IHOP owner allots P500M for capex
MANILA, Philippines - Global Restaurant Concepts Inc. (GRCI), partly-owned by the Zubiri family, is setting aside around P500 million for capital expenditures in line with its expansion program this year, a company official said.
GRCI vice-chairman Manuel Zubiri, in an interview on the sidelines of the celebration of the first anniversary of IHOP restaurants’ operations in the Philippines, said bulk of the capex would be used to beef up the number of IHOP branches to about 12 this year.
Zubiri said they have a contract with US-based International House of Pancakes to put up at least 20 IHOP branches within a five-year period. Currently, IHOP has three branches: in Bonifacio Global City, UP Town Center and Entertainment Mall of SM Mall of Asia.
The new branches are expected to be put up in Century Mall, Filinvest Mall, Gateway, Rockwell Business Center, Robinsons Magnolia, Eastwood and Fairview Terraces. Each store will cost between P10 million to P12 million to construct.
The GRCI official said they hope to complete the 20 IHOP branches by the end of 2015.
He said if demand is high, they might apply for 40-50 stores in all prime areas nationwide. All the 20 branches will be located in Metro Manila and nearby provinces.
He said they would welcome joint venture partners once they are allowed by their US counterparts to open the IHOP brand for franchisers.
In the first five years, Zubiri said they expect income from IHOP to grow about 10-12 percent.
GRCI is a 100- percent Filipino-owned company which has been introducing, developing and operating unique restaurant concepts that caters to the maturing demands of Filipinos since 1997. They have grown the exclusive Philippine franchise of California Pizza Kitchen to 10 dining outlets and added world-famous restaurant brands such as P. F. Chang Morelli’s Gelato, IHOP, Gyu-Kaku and Mad for Garlic.
For the group, GRCI chief finance officer Griffith Go said they aim an annual income growth of 25 percent.
Aside from IHOP, the group is also eyeing to put up 10 more branches for other of its restaurant brands.
Go said they have also started to expand operations in Malaysia where they established the first Morelli brand in Kuala Lumpur. They are eyeing to put up a second branch also in Malaysia this year.