Shakey’sPizza Asia Ventures, Inc. (SPAVI), or more popularly known as Shakey’s is oneof the most well recognized pizza chains in the country and is well known forits variety of pizza flavors. Shakey’s was the brainchild of Sherwood “Shakey”Johnson in Sacramento California. Initially called “Ye Public House,” therestaurant was established for pizza and beer (Shakey’s Website, 2017). The company first opened its door to Filipinosin 1975 with a small restaurant in Makati City, Metro Manila. The company wasfirst bought to the country by San Miguel Corporation, as a means to promoteits 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 forthe country in perpetuity, thus operating as a different entity from its mothercompany in the United States. BakeMaster’s, Inc., the commissary behindShakey’s doughs, sauces and other raw materials, was established in 2005. Thecompany reached a milestone in 2009 when it reached a system-wide store countof 100.
The company reached another milestone in 2014 when it acquired theShakey’s trademark for Asia, including the Middle East and China (but excludingJapan 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 204stores nationwide, comprising of 120 company-owned stores and 84 franchisedstores as of December 2017.Theprimary target of Shakey’s is families and social groups in the socioeconomicclasses (SEC) A, B and C, particularly in the urbanized cities in the countryand those who prefer full dining restaurants over fast food establishments. Thecompany has been growing in sales and in market shares the previous years. Asof 2016, their net sales amounted to PHP 5,945,608,528 with a net income of PHP759,185, 2015 or a net profit margin or 9%.
The company proudly brags of itsdouble digit growth in system-wide sales in the last four years. Shakey’sis classified in the subsector full-service restaurant. A full servicerestaurant is defined by Euromonitor (2017) as a sit-down restaurant, whoseprincipal products are its food more than the drinks and consists of tableservice, relatively higher food quality than quick-service restaurants. Itsmenu offerings have multiple selections that utilize multiple steps in the foodproduct preparation. To be classified as “chained,” there needs to be at least10 units of such chain in the country. This is not applicable for internationalchains that have less than 10 units in a country, as they are still consideredchained units.Inthis 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%. Thebreakdown of market shares in the chained full-service restaurants subsector asof 2016 can be seen in figure 1 (Euromonitor, 2017).In2016, Century Pacific Group Inc. (CPGI) of the Po family, along withSingaporean sovereign investor GIC Private Limited, acquired a controllingstake in Shakey’s at 52%.
Apart from control over Shakey’s, Bakemasters Inc andother companies and holdings, were also acquired by the company. It waspreviously under the control of International Family Food Services Inc. (IFFSI)of the Prieto family, however, the family sold majority of their shares to theaforementioned companies, but continues to hold a minority stake in the companyat 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.
CenturyPacific 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 leadingexporter of tuna. Some of its brands include Century Tuna, Argentina CornedBeef, 555 Sardines, Century Quality, Swift, Birch Tree, Angel, Blue Bay, Wow,Fresza, Lucky 7 and Shanghai, among others (CPGI, 2017).