SHAKEY’S Pizza Asia Ventures, Inc. (SPAVI), the listed firm behind Shakey’s Pizza and Peri-Peri Charcoal Chicken, is reducing its capital spending for the year to focus on reopening its store network and ramping up its delivery business.
“[W]e continue to prioritize a strong cash and liquidity position, and have taken action to reduce our original capex budgets by 70%, as well as suspended all national advertising, focusing on store opening and delivery availability instead,” SPAVI President and Chief Executive Officer Vicente P. Gregorio said in a statement yesterday. It did not provide the specific amount of its capex.
SPAVI said it has now partially opened more than 200 stores, which represent almost 75% of the company’s store network. These stores are currently limited to delivery and carry-out services and are open on shortened hours and reduced workforce.
In the coming weeks, as the government relaxes quarantine measures in different parts of the country, SPAVI said it was looking to open more stores such as those in malls.
“[W]e are looking beyond the short-term disruptions. In a new ‘post COVID’ world, we believe that a strong brand available in multiple channels is key. As a result, we have been strengthening our off-premise capabilities which include further investing in our existing in-house delivery platform, working closely with third-party aggregators, and building on new innovations such as the curb side pick-up,” Mr. Gregorio said.
The company is yet to report its earnings for the first quarter. In 2019, its net income grew 10% to P923 million, driven by an 11% growth in sales to P10.4 billion.
Shares in SPAVI at the stock exchange slipped 15 centavos or 2.30% to P6.37 each on Thursday. — Denise A. Valdez