Shakey’s Pauses Expansion Plans Because of Covid-19

Shakey’s Pizza Asia Ventures Inc. has announced it has put its expansion plans “on pause”, instead focusing on digital channels and delivery services to adjust for the global pandemic.

Vicente Gregorio, director, president and CEO of Shakey’s, said during a virtual stockholders meeting, “What was supposed to be a record breaking year in terms of organic expansion has now been put on pause. Prudence dictates that we review all our existing networks, as well as our planned expansion strategy amidst our economic uncertainties brought about by the crisis.”

Shakey’s deferred the opening of 38 new stores that were planned for 2020. As of now, at least 95% of its network or 267 branches are operational, compared to 24 that were open in the end or March.

Gregorio said that profits for the first half of the year had “significantly” declined compared to last year due to the imposed quarantine and lockdown, but with company belt-tightening measures the “quintessential” pizza would survive the pandemic.

Shakey’s projects the recovery to pre-pandemic levels may happen in 2022 to 2023.

“Our pre-COVID balance sheet provides us some room, and we remain confident that, while we put our growth-oriented strategy on pause, we will be more than ready to revert to these plans when the good times return,” Gregorio said.

“Until then we will focus on our efforts on maximizing existing assets, most especially those geared to guests who remained at home…We are geared up to not only survive but also thrive,” he added.