-franchisee, the various supply chain people and local liquidators to see whether we can resuscitate and facilitate the re-opening of the restaurants,' he said.The CEO explained that the group's initial efforts to prevent the collapse was limited by the franchise arrangement under which Spur Steak Ranches International BV had no equity in the troubled businesses.As a result, the group could not directly intervene in keeping the outlets afloat.'The outlets in question operate under a franchise given to them by Spur Steak Ranches International BV,' he said.'Spur BV has no equity interest in these businesses and therefore unable to assist with any financial platform, as these outlets are individually owned.'We deeply regret the closure of the restaurants and any disappointment caused to the people.'

The Spur group is among the leading South African restaurant chains in the local market, all of which are leveraging on the country's high per capita income and modernity.For the Spur Group, Botswana has the second highest number of outlets outside South Africa, equal to Namibia and England. Only Mauritius has more outlets at eight.In South Africa, the Spur Group boasts 408 restaurants comprising 254 steak ranches, 52 Panarottis as well as other restaurant types.