Company and Marketing Strategy Analysis: Pancake House
After nearly three decades, in January of 2000, the Pancake House chain expands to different parts of Central Luzon. Out of …show more content…
Pancake House Inc. opens its first overseas outlet in Malaysia in 2007 and only a year after, it was able to open its second outlet.
B. Current Revenue, Size, and Profit
Consolidated revenues for the 1st quarter ended March 31, 2010 amounted to P432.7 million, slightly down by 1% down from same period of last year, mainly due to lower restaurant sales amounting to P345 million posted during the current period compared to last year’s P351 million. The decrease in restaurant sales can be attributed to some outlets which have temporarily closed for renovation as well as closure of non-performing outlets. Commissary sales slightly increased by 2% while franchise revenues also increased by 0.4%.
The Company continues to implement its programs such as expanded synergies, resource optimization and strategic purchasing. However, combined restaurant and commissary cost of sales increased from last year’s 35.65% to this year’s 36.15% due to lower restaurant sales in the current period.
Labor cost for the three months ended March 31, 2010 was at 15.6% of sales, slightly higher than last year’s 15.25%.
Consolidated operating expenses for the current period went up to P144 million compared to P138 million in 2009 mainly due to opening of additional outlets.
Consolidated sales and marketing expenses slightly decreased from last year’s P9.9 million to this year’s P9.4 million.