On the spur of the moment…

The first thing you will notice is the long queue to get a table. Not too much of a problem as the tables turn over quickly and you can enjoy a cold lager while you wait.

Observation number two will be the hordes of marauding hooligans under the age of ten, turning the place upside down if they are anything like my thugs, sorry, children.

Now, the number of children is directly attributable to the child-friendly attitude of the chain, with a games room and supervision creating a winning recipe for parents looking to enjoy a burger and beer while their kids run wild.

The other key ingredient to the recent success at Spur, besides their secret sauce of course, is the emergence of a predominantly black middle income super class that is currently consuming as if there is no tomorrow and which has clear aspirational tendencies.

It is the aspirations and consumption patterns of this super class that are up for discussion today. Shaun le Roux and Adrian Clayton at PSG Fund Managers explain.

A host of South African companies have recently made mention of the importance of the emerging black middle income consumer to the results they are achieving.

Simon Sussman of Woolworths ascribes some of their recent success to Woolies' positioning as an aspirational shopping destination, resulting in increasing visits by a new largely black clientele.

While the growth in gross domestic expenditure, spurred on (excuse the pun) by lower interest rates, tax and inflation is a healthy environment for anybody whose business is focussed on the local consumer, it is apparent that many have underestimated their importance and appetite.

We are of the opinion that this is not a one year phenomenon, but a structural multi-year spending bonanza.

Accordingly, investors should consider long-term exposure to some of the shares that one would expect to benefit, though it must be pointed out that in many cases the stocks have enjoyed a very good year or two and are a lot more expensive than they were at the beginning of 2002.

We would certainly accumulate into weakness.