MANILA, Philippines — Businessman Lester Yu is open to adding more brands to the expansive portfolio of his listed food and beverage kiosk operator Fruitas Holdings Inc., with the group setting aside a bigger capital expenditures budget this year to support its expansion initiatives.
Yu told The STAR that Fruitas is allotting about P750 million in capital expenditures this year, higher than last year’s reported allocation of P500 million.
He said the budget would be used primarily for store expansion, commissary expansion and acquisition.
For this year, Yu said Fruitas is looking at an additional 50 stores across its brands.
“We intend to open more stores as opportunity arises,” he said.
Fruitas ended the first quarter with a store network of 825 across its diverse portfolio.
In terms of acquisitions, Yu said Fruitas is always open to talks with brands that would fit or synergize with the group’s existing brands and infrastructure.
Fruitas completed the purchase of 73-year-old legacy brand Ling Nam in March last year, marking its entry into the Asian casual dining space.
Its subsidiary Balai ni Fruitas Inc., meanwhile, acquired the 40-year-old legacy brand Sugarhouse last April, allowing the listed bakery operator to expand its product offerings, particularly in the cake category and tap a broader customer base.
Fruitas has established itself as a leader in food and beverage stores across multiple formats, expanding its production capacity and complete several transformational acquisitions.
The company operates over 30 brands in its portfolio, which includes well-loved food concepts Fruitas Fresh from Babot’s Farm, Buko Loco, Balai Pandesal, Buko ni Fruitas, De Original Jamaican Pattie, Johnn Lemon, Juice Avenue, Black Pearl, Friends Fries, Sabroso Lechon, Ling Nam and Fly Kitchen.
Last April, the company completed its maiden private placement, raising P200 million from the issuance of corporate notes.
The proceeds were allocated for working capital requirements and general corporate purposes.
Aside from store expansion, the group is also tapping into the growing demand for online food delivery services through its proprietary online platform, BalaiMart, and partnerships with third-party food delivery aggregators.
Fruitas said the digital expansion not only diversifies revenue streams but also positions the company to cater to the evolving consumer preferences for convenience and quick service.