FAST-food outlet Steers and convenience stores chain Spar have started a joint venture that will introduce Steers outlets in selected Spar stores.
In recent years Spar has had to operate in a sector that has become increasingly competitive. With the garages opening forecourt stores, and large retailers Shoprite and Pick 'n Pay now operating convenience stores, Spar no longer has just 7-eleven as a competitor.
A fast-food outlet would add a new dimension to Spar's range of convenience products.
The venture, to be known as Steers@Spar, would be in a trial phase in six Spar regions in Western and Eastern Cape, KwaZulu-Natal and Gauteng.
Spar CEO Peter Hugh said: 'Fast food is a way of life'.
He said fast food competed with convenience stores, because buying a meal from a fast food chain meant groceries were not bought from a store.
Steers chief operating officer Kevin Hedderwick said the venture would allow the fast-food group cost-effective access to a broader distribution network. 'The huge increase in households where both parents are in full-time careers has given further impetus to the already strong demand for a greater variety of home meal replacement options,' said Hedderwick.
The introduction of the Steers@ Spar outlets would allow Spar to extend its product range and introduce a new shopping dimension into the stores without making a financial investment, Hedderwick maintained.
now have access to the 'weekly footfall of in excess of 1-million that we have in our outlets collectively'.
'It's a win-win situation all round and we are excited about the prospects,' Beavon said. Hedderwick believed the alliance with Spar would also increase visibility for the Steers brand.
The Steers@Spar outlets will be governed by the same agreement that Steers have with all its franchisees.
Publisher: Business Day
Source: Business Day