Local Shakey’s eyes Middle East market
Shakey’s Pizza Asia Ventures, Inc., (SPAVI), the local Shakey’s Pizza franchise operator, is aiming to have a foothold in the Middle Eastern pizza market within the next six months.
SPAVI President Vicente L. Gregorio said they are now ironing out plans for their first overseas foray as it is also the master franchisor for the Shakey’s pizza brand in the Middle East, Asia (ex-Japan and Malaysia), China, Australia, and Oceania.
Gregorio said the company hopes to put up 10 branches in Kuwait in the next seven years but stressed that the company they are taking their time in choosing the right potential partners for their ventures outside the Philippines.
For now, the company is prioritizing the expansion of the local Shakey’s network which was started as early as 1975. “We’re focused on local expansion mostly in Visayas and Mindanao,” said Gregorio.
As of the end of June this year, SPAVI had 177 stores; of which 106 are company-owned while 71 are franchised stores.
SPAVI expects to open a total of 17 new stores this year, 12 of which are company-owned stores and five are franchised stores. It has allocated R533 million as capital expenditures for 2016, of which R183.2 million has already been spent.
A new store costs between R15 million for the smallest format stores up to R35 million for a free standing stores, with store opening taking approximately three to four months after the lease for a store site is signed.
For next year, it has identified 20 target areas for expansion, of which 10 have already been signed or are under negotiation. The company is confident about its prospects in the years to come as it rides the growth of the food service sector.
SPAVI is undertaking a R3.96-billion initial public offering of 352 million primary and secondary shares, including 46 million shares as oversubscription option at an offer price of R11.26 per share. The offer period is set December 2 to 8, 2016, with listing set for December 15, 2016.