MANILA, Philippines – Shakey’s Pizza Asia Ventures Inc. on Friday, December 24, announced it is acquiring leading food kiosk brand Potato Corner.
Shakey’s, owned by the Po family, will purchase assets and intellectual property relating to the Potato Corner business.
The acquisition will also involve owning and operating all Potato Corner stores, as well as serving as brand owner and franchisor of stores being operated by franchisees both domestically and internationally.
The amount of the deal was not disclosed.
Potato Corner was established in 1992 and currently has over 1,000 outlets.
“Potato Corner is a bankable addition to Shakey’s. Its co-founder, Jose Magsaysay, has truly established a solid brand foundation with a product that universally resonates with consumers,” said Vicente Gregorio, president and chief executive officer of Shakey’s.
In 2020, Magsaysay told Rappler that the pandemic caused closures and losses and forced them to rethink expansion plans.
Meanwhile, Shakey’s continues to weather through the pandemic, posting a net loss of P35 million for the first nine months of 2021, but still a significant improvement from the net loss of P462 million in the same period a year ago.
“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,” Gregorio said.
Christopher Po, Shakey’s chairman, noted that Potato Corner’s small and relatively low-cost store format, healthy margins, and fast payback create an attractive investment for micro, small, and medium-sized enterprises.
“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 said.
The Po family also acquired the Tung family’s legacy brand Ligo sardines on Christmas Eve.
Shares of Shakey’s jumped as much as 17.3% before closing 8.9% higher on Friday. – Rappler.com
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