Shakey's streamlines portfolio as cost pressures reshape growth strategy

Shakey’s Pizza Asia Ventures (SPAVI) is prioritising profitability over rapid expansion this year, closing underperforming outlets, implementing modest price increases and tightening operational efficiencies as it responds to mounting cost pressures and softer consumer spending.

The listed restaurant operator has already shut between 15 and 20 stores in 2026, with additional locations still under review, despite surpassing the milestone of 3,000 stores across its portfolio.

"As of this year, we've already surpassed 3,000, which is a good thing. But we're treating this as not letting a good crisis go to waste. We're taking this opportunity to close underperforming stores," SPAVI chairman Christopher T. Po told local press.

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Rather than pursuing aggressive network expansion, the company is treating 2026 as a period of restructuring aimed at strengthening long-term profitability.

The strategy comes as restaurant operators grapple with cautious consumer spending, inflationary pressures and geopolitical uncertainty. Company executives pointed to the ongoing conflict in the Middle East and domestic political developments as factors weighing on consumer confidence and operating costs.

SPAVI president and CEO Vicente L. Gregorio said the company has responded by tightening discretionary spending, negotiating with suppliers, managing foreign exchange exposure and reviewing its store network.

"We definitely will be cutting discretionary costs, and whenever we have a chance, we carefully pass on some of the prices to the consumers," Gregorio said.

While menu prices have increased, the company stressed that adjustments remain below prevailing inflation levels.

Gregorio added that rising utility and transport expenses continue to squeeze margins.

"Like everyone in the industry, we're getting hit, ergo the need to initiate measured price increases," he said.

Beyond pricing, SPAVI sees operational improvements as the main lever for restoring profitability.

The restructuring effort is concentrated primarily on Peri-Peri Charcoal Chicken and Sauce Bar, which management believes offers the greatest opportunity for optimisation compared with the more mature Shakey's Pizza brand.

Potato Corner is also undergoing operational review, although executives continue to see it as one of the group's strongest growth engines. Gregorio revealed that the brand is expanding internationally, with its first US outlet set to open shortly.

Meanwhile, the company is maintaining a cautious stance on its smaller concepts, including R&B Milk Tea and Project Pie.

Po noted that the emerging brands contribute less than 2% of the group's business but remain profitable.

He added that R&B Milk Tea is facing changing consumer preferences as demand shifts away from milk tea towards coffee and other beverage categories, while Project Pie continues to serve a complementary role by occupying locations where a Shakey's outlet is not suitable.

Despite the near-term challenges, management expressed optimism that easing geopolitical tensions and lower fuel prices could help support consumer spending in the second half of the year.

"If this continues, then we are more hopeful for the back half of the year," Po said.

Step into PR Asia Philippines 2026 on 9 September in Manila, where communications leaders will unpack the realities of trust, nationalism, misinformation, and polarisation shaping the country’s evolving narrative landscape.

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