SPUR BUYS NEW GOURMET BRAND, UPPING ITS NICHE MARKET PRESENCE.Photo Supplied SPUR BUYS NEW GOURMET BRAND, UPPING ITS NICHE MARKET PRESENCE.Photo Supplied
Nompumelelo Magwaza
FOOD service franchisor Spur Corporation plans to buy a majority stake in RocoMamas, a Gauteng-based franchise restaurant, for about R27 million based on earnings over a period of three years.
Spur Corporation, which owns brands such as John Dory’s, Spur Steak Ranches and Panarottis Pizza Pasta among others, said yesterday that the deal would come into effect by March.
Resources
Spur’s infrastructure, financial and marketing resources, the company was well placed for RocoMamas national, “with the capacity to add another 30 to 40 outlets in a relatively short time”, said the group’s chief executive Pierre van Tonder.
RocoMamas specialises in hand-made food and customised menus where diners can co-create their dishes.
The concept was launched by Brian Altriche in 2013. Altriche already owns two Spur-brand restaurants as a franchisee. He has grown his RocoMamas brand into four restaurants in Johannesburg and plans to open another three this year. He will own 49 percent of the business and will continue as chief executive.
Van Tonder said the transaction would be done based on earnings.
“The total transaction value should be about R27 million over a period of three years,” Van Tonder said.
He said Altriche’s presence made sense for the operational side of the business. “We have looked at the business and we think it is a very nice business from the franchisee model part of the business. Because of our networking and base in South Africa we see it as an opportunity to grow it as a brand.”
New flavours
He added the RocoMamas concept was ideal for the current market with the public hungry for new flavours and new ways of enjoying them. “The response rate from potential franchisees, who recognise this, has been overwhelming, with interest being shown well beyond the country’s borders.”
Van Tonder said Spur Corporation’s expansion strategy would also benefit from the group’s relationship with an extensive network of property owners and landlords.
“We have a very strong, long-standing relationship with Altriche and believe that together, we can grow this exciting brand to reach its full potential.”
Altriche said: “The RocoMamas’ positioning of ‘we’re not normal’ highlights our differentiation from the main fast dining experience.
“Our menu is small but can be individualised, so it becomes more interactive, with guests collaborating in the outcome of their dishes.”
Spur’s stock dropped 1.16 percent to close at R34.