Saturday, 3 July 2010

Pancake buying Indon, Thai restaurant chains

by Jenniffer B. Austria
Manila Standard
http://www.manilastandardtoday.com/insideBusiness.htm?f=2010/july/2/business2.isx&d=2010/july/2

Pancake House Inc. is expanding in Southeast Asia by acquiring restaurant chains in Thailand and Indonesia.

Pancake House president Martin Lorenzo told reporters after the annual stockholders’ meeting that the company was in talks with the owners of one restaurant in Indonesia and another in Thailand for the planned acquisition. The purchase of the two brands is expected to cost between $10 million and $15 million.

Lorenzo, without naming the restaurant brands, said he hoped the transactions would be completed within the year.

He said the Indonesian restaurant had 80 outlets while the Thai chain had 30. Both brands are in the fast casual segment of the market with cashflow of between $6 million and $7 million annually.

“We believe that the fastest way to expand in Southeast Asia is by acquiring brands in these areas,” Lorenzo said.

He said the acquisition of the two restaurants would increase the contribution of overseas operations to 40 percent of the company’s revenues from just less than 5 percent.

The local company has several Pancake House branches in Malaysia.

Pancake House is looking at system-wide sales to grow by 15 percent to P2.6 billion from P2.2 billion in 2009 and cashflow to increase to P340 million from P300 million a year ago.

Pancake House operates several restaurant brands, including its flagship brand Pancake House, Dencio’s, Kabisera, Singkit, Teriyaki Boy, Sizzlin Pepper Steak and Le Coeur de France.

Lorenzo, meanwhile, said the company planned to acquire a popular roadside barbeque restaurant and transform into a fastfood chain.

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