The Po brothers expect Potato Corner to immediately boost the bottomline of their restaurant business, Shakey’s Pizza Asia Ventures.
In a briefing with analysts, Shakey’s said Potato Corner’s continued to be profitable even though sales have been down by 50 percent to 60 percent in 2020 and 2021 from pre-pandemic levels.
Shakey’s said Potato Corner has sales of P2 billion from 1,200 stores (75 percent are franchised).
The Po brothers have high expectations for the famous flavored fries brand with Shakey’s management led by president and CEO Vicente Gregorio eyeing to increase sales by as much 20 percent and widen profit margins to the mid-twenties over the next five years.
The Potato Corner purchase, which was championed by bilyonaryo Lance Gokongwei in the Shakey’s board, provides a good fit with the pizza business with synergies expected in purchasing, distribution and back-end operating costs.
Shakey’s already boasts of the highest margins in the industry but Potato Corner has even higher margins than the pizza business.