Singapore investors eye Shakey’s stake

MANILA, Philippines - A group of Singaporean investors has signified interest to invest in pizza restaurant chain Shakey’s Philippines, company sources said.

Shakey’s general manager Jorge Concepcion told The STAR discussions are currently ongoing with a Singapore-based financial institution which has expressed interest in acquiring a stake in Shakey’s.

“The final details are still being worked out,” Concepcion said.

He said an official announcement would be made “soon.”

Aside from Singaporean investors, Concepcion said many foreign and local groups have likewise expressed interest in investing in Shakey’s Philippines given its good financial performance.

“There have been many different investors that have expressed interest. There are different options that are available and the owners are evaluating these options,” he said.

“None of them are restaurant operators. They just like our numbers,” he added.

Last year, Shakey’s generated P6.5 billion in sales, up from P5.7 billion in 2014 and P5 billion in 2013, Concepcion said.

Apart from Shakey’s, the Prieto family also owns major interests in other food franchises in the Philippines such as Dunkin Donuts, Racks, Tia Marias and Project Pie.

The group, through International Family Food Services Inc., had 165 branches nationwide at the end of October last year. It expects to hit 200 to 250 stores annually over the next five years.

IFFSI owns 60 percent of all Shakey’s branches, while the rest are owned by franchisees.

For this year, the group has allotted P500 million for capital expenditures, same level as 2014 and 2015.

IFFSI operates independently from Shakey’s Pizza US, which only has 60 branches.

In 1975, San Miguel Corp. acquired the Philippine franchise of Shakey’s to boost the market for its draft beer.