Teriyaki Boy is the second restaurant acquired by Pancake House. It currently has 10 branches.
Pancake House sealed an agreement last week with Teriyaki Boy Inc. and Tonka Teriyaki Inc. for the acquisition of a 70-percent stake in the Japanese restaurant chain.
The company will issue five-year convertible notes worth $4 million to finance its acquisition of the Teriyaki Boy business. The notes will be issued to Aureos Southeast Asia Fund LLC, Planters Bank Venture Capital Corp. for SMEs, Pancake House Holdings Inc., and Pancake House chairman Martin Lorenzo.
The notes are convertible to 49.159 million common shares, representing 20.7 percent of the enlarged capital of Pancake House. The conversion price is P4.56 per common share, assuming a foreign exchange rate of P56 to $1 on the issue date, Pancake House said in a disclosure to the stock exchange.
Pancake House has formed Teriyaki Boy Group Inc. to manage, operate and control the Japanese restaurant chain’s nine company-owned stores, commissary and head office facilities.
Lorenzo said he is very excited about the Teriyaki Boy venture, which represents yet another step in the group’s commitment to develop home-grown brands with high market recall.
The "Teriyaki Boy" brand, being synonymous with quality food, fast and efficient service, and great dining experience, will address the changing dining behavior of the market, he said
"We’ve observed among consumers a growing preference for higher quality restaurants," Lorenzo said, adding that dining habits of Filipinos are shifting from fastfood to casual dining outlets.
"People want not only value for their money but also a delightful dining experience. Teriyaki Boy, just like Pancake House and Dencio’s, will be geared up to serve the discriminating customers in the fast growing casual dining industry," Lorenzo said.
Teriyaki Boy already enjoys an edge as the country’s leading fast-casual Japanese restaurant offering reasonably priced traditional Japanese meals.
Banking on the strong performance of its grill restaurant Dencio’s, the Pancake House group expects its net income to grow by 40 to 50 percentthis year from P18.66 million in 2004.
Pancake House has traditionally been associated with specialty pancakes and waffles but has likewise expanded to offer an array of popular international dishes such as spaghetti, tacos, and chicken.
The group also plans to invade overseas markets to further widen its reach and boost its cashflow. It intends to open branches in Malaysia, Thailand, Singapore, China and South Korea.
It has received queries from interested parties and that initial discussions have been made to enter into joint ventures to establish the food chain in the said countries.