MANILA, Philippines - Listed pizza parlor chain Shakey’s Pizza Asia Ventures Inc. (SPAVI) is exploring new markets abroad and in the Philippines in line with its continued aggressive expansion program.
SPAVI president and chief executive officer Vicente Gregorio said the company has received “very serious inquiries” from Asia, particularly Indonesia and Myanmar, as well as in New Zealand and Australia for potential expansion.
“The brand enjoys very good recognition and is seen by many outside as a potential brand,” Gregorio said.
“But we want to be also very careful and prudent, making sure that our international expansion is done and executed right. We want our international franchise to be successful so we take time in identifying our right franchise partner,” he added.
The company is opening its first international store in Kuwait in the third quarter.
Under the franchise agreement signed with its partner in Kuwait, 10 stores will be opened in a period of seven years.
In Dubai, the company is set to open 10 stores over a 10-year period.
In the Philippines, Gregorio said the firm intends to increase penetration beyond first-tier cities.
He said opportunities for expansion also abound in the Visayas and Mindanao where the company only has 16 stores to date.
“Despite the current trouble in Mindanao, particularly Marawi, we think there are other places there in the Visayas and Mindanao that would be ready for Shakey’s and I think that kind of expansion will be very good for the company,” Gregorio said.
SPAVI has allocated P500 million this year to open 20 new stores, 11 of which have already been opened to date. It has a total of 180 outlets in the country.
Gregorio said the company expects to continue growing by double digits this year, but slower than that recorded last year due to “headwinds with regard to input and operating expenses.”
The firm saw its net income rise 39 percent last year to P669 million. This year’s target growth is in the mid-teens, according to Gregorio.
“We have increased competition and also with the cost pressures up, so we’re just preparing for the worst case. There are many factors – because of increased competition, competition for locations, for good labor, import costs while not major part of our cost will also be affected because of the peso devaluation so it’s a mix of several factors combined will deliver some pressure on the cost,” he said.