Pancake House expands to Mid-East mart

MANILA, Philippines - Lorenzo-led casual dining chain Pancake House is expanding further into the rapidly-growing Middle Eastern market with the launch of its core restaurant brand and the addition of new branches for newly-acquired Yellow Cab pizza chain.

Pancake House chairman Martin P. Lorenzo said the group intends to build five Yellow Cab stores a year in the Gulf States, which include Bahrain, Qatar, Saudi Arabia and the United Arab Emirates to capitalize on the strong demand for Western dishes.

Yellow Cab has 82 stores mostly in Manila. It also has outlets in Malaysia, Qatar, Guam and mainland USA.

Plans also include bringing the group’s flagship brand Pancake House to the Middle East where it believes there is great potential for sustainable financial growth. The group intends to open two or three Pancake House stores in the Middle East this year.

Lorenzo also noted that the group is performing strongly in Malaysia, the first site of its overseas expansion.

Other brands under Pancake House’s basket are Dencio’s, Teriyaki Boy, Sizzlin’ Pepper Steak and Le Coeur de France. It also owns upstart restaurants Kabisera and Chicken Rice.

With the full-year contribution of Yellow Cab, the group’s net earnings are forecast to grow 60 percent by yearend. Systemwide-sales are likewise seen to rise by 47 percent to P4.7 billion on the back of new store openings.

The group acquired Yellow Cab in August 2011 for around P800 million.

To ensure its continued growth, the group is putting up 50 new stores to boost its network to a total of 350 by yearend. It has budgeted P160 million for its capital expenditures this year.