Shakey’s group returned to profitability in 2021

Vic Gregorio, Shakey’s president and CEO

Shakey’s Pizza Asia Ventures Inc. returned to profitability last year due to a surge in dine-in customers toward the end of 2021 and better margins, with the Po family-led firm saying that favorable business trends would also allow it to continue rapid expansion in 2022.

Shakey’s said in a statement on Friday that unaudited income last year hit P121 million, a turnaround from its P254 million loss in 2020.

Total sales were also higher by 6% to P7 billion while profitability margins more than doubled from 8.8% to 18.6%, it said.

“The fourth quarter was quite significant for us. Quarantine restrictions were easing,” Vic Gregorio, Shakey’s president and CEO, said in the statement.

“We took advantage of that to create momentum and were rewarded with a strong performance,” he added.

The company’s growth was bolstered by a modest store count increase as it opened 37 new outlets last year to end with 316 stores.

Its major brands are the flagship Shakey’s Pizza chain and Peri-Peri Charcoal Chicken. Last December, it also acquired Potato Corner, a popular chain known for its flavored French fries.

Much of Shakey’s 2022 expansion will focus on Potato Corner. Of the 192 new stores set for opening this year, 150 were for Potato Corner while the remaining 42 were for other existing brands.

Potato Corner’s network

When it was acquired, Potato Corner had about 1,000 nationwide outlets and a growing international footprint.

Overall, about P650 million would be allocated for capital expenditures for its store expansion in 2022, Shakey’s said.

“With investments and acquisitions made even in the midst of the pandemic, barring any major disruptions, we see our 2023 bottom line exceeding prepandemic level,” said Shakey’s chief financial officer Manuel del Barrio in the same statement.

He added the company was expected to surpass prepandemic sales with the addition of Potato Corner.

Meanwhile, Shakey’s expects to sustain in its delivery business, one of its growth drivers especially during the pandemic lockdowns.

“With the extensive investments in our digital infrastructure, we aim to exceed guest expectations and elevate the Shakey’s off-premise experience,” Gregorio said.