Despite posting losses due to the Covid-19 pandemic, pizza chain Shakey's still plans to launch its network expansion strategy this year.
Shakey’s sales dropped after strict lockdown measures were imposed nationwide from March to May. This forced 91 percent of its stores to close down temporarily
DESPITE incurring a staggering of P247 million loss last year due to pandemic-induced economic downturn, top officials of Shakey’s Pizza are convinced that they can still recover through the efforts of their team and the business innovations they’ve put in place to adjust to the new normal.
This, as the pizza chain registered an income of P865.23 million in 2019 which was a stark contrast to the P247 million loss they suffered in 2020.
Vicente Gregorio, the company’s president and chief executive officer, said they actually posted an income of P215 million for the fourth quarter of 2020, but it was not enough to offset the losses from the first three quarters of the year due to the pandemic.
“Despite our net loss for the year, we’ve managed to pull through with positive cash flows, improved cost structures, and greater ability to address off-premise demand,” he said.
Shakey’s sales dropped after strict lockdown measures were imposed nationwide from March to May. This forced 91 percent of its stores to close down temporarily.
When measures were eased, store traffic slowly crept up. However, the company still hit a loss of P171.95 million for the third quarter.
By the fourth quarter, system-wide sales reached P1.8 billion, a 33-percent growth due to the Christmas season. Holiday pick-up, increased dine-in guests, and consistent delivery services are to be thanked for the increase.
The company ended with a total sales of P6.6 billion, which is only 64 percent of its sales in 2019.
This year, the firm is hopeful that they will be able to adapt to the changing business environment in the country.
They will be launching a store network expansion strategy that they postponed due to Covid-19.
They will also be reducing investment requirements for brick and mortar stores to make sure that payback periods are short and their return on capital stays high despite the fluctuations in sales amid the pandemic.
On top of this, the company also aims to have three of its flagship brands in one store in multiple locations, particularly Shakey’s, Peri-Peri Charcoal Chicken, and R and B Milk Tea. (MO)
Tags: #economy, #Covid19, #Shakeys