Goldilocks allots P500M for expansion program

Encouraged by continued strong demand for its products, Goldilocks Bakeshop Inc. is spending about P500 million this year for the establishment of as many as 23 branches in the Philippines and the United States and a commissary in the East Coast.

At the same time, Goldilocks is considering expanding in Singapore, Hong Kong and Thailand in the next two years to further boost its cash flow and tap the growing overseas Filipino workers (OFWs) in those areas.

Goldilocks corporate communications officer Arle De Los Santos said the bakeshop is putting up 15 to 20 new outlets locally and another two or three branches in the US this year.

Goldilocks is the country’s largest bakeshop with a total of 191 outletss across the Philippines, 160 in Luzon, 21 in the Visayas and 10 in Mindanao. Overseas Goldilocks has 17 branches in the US and one in Canada. The cost of an outlet may vary from P7 million to P20 million, De los Santos said.

De Los Santos said the new commissary is intended to address the demands of costumers in the East Coast.

Last year, Goldilocks registered sales of $30 million in the US and Canada. Its aggressive franchising program in 1991 helped it jumpstart its expansion. It offers various kinds cakes and pastries like ensaymada, chicken pie, meringue tart, cinnamon roll, brownies and jellyroll.

Amid the strong interest expressed by several groups for its possible acquisition, Goldilocks said it is keeping its business and is even expanding it to satisfy the ever-changing needs and tastes of the consuming public.

The Lorenzo family’s Pancake House Inc. earlier signified its intention to acquire Goldilocks given the latter’s strong track record and impressive growth through the years.

Goldilocks said that should the company decide later on to enter into a strategic partnership, it would send the word out to prospective investors.

Pancake House has held exploratory talks with the owners of Goldilocks since 2002 but no agreement has been reached between the two parties.

Goldilocks’ closest rival Red Ribbon, which has 147 branches nationwide and 16 stores in the US has been acquired by Jollibee Foods Corp.

Other key players in the bakeshop business include Merced Bakeshop, French Baker, Fortune Bakeship, Sugarhouse Inc., Rolling Pin, Gardenia Phils., Delifrance and Julie’s Bakeshop.