The Spur Corporation revealed that RocoMamas Green Point raked in over R8 million in revenue in 2023 but made a loss of R1.11 million.
The Spur Corporation operates as a franchisor for the RocoMamas brand and has a 70% effective interest in the RocoMamas Franchise Company.
However, RocoMamas Green Point is reported separately in Spur’s results as an indirect subsidiary in which the company has a 90% effective interest and controls 100% of the voting rights.
Daily Investor looked at the performance of this restaurant compared to the RocoMamas franchise to get an idea of how much money the restaurant brand makes in a year.
Since launching in 2013 and becoming partially owned by Spur in 2015, the RocoMamas franchise has become one of Spur’s most valuable brands.
In Spur’s latest results for the year ended 30 June 2023, RocoMamas represented 23% of the company’s international restaurant sales and was the largest contributor to takeaway sales at 47%.
There are 107 RocoMamas restaurants – 85 in South Africa and 22 internationally. Over the past year, RocoMamas’ turnover grew by 9.6% to R865 million.
The RocoMamas franchise raked in R226.34 million in revenue in Spur’s 2023 financial year and made a profit of R21.76 million.
RocoMamas Green Point had a far less successful year than the franchise’s performance. While the restaurant collected revenue of R8.74 million, it made a loss of R1.11 million in FY2023.
RocoMamas Green Point was first separately listed in Spur’s 2021 annual results but was first mentioned in its 2018 report.
In 2018, Spur said that during the prior year, with effect from 1 June 2017, a subsidiary, Opilor – in which the group has a 68% equity interest – sold the business of RocoMamas Green Point to a newly-established entity, Green Point Burger Joint.
Two-thirds of Green Point Burger Joint is owned by wholly-owned subsidiary Spur, and the remaining third by 70%-owned subsidiary RocoMamas Franchise Co.
This effectively increased the group’s ownership interest in the outlet from 68% to 90% in the prior year.
Following this change, RocoMamas Green Point was only mentioned once in Spur’s 2019 results, where it said turnover at the outlet was 24.4% lower for the period following the opening of a franchised RocoMamas in a nearby suburb.
Since then, the outlet’s performance has continued to decline, as shown in the table below.
|2020||R8.44 million||R1.14 million|
|2021||R7.72 million||R1.00 million|
|2022||R10.83 million||R1.11 million|
|2023||R8.74 million||R1.15 million|