Figaro Coffee Group Inc. remains confident of posting double-digit growth for the year on the back of continued expansion.
Justin Liu, Figaro chairman, said the group more stores are under construction.
“We are still growing our store count,” Liu said.
Figaro last week reported its profit rose 5 percent to P105 million from P100 million, over revenues of P1.3 billion, up by 27 percent in the third quarter of its fiscal year ending June 2024.
Liu said Figaro has allocated “close to P1 billion” as capital spending for the year.
“Angel’s Pizza is enjoying more of the capital because that’s where a lot of the sales and EBITDA (earnings before interest, taxes, depreciation and amortization) and profit (are) coming from and also (because of) the growth potential,” Liu said.
The coffee business under flagship Figaro brand is facing a very competitive industry and given the very low barrier to entry, encourages many new entrants, Liu added.
“Anybody can just open a coffee shop and you’re seeing people shying away from large coffee brands already. They want more of the specialty,” Liu said.
“We’re allocating more of the capital to where the growth is. That’s why we’re also open to creating new brands like Koobideh (Kebabs),” he said.
Figaro opened Koobideh Kebabs in Makati last year, serving beef and chicken kebabs and other Middle Eastern side items.
Liu said the expansion of Angel’s Pizza in the provinces could become a base for future expansion of the other brands.
“Angel’s will also need commissary facilities, warehouse, and these can be used also for the future expansion of the other brands,” Liu said.
Other Figaro brands are Tien Ma’s Taiwanese Cuisine and Cafe Portofino.
Figaro closed 2023 with a total of 203 stores – 124 Angel’s Pizza, 64 Figaro Coffee, 10 Tien Ma’s Taiwanese Cuisine, four Cafe Portofino stores and one Koobideh Kebabs.
Figaro eyes to have a 400-store network in five years.
