Pancake House revs up expansion to stay ahead

To keep its leadership in the casual dining market intact, restaurant operator Pancake House Inc. is expanding both in the domestic and regional markets that include UAE, Brunei, Kuwait, Hawaii and Singapore.

"Typically restaurants in this category do not offer full table service, but offer a higher quality of food and atmosphere than traditional fast food," according to industry information provider Franchise Help.
 

Pancake House is opening 30 new stores in the Philippines, setting aside P150 million for that, president Martin Lorenzo told reporters at the sidelines of the company’s annual stockholders meeting on Friday.

 

Its pizza chain Yellow Cab will soon be in United Arab Emirates (UAE) and Singapore, after the company  signed franchise development agreements to bring the brand in those countries.

 

Flagship restaurant Pancake House would soon open in Brunei and Kuwait, and Japanese restaurant Teriyaki Boy would soon be in Hawaii.

 

“The investment we made in our national franchising team is paying off,” Lorenzo said. “We are now working in areas in UAE to grow and open the 15 stores in the next 3 years,” he added.

 

At the end of 2013, Pancake House would have 350 stores of which 20 are overseas. “We're surely growing in the Middle East for Yellow Cab and South East Asia for Pancake House,” Lorenzo said.

 

For 2014, Lorenzo said the company is eyeing acquisitions—particularly stores with a 60-outlet network and at least P2 billion in sales.

 

In 2011, Pancake House acquired Yellow Cab for P800 million. Aside from Pancake House and Teriyaki Boy, the group also owns Sizzling Pepper Streak, Maple, Dencio’s, Le Couer de France and Kabisera.

        

In the first quarter of the year, Pancake House said net income grew 22 percent to P40.6 million from P33.2 million a year earlier. Revenues improved by 6.5 percent to P884.19 million from P829.94 million in the same comparable period.

 

The company expects net income to grow between 45 to 50 percent this year due to store expansion and strong same-store sales, Lorenzo said. — VS, GMA News