Pizza Asia Ventures, Inc. (SPAVI), or more popularly known as Shakey’s is one
of the most well recognized pizza chains in the country and is well known for
its variety of pizza flavors. Shakey’s was the brainchild of Sherwood “Shakey”
Johnson in Sacramento California. Initially called “Ye Public House,” the
restaurant was established for pizza and beer (Shakey’s Website, 2017).
The company first opened its door to Filipinos
in 1975 with a small restaurant in Makati City, Metro Manila. The company was
first bought to the country by San Miguel Corporation, as a means to promote
its new product, draft beer. It was then bought by the Prieto family in 1987.
It was in the year 1999 when the company acquired the Shakey’s trademark for
the country in perpetuity, thus operating as a different entity from its mother
company in the United States. BakeMaster’s, Inc., the commissary behind
Shakey’s doughs, sauces and other raw materials, was established in 2005. The
company reached a milestone in 2009 when it reached a system-wide store count
of 100. The company reached another milestone in 2014 when it acquired the
Shakey’s trademark for Asia, including the Middle East and China (but excluding
Japan and Malaysia), and Australia and New Zealand (Shakey’s Prospectus, 2017).
From when it first opened its doors in 1975, Shakey’s has expanded to 204
stores nationwide, comprising of 120 company-owned stores and 84 franchised
stores as of December 2017.
primary target of Shakey’s is families and social groups in the socioeconomic
classes (SEC) A, B and C, particularly in the urbanized cities in the country
and those who prefer full dining restaurants over fast food establishments. The
company has been growing in sales and in market shares the previous years. As
of 2016, their net sales amounted to PHP 5,945,608,528 with a net income of PHP
759,185, 2015 or a net profit margin or 9%. The company proudly brags of its
double digit growth in system-wide sales in the last four years.
is classified in the subsector full-service restaurant. A full service
restaurant is defined by Euromonitor (2017) as a sit-down restaurant, whose
principal products are its food more than the drinks and consists of table
service, relatively higher food quality than quick-service restaurants. Its
menu offerings have multiple selections that utilize multiple steps in the food
product preparation. To be classified as “chained,” there needs to be at least
10 units of such chain in the country. This is not applicable for international
chains that have less than 10 units in a country, as they are still considered
this subsector, Shakey’s continues to dominate with a market share of 28.2%,
versus its closes competitors, Pizza Hut at 13.2% and Max’s at 12.7%. The
breakdown of market shares in the chained full-service restaurants subsector as
of 2016 can be seen in figure 1 (Euromonitor, 2017).
2016, Century Pacific Group Inc. (CPGI) of the Po family, along with
Singaporean sovereign investor GIC Private Limited, acquired a controlling
stake in Shakey’s at 52%. Apart from control over Shakey’s, Bakemasters Inc and
other companies and holdings, were also acquired by the company. It was
previously under the control of International Family Food Services Inc. (IFFSI)
of the Prieto family, however, the family sold majority of their shares to the
aforementioned companies, but continues to hold a minority stake in the company
at 3%. Shakey’s new company name is now Shakey’s Pizza Asia Ventures, Inc.
(SPAVI) (Inquirer, 2016). The company was bought by CPGI for PHP 15 billion.
Pacific Group, Inc is a Filipino-owned company that is engaged in development,
marketing and distribution of processed fish, meat, dairy and coconut products.
It is the country’s largest producer of shelf-stable food and is the leading
exporter of tuna. Some of its brands include Century Tuna, Argentina Corned
Beef, 555 Sardines, Century Quality, Swift, Birch Tree, Angel, Blue Bay, Wow,
Fresza, Lucky 7 and Shanghai, among others (CPGI, 2017).