Despite a 11.2% drop in John Dory’s sales to 374.8 million rand and the closure of six restaurants over the year, Spur states that it will retain the seafood chain and conduct an assessment of the remaining locations.
CEO Val Nichas emphasized that the seafood chain still has prospects as the group develops a new plan for the struggling brand.
In the year ending June 2026, John Dory’s sales decreased from 422.2 million rand to 374.8 million rand, and profit before tax fell by 23.3%, amounting to 7.7 million rand.
The brand's footprint also shrank for the second consecutive year: six restaurants were closed during the financial year, including five in South Africa. The network in South Africa reduced from 44 to 39 establishments, and the total number of restaurants both domestically and internationally decreased from 46 to 40.
The pressure on John Dory’s contrasts with the results of other major Spur Corporation brands. Sales of local Spur restaurants grew by 5.8%, Panarottis increased by 16.3%, RocoMamas showed growth of 7.6%, and specialized brands demonstrated an 8% increase.
Nichas noted that the seafood category proved particularly challenging, as financially strained consumers have become more cautious about spending on dining out.
More choice for consumers
In an interview with 702, Nichas stated that the seafood category is currently a complex area. She added that seafood is a more expensive and perceived as a premium product, which creates additional difficulties.
Furthermore, John Dory’s faced difficulties expanding beyond its traditional base in KwaZulu-Natal, especially in Gauteng, where, according to Nichas, competition is higher and consumers have more options.
Despite closures and declining sales, Nichas assured that Spur is not considering a complete shutdown of the brand. She explained this by saying the company has too many loyal franchisees who love their business.
Instead, the group is assessing the remaining stores of the brand and determining which locations can continue operating. Nichas confirmed that they still believe in the future of John Dory’s and have ready plans that will be released to the market in a few months, calling for patience.
John Dory’s remains the smallest brand in the group, but it generated 8 million rand in profit over the year.
Long-running dispute
The strong performance of other group brands contributed to a 6.9% increase in total franchise restaurant sales, reaching 12.3 billion rand, with revenue growing by 8.5% to 4.2 billion rand.
Nichas explained that Panarottis benefited from pizza demand, and the group was also working to stimulate pasta offerings. She emphasized the importance of increasing category awareness to encourage customers to try new things.
Spur’s results were also affected by a provision of 129.5 million rand related to a protracted dispute with GPS Foods, after the arbitrator awarded GPS 74.6 million rand in damages. Spur intends to appeal this decision, with the appeal scheduled for February 2027. Nichas reported that the company cannot predict the outcome of the case, and the only thing that can be done is to follow the process.