Optimistic on the growth of fast casual restaurants in the Philippines, Lorenzo-controlled Pancake House, Inc. (PHI) has committed to put up more outlets in the next three years. The PHI Group is composed of its flagship brand Pancake House, Dencio’s Restaurants and newly acquired Teriyaki Boy.
During an investors briefing held by the company last week, PHI Chairman Martin Lorenzo said in the next three years, the Group is expected to end with a branch network of 126 stores, 74 of which would be Pancake House, 30 would be Dencio’s and the remaining 22 would be Teriyaki Boy.
By the end of this year, the Group will end with 62 Pancake House branches, 20 Dencio’s Restaurant branches and 10 Teriyaki Boy branches. Next year, Pancake House branches will increase to 68, Dencio’s branches will increase to 25 and Teriyaki Boy branches will increase to 16.
By 2007, Pancake House will already have 74 branches, Dencio’s Restaurants will have 30 branches and Teriyaki Boy will have 22 branches. In total the PHI Group will have 126 branches by the year 2007.
Meantime, PHI said Dencio’s Restaurants which it acquired last year will soon return to profitability given efforts of the company to improve cost structures, increase sales levels of existing outlets and widen its store network.
Dencio’s is expected to end the year with a
P14-million net loss but will reverse this next year to a net income of P6 million and further sustaining this with a projected net income of P8 million in 2007.
Teriyaki Boy, on the other hand, is projected to have net income of
P18 million next year that would further grow to P35 million by the year 2007. Teriyaki Boy was just acquired this year by PHI. The Group owns 70 percent of the Teriyaki Boy business.
Meantime Pancake House, the flagship brand of PHI is expected to end the year with a net income of
P38 million. Next year, its net income should reach P50 million and then improve further to P56 million in 2007, PHI said.
On a consolidated basis, the PHI Group eyes to end the year with a net income of
P24 million. With its store expansion program along with other cost reduction measures, the Group expects its net income to grow to P99 million by 2007.
Income projects seem achievable for the company given recent financial results. PHI recently reported a net income of
P13.8 million for the first nine months of the year, 11 percent higher that its net income of P12.4 million in the previous year.
The company performed well in the third quarter of the year reversing its losses during the same quarter in 2004 to a net income
P6.81 million for the third quarter of this year. 
