Figaro Coffee Group Inc. is earmarking P1 billion for its capital expenditure program this year to bankroll store expansion as it guns to operate the country’s largest and leading pizza chain.

In an interview, Figaro Chairman Justin Liu announced that the company aims to open around 70 to 80 new stores this year across all brands. This ambitious target is part of a broader strategy to ensure double-digit growth for the company.

“We will still see double-digit growth for 2024 compared to 2023 because we have a lot of stores which are still under construction and we are still growing our store count. It is a challenge on how we innovate our products to still become a value for money and cater to our low to middle-class market,” Liu said. 

While the majority of the new stores will be located in Luzon, Liu said the company will also plan to expand into the Visayas and Mindanao regions.

However, he also acknowledged the challenges presented by the current economic climate, highlighting the impact of high inflation and interest rates on consumer spending.

According to Liu, Angel’s Pizza is envisioned to be the leading pizza chain in the country over the next five years in terms of customer preference and store count.

“It is very difficult to say when, but hopefully within the next five years. It is very challenging because our competitors are larger than us and more capitalized than us. It’s a very competitive market,” Liu said.

Angel's Pizza contributes the most to Figaro's overall revenue and profit margin.

Consequently, Liu announced that most of Figaro's new store openings will be dedicated to expanding the Angel's Pizza brand.

During the first quarter of the year, the company reported a net income of P105 million, 5 percent higher than the numbers in the same period last year as revenues improved by 27 percent to P1.3 billion.

Last year, Figaro booked a net income of P430.4 million, representing an 84 percent surge from 2022 as revenues soared by 55 percent to P5 billion from P3.23 billion.

Figaro wholly owns Figaro Coffee Systems Inc., through which it operates and/or franchises a network of restaurants — including Figaro Coffee, Angel's Pizza, and Tien Ma, among others.