Kuya J open to new investors, to spend P100 million for expansion

MANILA, Philippines — Kuya J Food Group Inc., owner of homegrown restaurant chain Kuya J and the exclusive master franchise holder in the Philippines of American fast food chain Popeyes, is open to welcoming new investors that will help support and accelerate the group’s growth.

Kuya J Food Group president Winglip Chang said the group has received feelers from potential investors.

“For us, anything that will enhance our position in the industry, we’re open to that. If there is a good proposal and it will enhance our position and give us more advantage, we’re open to that. The important thing is we are able to grow efficiently and grow profitably,” Chang said in a briefing yesterday.

Aside from Kuya J and Popeyes, the group is also behind Landers Central, Majestic Restaurant and Central Eats.

Chang said the group is also open to adding more brands to its growing portfolio.

He said there were some popular brands that the group was previously looking at acquiring, but the deal did not work out.

“If there are brands interesting to acquire then why not? It’s always a question of opportunities. We don’t want to say that we will stop here. If there is an opportunity, then why not. What is important is we stay relevant as far as the dining industry is concerned. That’s why we continue to innovate and keep evolving,” he said.

Chang said a potential initial public offering has not been discussed by the group so far, but it is something it may consider in the future.

“It all depends on how things will work out in the next couple of years. After the pandemic a lot of things have changed. What is important is for us to be able to make ourselves as efficient as possible,” he said.

For the Kuya J restaurant, the group has allotted around P100 million for its expansion and store renovations.

Kuya J is looking to add three to four new stores to its network this year, while 10 to 15 existing stores will be renovated.

“We think renovation is better than expansion for now so we focus on renovation. But expansion is still in the pipeline,” Kuya J Group chief operating officer Don Tirol said.

At present, Tirol said that about half of Kuya J’s existing 81 stores have been renovated to better and newer versions.

He said the company on the average spends between P5 million and P7 million to renovate a store, depending on the size.

Kuya J’s expansion in the near term will be focused mostly in the Philippines.

“We have inquiries from the Middle East but we feel it is not the right market for us because our signature dish is crispy pata. We’d rather focus first in the Philippines. Growing here, be efficient enough to be profitable and we’ll think about expanding abroad,” Chang said.

In terms of Popeyes, Chang said the group has not set a definitive target number of stores for opening this year.

He said Popeyes currently has around 60 stores in the country.

“It’s always a question of finding the right place. Right now we have to be picky on where we will be locating because admittedly, business is not really as thriving as what it was pre-pandemic, especially with the situation now worldwide. Everything has gone up – cost of ingredients and for raw materials,” he said.

Chang, however, said the group intends to grow Popeyes in Visayas and Mindanao through franchising.