Spur Steak & Grill, the South African steakhouse brand, is to trial a new smaller format in the UK, to combat falling revenue, which was impacted by “high levels of competition”, M&C Report understands.

The group has targeted locations in Corby and Glasgow for the smaller format Spur brand, to be known as RBW (Ribs Burgers Wings), with plans to franchise the brand if it proves successful.

At the same time, the company is set to close its Mohawk Spur site in Wandsworth this weekend due to sustained trading losses, bringing its number of UK restaurants to four.

The company, which operates c500 restaurants, with the majority under the Spur brand in South Africa, saw its international revenue, comprising franchise revenue and company-owned restaurant turnover, increase by 0.3% in the six months to December.

Chief executive Pierre Van Tonder said: “The performance in the UK was disappointing as revenue was impacted by the high levels of competition and the closure of a company-owned store in the prior period. Profitability was also impacted by higher labour and food costs.”

In the six-month period, restaurant sales across the wider group increased 14.1% to R3.2bn (£179.7m), with comparable profit up 15.3%.