Shakey's Hopes to Turn COVID Loss Around by Staying Faithful to Pizza

Pizza delivery and takeout grew at a "record-breaking" pace during the coronavirus quarantine that ate up most of the first half. However, it was not enough to offset the loss of dine-in customers as sales took a hit and Shakey's lost P290 million in the January to June period.

The net loss was a reversal from the P389 million net income from the same period in 2019, Shakey's Pizza Asia Ventures told the stock exchange. Overall sales fell 31% as various forms of quarantine shortened store hours and limited the inflow of customers. At the height of the lockdown, 91% of Shakey's store network was shut and started reopening only when quarantines were eased in June, the company said.

The company is banking on the appeal of pizza, its core product, to turn its fortunes around. Pizza is the "quintessential delivery and carry-out product," said Shakey's CEO Vicente Gregorio. 

The company has also invested in out-of-mall stores and partnerships with app-based delivery services. In 2019, before the pandemic, combined delivery and takout accounted for close to 40% of systemwide sales, Shakey's said.

"In addition, our multi-sales channel and multi-store format approach, alongside our industry-leading margins, are giving us the much needed flexibility to weather through this crisis. We are hopeful that the worst is now behind us," Gregorio said.