The recovery of the takeaway and fast food sales in SA has been stronger compared to the restaurants segment. Despite SUR restaurant brands having some takeaway sales component, SUR has not fully captured the higher recovery rate of this segment which has resulted in lost market share for the group. We think the virtual kitchen initiative is a smart alternative to the Dark Kitchen concept as it requires minimal additional capital investment while expanding SUR’s online customer base. The new management team have presented various strategies which we believe provide the business with some exciting growth opportunities. We highlight some risks with the RocoMamas drive-thru concept but believe most of it can be offset.
