NEWLY LISTED pizza chain operator Shakey’s Pizza Asia Ventures Inc. (SPAVI) expects its store count to reach 250 to 300 in the next five years as the company launches an aggressive expansion plan following a successful market debut on Thursday.
Vicente Gregorio, SPAVI president and chief executive officer, said the company is eyeing 20 store openings in 2017 and 12 to 15 outlet launches by 2018 and beyond.
“Hard to say that Shakey’s might be a 1,000-store brand, but 250 to 300 is within the horizon, maybe in three to five years,” Gregorio said.
“The potential to expand outside Metro Manila is definitely there. Growth is more inclusive. The middle class and the purchasing power is growing. We will take advantage of that and position to the growing middle class… It’s still a long way. But if the economy continues to grow at this pace of 6 percent to 7 percent, it will be good for the business,” he added.
SPAVI listed on the Philippine Stock Exchange (PSE) on Thursday with the ticker symbol PIZZA following a successful initial public offering (IPO) of 352 million shares. The company raised P3.96 billion from the IPO, which was five times oversubscribed.
On its first trading day, the stock rose 7.46 percent or 84 centavos to P12.10 per share from the P11.26 offer price, defying broader market weakness.
To date, Shakey’s has 180 stores nationwide, 64 of which are in the Visayas and Mindanao region. The company aims to open four more stores before 2016 ends.
Should the company achieve the maximum of 18 stores per year by 2018 onwards, there would be 92 additional stores which will bring store count to 276 in the Philippines, still excluding upcoming international ventures.
Gregorio said a Shakey’s outlet costs P20 million to build. Given their targeted store count, that would amount to an expenditure program of P1.84 billion in five years.
SPAVI is part of the Shakey’s group worldwide. Shakey’s USA Inc. is responsible for developing Shakey’s in
North, Central and South America while SPAVI fully owns and holds the rights to the Shakey’s brand in the Middle East, Asia excluding Japan and Malaysia, Australia and New Zealand.
SPAVI recently inked its first franchise agreement with Al Tamayuz International Management Company to open 10 Shakey’s stores in Kuwait in a span of seven years.
The company is allotting P400 million in capital expenditures for next year. It is majority owned by the Po Family’s Century Pacific Group Inc. (CPGI), parent of listed tuna canner Century Pacific Food Inc. (CNPF), and Arran Investment Pte Ltd., which is an affiliate of Singapore’s GIC Private Ltd.