Restaurant operator Shakeys Pizza Asia Ventures Inc. said Thursday it expects to sustain its double-digit growth this year as consumer spending will likely recover in the second half.
Shakey’s president and chief executive Vicente Gregorio said in an interview following the company’s annual stockholders’ meeting that while the first half was challenging for the restaurant business because of the inflationary environment, the second half presents opportunities for margin recovery.
“We see this year to be a better performing in the second half of the year where some of our input costs are already expected to go down,” Gregorio said.
“We see the improving sales will be able to offset and provide us the coverage for fixed costs and therefore margin base is expected to improve,” he said.
Shakey’s expects sales and net income to grow by mid-teens in 2024, he said.
Shakey’s saw its net income decline 15 percent in the first quarter to P171.5 million from P200.8 million in the same period last year, on higher operating expenses due to investments in the organization and sales-generating activities.
Systemwide sales amounted to P4.8 billion, up 15 percent from a year ago due to expansion program and sustained same-store sales.
Gregorio said the group would continue to expand its network with the opening of 400 stores for 2024.
Bulk of the new stores will be under Potato Corner stores, which require smaller investments and offer franchising opportunities for entrepreneurs.
It also plans to open 20 Shakey’s stores, a record opening for the brand. Most of these new stores will open in the second half.
Gregorio said the group would also continue to explore opportunities in new markets overseas, particularly in China and Malaysia.
“We have opened several stores in China, and we are open to new markets like Malaysia. The first few stores in these areas have done very well so this gives us further motivation and encouragement,” Gregorio said.
Shakey’s is present in 14 countries. It ended March 2024 with 268 outlets of its flagship brand Shakey’s and 1,874 branches of Potato Corner.
