LISTED food service group Shakey’s Pizza Asia Ventures, Inc. (SPAVI) said it plans to expand its Potato Corner brand into Taiwan and Laos as part of its international growth strategy.
“We have already identified and finalized two more Asian markets; we’re looking at Taiwan and Laos,” SPAVI President and Chief Executive Officer Vicente L. Gregorio said during a virtual briefing on Thursday.
“These are two exciting markets that we believe we would have some ability to scale; these are for Potato Corner,” he added.
Mr. Gregorio said the expansion follows Potato Corner’s entry into Malaysia late last year through a franchisee partner, which is the same group that franchised the brand in Thailand. SPAVI acquired Potato Corner in 2022.
“In Malaysia, our partner there has more than about a dozen stores in just a few months, less than a year. This is a clear indication of our partners who remain very confident and supportive of our brand Potato Corner,” he said.
Mr. Gregorio said SPAVI is seeing “healthy growth” in its international business over the next couple of years, led by the potential of the Potato Corner brand.
As of end-March, SPAVI has 2,671 stores, of which close to a fifth, or 20%, are comprised of international stores.
“We are excited about the potential of our international division. We should see some healthy growth in the next couple of years, barring any external factors beyond our control. Eventually, the international business will be a key component of the total revenue stream of the group,” he said.
“The international part of the business is still in an investment mode, but the potential of one of our brands, Potato Corner, has already been proven. We already are in 15 markets outside the Philippines, and we have 400 stores internationally,” he added.
Meanwhile, SPAVI Chairman Christopher T. Po said the international business allows SPAVI to diversify its operations.
“We won’t be totally reliant on the Philippine market, and we will be able to take advantage of growth opportunities in other parts of the world. There is also diversification by currency. At certain times, it’s also good to have non-peso-related revenue. It’s quite strategic for us,” he said.
“The international business is growing faster than the domestic business given that the runway is still wide. Over time, you’ll see that 20% increase, but our focus is doing it organically with our own brands,” he added.
SPAVI shares rose by 0.65%, or five centavos, to P7.80 per share on Thursday. — Revin Mikhael D. Ochave
