Consumer Industries Editor

CAPE TOWN Family restaurant group Spur Corporation, which owns Spur Steak Ranches and Panarotti's Pizza Pasta, has signed an agreement with a Middle Eastern conglomerate, the al-Babtain group, to open a number of Spur Steak Ranches in Kuwait and eleven neighbouring countries.

These will be franchised restaurants, not company-owned stores. Spur will contribute the initial management expertise, intellectual property and support systems and decor items.

Specialised equipment and sauces will be exported from SA.

The first 300-seater Spur restaurant opens in October in Kuwait City. Two more are planned for Dubai.

Spur MD Pierre van Tonder said Kuwaiti habits were shifting from eating at home to eating out.

Spur's main competitors will be international sit-down chains such as Applebee's, Chili's and TGI Fridays.

Van Tonder said the Middle East market was competitive, but Spur would be entering the region with the backing of one of Kuwait's largest and most dynamic groups.

Al-Babtain, which was founded in 1948 as a trader in spare parts, now represents 50 international corporations in sectors ranging from food, vehicles and computers to real estate, plastics and health care.

Al-Babtain initiated the deal after seeing Spur's success in Ireland and the UK. Chairman Khalid al-Babtain said restaurant customers in the Middle East expected good service and good quality food within a pleasant environment and at a competitive price.

Sound training, using Spur's knowhow, was a critical part of the group's strategy, the chairman said.

Spur's overseas operations contribute 11,5% of its aftertax profit.

According to Spur's latest annual report, the corporation had 20 Spur restaurants and six Panarotti's operating in the UK, Australia, Africa and Mauritius.

The group is due to publish its interim results next week.

Feb 25 2004 07:30:46:000AM Charlotte Mathews Business Day 1st Edition