Shakey’s Pizza buys Potato Corner

Casual dining restaurant chain Shakey’s Pizza Asia Ventures Inc. (PIZZA) is bent on expanding its business as it acquires leading food kiosk brand Potato Corner.

In a disclosure to the Philippine Stock Exchange on Friday, Shakey’s said it signed an asset purchase agreement with Potato Corner involving the latter’s assets and intellectual property.

The Po family-led pizza parlor chain did not disclose the amount of the transaction.

However, it said that the acquisition will involve owning and operating all Potato Corner company-owned stores, as well as serving as brand-owner and franchisor of stores being operated by franchisees both domestically and internationally.

Potato Corner is widely-known as one of the leading and most established food kiosk chains in the Philippines.

It is a heritage brand made famous by its freshly cooked flavored fries, a well-loved indulgent snack by kids and adults alike.

Since its inception in 1992, the brand has built a vast network of over 1,000 outlets domestically and has a growing international footprint in Asia and beyond.

Over the years, the business has built a strong brand equity and demonstrated robust performance, attractive margins, and the capability to scale – all aligned with Shakey’s criteria for acquisitions, the listed company said.

Like most food service businesses in the country, Potato Corner took a blow during the pandemic, it said.

Yet, despite challenging circumstances, the business demonstrated resilience, posting profitable returns, it added.

“Potato Corner is a bankable addition to PIZZA’s roster of WOW brands. Its co-founder, Jose Magsaysay, has truly established a solid brand foundation with a product that universally resonates with consumers. The current scale of Potato Corner and the brand love that it receives from consumers are a testament to that. We, at PIZZA, are grateful that Potato Corner’s former owners are entrusting the brand to our team. We look forward to continuing on its legacy and strengthening the Potato Corner brand even more,” said Vicente Gregorio, president and CEO of Shakey’s.

“This is an accretive acquisition. Nonetheless, we will pursue maximizing synergies and wielding our expertise in business development, franchise management, and supply chain operations to further grow the brand sustainably,” Gregorio added.

Shakey’s chairman Christopher Po said the company’s acquisition of Potato Corner “will allow us to cultivate entrepreneurship as one of our advocacies. Potato Corner has over 600 MSME (micro, small and medium) franchisees. We intend to work closely with them towards making their business successful. As we grow Potato Corner’s business, the more we promote entrepreneurship.”

“I am excited by the attractive business prospects of Potato Corner. I believe the Shakey’s Management team has the capabilities needed for Potato Corner to prosper and grow,” Po said. — LA, GMA News