SHAKEY’S PIZZA ACQUIRES LEADING FOOD KIOSK BRAND ‘POTATO CORNER’

Shakey’s Pizza Asia Ventures, Inc., (PSE:PIZZA), the leading full-service restaurant chain group in the Philippines, announced the acquisition of Potato Corner, one of the leading food kiosk brands in the country.

Under the Asset Purchase Agreement signed today, PIZZA will purchase assets and intellectual property relating to the Potato Corner business.

The acquisition by PIZZA will also involve owning and operating all company-owned stores, as well as serving as brand-owner and franchisor of stores being operated by franchisees both domestically and internationally.

Potato Corner is widely-known as one of the leading and most established food kiosk chains in the Philippines. It is a heritage brand made famous by its freshly cooked flavored fries, a well-loved indulgent snack by kids and adults alike.

Since its inception in 1992, the brand has built a vast network of over 1,000 outlets domestically and has a growing international footprint in Asia and beyond. Over the years, the business has built a strong brand equity and demonstrated robust performance, attractive margins, and the capability to scale – all aligned with PIZZA’s criteria for acquisitions.

Like most food service businesses in the country, Potato Corner took a blow during the pandemic. Yet, despite challenging circumstances, the business demonstrated resilience, posting profitable returns.

Vicente Gregorio, the President and Chief Executive Officer of PIZZA, said, “Potato Corner is a bankable addition to PIZZA’s roster of WOW brands. Its co-founder, Jose Magsaysay, has truly established a solid brand foundation with a product that universally resonates with consumers. The current scale of Potato Corner and the brand love that it receives from consumers are a testament to that. We, at PIZZA, are grateful that Potato Corner’s former owners are entrusting the brand to our team. We look forward to continuing on its legacy and strengthening the Potato Corner brand even more.” 

Gregorio continued, “This is an accretive acquisition. Nonetheless, we will pursue maximizing synergies and wielding our expertise in business development, franchise management, and supply chain operations to further grow the brand sustainably.”

Christopher Po, PIZZA Chairman, said, “In addition, PC will allow us to cultivate entrepreneurship as one of our advocacies. Potato Corner has over 600 MSME franchisees. We intend to work closely with them towards making their business successful. As we grow Potato Corner’s business, the more we promote entrepreneurship.”

As an established player in the kiosk industry, Potato Corner is often the brand of choice among budding entrepreneurs. The brand’s market leadership, small and relatively low-cost store format, healthy margins, and fast payback create an attractive investment for micro, small, and medium-sized enterprises. Over the years, the brand has supported a multitude of entrepreneurs, helping their businesses flourish along with Potato Corner’s growth.

“I am excited by the attractive business prospects of Potato Corner. I believe the Shakey’s Management team has the capabilities needed for Potato Corner to prosper and grow,” Po continued.

According to Gregorio, the addition of Potato Corner can further boost PIZZA’s reopening play in the coming year. Its global presence in more than 10 countries helps to further diversify PIZZA’s operations and revenue streams.

PIZZA has been actively pursuing store network expansion. The Company recently announced that it has opened more than 30 net new stores for the year, exceeding its initial plan for 2021.

The Company’s recent string of new store openings includes a Shakey’s Pizza franchise outside of Metro Manila, a strategy to gain more reach throughout the country. Peri-Peri Charcoal Chicken & Sauce Bar recently achieved its 50th store milestone, which comes in a full store format with a Park & Order option. PIZZA also opened the first independent R&B outlet in the country, the first drive through milk tea store in the Philippines. The Company also opened a Shakey’s store in Dubai, its 4th international store to-date.

Recently, PIZZA also announced the opening of a new Project Pie outlet at Shopwise Makati, in collaboration with the Gokongwei group.

Gregorio added, “PIZZA has had its fair share of challenges, weathering through 2020 and 2021. Yet, our vision remains the same – to build and scale a portfolio of industry-leading WOW brands with strong brand equity and industry-leading margins. We started with Shakey’s Pizza, then added Peri-Peri and R&B. Now, we will have Potato Corner in our roster. 2022 is bound to be an exciting reopening year.”

About PIZZA:

Shakey’s has been creating over 40 years of great times and great memories. Shakey’s is one of the leading operators of Fast Casual Restaurants in the Philippines, focused on family casual dining. It maintains market leadership in both the chained pizza full-service and chained full-service restaurant categories. Shakey’s believes its superior value arises from its differentiated menu offerings, high-quality products, and a mission to consistently provide great times and great memories to every Shakey’s guest. Peri-Peri is an emerging fast cast casual and full-service restaurant brand in the Philippines. Its mainstay is charcoal-grilled chicken, marinated for 24 hours, served with an assortment of unique sauces to choose from. Over the last few years, the business has demonstrated consistent profitability, brand strength, and robust growth in both system wide sales and store count.