Shakey’s Going Into Milk Tea Business With Singapore’s R&B Brand
Shakey’s Philippines has acquired the master franchise of Singapore’s R&B milk tea brand and will bring it to the Philippines.
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R&B is one of the leading milk tea and bubble tea players in Singapore. It currently has more than 1,000 outlets worldwide, in countries like China, US, Singapore, Cambodia, Vietnam, Malaysia and Indonesia.
Shakey’s Pizza Asia Ventures Inc. entered into a master franchise agreement with Koufu Group Ltd, a publicly listed company and is one of the largest operators and managers of food courts and coffee shops in Singapore.
In a disclosure to the Philippine Stock Exchange, Shakey's said it was awarded territorial rights to sell R&B milk tea, bubble tea, and other specialty tea drinks in the Philippines, through stand-alone store formats and co-branding in select Shakey’s and Peri-Peri Charcoal Chicken outlets.
“The co-branding strategy will allow the company to leverage on its store network throughout the Philippines, and its strong delivery presence thanks to an already established in-house delivery infrastructure,” the company said.
According to Shakey’s, the Philippines has a growing milk tea and bubble tea market, with approximately 45 million Filipinos falling within the age group of between 15 to 39 years old, which is the typical market for the product. Studies have also shown that milk tea is one of the top-selling products for take-out and delivery.
“We are pleased to bring the R&B milk tea experience to the Philippines, and we look forward to WOW-ing our guests with the brand’s premium quality milk tea and bubble tea offerings,” Vicente Gregorio, Shakey’s president and CEO said. “This co-branding initiative is likewise in line with our renewed focus on out-of-store consumption, enhancing sales thru these channels with minimal additional investment and maximizing the use of our existing assets.
“Though we remain in unusual times and continue to prioritize cash and liquidity as we navigate thru the crisis, we are also working on a number of strategic initiatives, including this one, rolling out a variety of new and exciting innovations for our guests,” Gregorio added.
“We are excited to bring our high growth tea beverage concept brands to a new market, the Philippines, with Manila as our initial landing point,” said Pang Lim, Koufu’s Executive Chairman and CEO. “We have carefully considered the market trends and found the conditions in the Philippines to be favourable, where there has been a growing receptiveness towards the bubble tea culture in recent years. We are confident that the locals will enjoy our R&B beverages, as do our customers in other markets.”
Since the start of the pandemic, Shakey’s has launched a number of new offerings, including a vegetarian pizza for the more health-conscious consumer, ghost kitchens, al-fresco dining, park-n-order, and Peri co-branded locations. It is also looking to opportunistically expand its smaller store formats, including ghost kitchens and delivery hubs.
Shakey’s is the Philippines’ largest casual dining restaurant brand and the leading player in full-service pizza chain. It has built an established track record of building and operating stores throughout its 45-year history.
In June 2019, the company acquired the Peri-Peri Charcoal Chicken (Peri) brand, an emerging fast casual and full-service restaurant known for charcoal-grilled chicken served with an assortment of unique sauces.