SHAKEY’S Philippines is planning to open at least 10 company-owned stores yearly until 2020, which may translate to an investment of P1.25 billion over the five-year period.
By 2020, the casual-dining pizza chain sees its total store count reaching 200 to 250, franchises included, from its existing 165.
Shakey’s, operated by International Family Food Services Inc. in the Philippines, bared its expansion plan for the near future in a news conference on Thursday.
“In terms of growth, we’re looking at having a total count of 200 to 250 stores in the next five years. We have 165 stores now, and ending the year with 169 stores,” General Manager of Shakey’s Philippines Jorge Q. Concepcion.
To reach the 200 to 250 store goal by 2020, the 10 company-owned stores will be augmented with at least six franchise stores, for a total of 16 Shakey’s stores yearly.
“Generally, only 30 percent to 40 percent of our stores are franchisees. Other companies look to franchisees as a source for income; Shakey’s is not like that. We decide on franchising if there will be some value-adding to that decision,” Concepcion said.
Opening a store costs about P15 million to P25 million each, with the Shakey’s free-standing format—the largest store format of the pizza chain—costing nearer the higher end of the range.
The American pizza brand has undertaken a gradual expansion plan over the past two years, opening around 10 to 12 stores annually.
This year, 15 new stores have been inaugurated, with the company shifting to larger-format stores recently. Even with this shift, Shakey’s still sees growth in the mall-based format.
In terms of revenues, the pizza-parlor chain is harboring a rosy outlook for 2015, as it looks likely to hit P6.5 billion this year, from P5.6 billion last year.
This is on the back of its steady expansion plan, as well as the continued innovation of its menu offerings.
For 2016, the company sees another 15-percent improvement, given the chain’s uptrend growth over the last three years.
“We’ve been having double-digit growth for the last 12 years. We grew 10 percent in 2013. Our 2014 growth was at 12 percent, and this year, we’re tracking between 14 percent and 15 percent,” Concepcion said.