Shakey's bullish on 2021, targets 30 new stores

Shakey's Pizza Asia Ventures Inc. is set to restart its network expansion with the opening of 30 stores this year, after buildup was put on hold in 2020 due to the coronavirus disease 2019 (COVID-19) pandemic.

In a regulatory filing, Shakey's Pizza said it plans to open 15 new Shakey's stores and 15 new Peri-Peri Charcoal Chicken outlets this year to add to the 245 Shakey's and 34 Peri-Peri outlets it had in end-2020.

"With evolving consumer habits brought about by the pandemic, our network expansion strategy has likewise adapted to ensure we maximize both our in-store and out-of-store presence," Shakey's president and chief executive officer Vicente Gregorio.

"Our new openings this year will cater not only to our guests' dine-in preference, but also their increasing need for more convenient and flexible out-of-store options," he added.

The upcoming Shakey's stores are expected to penetrate second and third-tier cities outside Metro Manila, while the Peri-Peri outlets will be put up in currently unserved markets that do not have access to the brand.

The firm noted, however, that small store formats are likely to reduce investment requirements relative to the traditional brick-and-mortar stores and to ensure that return on capital remains high.

It is also looking to build locations that have both the Shakey's and Peri brands to maximize its existing asset base, on top of the ghost kitchens or kitchen extensions to strengthen its presence in delivery as off-premise channels are gaining prominence.

"2021 will definitely be an exciting 'bounce-back' year," said Gregorio, noting that new business innovations are also in the pipeline.

Aside from the Philippines, Shakey's also owns the perpetual rights to the Shakey's brand for the Middle East, Asia (excluding Japan and Malaysia), Australia and Oceania.

It earlier finalized a franchising agreement that will allow it to make inroads in Singapore, with a new store scheduled to be opened at the Lucky Plaza mall along Orchard Road, in a seven-year deal with Singapore's Brenrich Pte. Ltd.

Shares in the company opened Tuesday at P7.49 apiece, unchanged from Monday's finish.—AOL, GMA News