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Spur Restaurants Buys into Rib Business

01 April 2014

SOUTH AFRICA - South African restaurant chain, the Spur Group has acquired a 30 per cent stake in Braviz Fine Foods (Pty) Ltd, a start-up operation currently establishing a new world-class meat processing facility in Johannesburg that will specialise in processing rib cuts.

Spur’s R36 million investment, structured in the form of equity and shareholder loans, will assist the group in securing its rib supply.

Ribs are amongst its most popular menu items, according to CEO Pierre van Tonder.

The 6 000 square metre meat processing plant, being built at a cost of R120 million, is scheduled to begin production by December this year. Employing over 50 people, it will have the capacity to process 700 metric tons a month.

Mr Van Tonder says the highly advanced technology of the facility, coupled with the expertise of the other shareholders, who are industry experts and who will be responsible for day-to-day operations, will maximise efficiencies within the supply chain. It will also ensure that the highest standards of quality and food safety are observed.

"Our investment gives us access to a top-quality product at competitive pricing, benefitting our Spur franchisees and, in turn, their customers."

He says that with ribs currently sourced from Europe, pricing is subject to global demand and exchange rate fluctuations.

“The deal is expected to contribute to greater pricing stability for our franchisees, afford them consistent quality of supply and keep menu prices accessible for our customers.”

The facility will be able to supply ribs to the 272 franchised Spur Steak Ranch restaurants in South Africa, but export markets will also be explored, he adds.

Initially, focus will be on rib processing, but the facility is also being designed to process other proteins, including chicken.

The venture will be managed as a standalone operation, with trading dictated by market forces. Customers will not be limited to Spur franchisees, Mr Van Tonder said.

Ribs are a major feature of the Spur Steak Ranch menu, served in a variety of combinations with a selection of chicken, prawns and calamari. Van Tonder confirms that the “Bottomless Ribs, Wings or Calamari” promotion, offered every Thursday at Spur Steak Ranches, is growing in popularity with customers.

The JSE-listed Spur Corporation operates 494 outlets globally across five chains: Spur Steak Ranches, Panarottis Pizza Pasta, John Dory's Fish Grill Sushi, Captain DoRegos and The Hussar Grill. Spur Steak Ranches, with 308 outlets worldwide, is the biggest of its brands.

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