4P's Profit Over The Years
By Bao Yen & Nhat Thi
By Bao Yen & Nhat Thi
In 2011, a Japanese couple opened their first pizza restaurant, 4P's, with a capital of $100,000. And now the company has grown to operate a chain of 23 Pizza 4P’s full-service restaurants, 02 food trucks, and 02 franchised Ippudo ramen restaurants targeting upper-middle-income customers.
Firstly, the firm became better thanks to funding from Mekong Enterprise Fund III managed by Mekong Capital with a fund size up to USD112.5 million. The challenge for Mekong Capital was translating this vision into operational measures that would enable the company to grow its platform.
Furthermore, acccording to information of the Hanoi Stock Exchange that has just announced about the individual bond issuance batch of Pizza 4P's system, the company has just completed a capital call of 21 billion VND from institutional and individual investors with interest rate of 11%/year, term of 2 years.
4P's corportion initial plan planned to issue 50 billion bonds, of which 30 billion will be used to build a cheese factory and food processing (Total investment is 75 billion VND, of which bank loans account for 60%), the remaining 20 billion to expand 3 more restaurants.
However, by August 2021, the company has received more than 70 billion in loans from our partners and therefore has actively adjusted our plan to raise capital from bonds.
Profit earned after 10 years
Thanks to the right policies, after 10 years since its inception, Pizza 4P's has continuously grown and is now one of the largest pizza brands in Vietnam, comparable to other giants such as Pizza Hut or Domino's pizza.
Specifically, the company's revenue in 2016 was 158 billion VND. 2017 was impressive when revenue increased by 79%, reaching 283 billion VND, in 2018 it broke through to 411 billion VND. Profits also had breakthroughs, when from VND 6 billion in 2016 increased nearly 9 times to VND 52 billion in just 2 years (2016-2018).
Since the covid-19 outbreak until now, there have been many effects on market demand, production, direct sales, and so on, customer behavior, in particular, has shifted too. Instead of spending liberally like they did before, people are now more cautious in purchasing and selling. Moreover, social distancing also makes direct sales impossible. Therefore, corporations and small businesses in the F&B industry have made many modifications in their business operations in order to adapt to the pandemic. In particular, 4P’s is a chain of restaurant that has significantly changed the way it operates to survive through the pandemic.
Pizza 4P's restaurant space
At 4P's, we don't just sell pizza, we sell the unique cultural experience of visiting a restaurant, enjoying delicious food in a beautiful, calm setting and watching pizza artisans perform passionately. This is the reason why we has always refused to online delivery in order to preserve the unique experience of dining at the restaurant. However, in the face of many risks of economic crisis, Pizza 4P's finally had to modify its business model, abandoning the principle of serving only at the restaurant for the past 9 years to launch an online sales channel, home delivery to adapt to reality.
Ordering website interface built by Pizza 4P's team
Even so, rather of switching to apps like Grab, Gojek or Now, Pizza 4P's built a sales channel through our own website and even created batteries in thermal boxes to preserve food. More importantly, this way of creating our website has significantly reduced delivery times and thanks to that, Pizza 4P's is entirely proactive in delivering as well as in receiving feedback. During the first epidemic, Pizza 4P's recorded a revenue of VND 30 billion, delivered over 60,000 orders, and increased monthly by managing its own online sales system.
2020 in review
In 2020, Pizza 4P's officially launches out first service company, three new Pizza 4P's restaurants, a new brand called 'Beer for Peace' and new retail products. However, Covid-19 has had a significant impact on the restaurant's operations, customer numbers as well as the growth of Pizza 4P's.
4P's delivery
At the end of July 2021, amid the serious development of the Covid-19 pandemic, 4P's opened more genuine stores on Shopee and Lazada. This continues to be a move that shows that this brand is also looking for methods to help revenue while the entire F&B industry is in hibernation. In a short period of time, the frozen pizzas provided by Pizza 4P's have created a trend, recording sales of 200-300 pieces of each type, not to mention a slew of products that are collected and sold on the online market.
Moreover, as a means of saving cost, the chain has had to cut its sustainability budget. We began by evaluating our energy consumption, which we had not done in detail before. From the beginning of the pandemic, 4P’s has held an energy-saving competition amongst all the stores. This obviously saves money; in addition, it decreases pollutants emitted into the environment and contributes to reducing the greenhouse effect.
According to Pizza 4P's, the company will strive to raise the restaurant's sustainability level in the coming years. Thereby showing the thoughtful preparation in the transportation and distribution network coming from this business, creating a transformation even during a severe time of pandemic. This is a positive prospect for Pizza 4P's, as it prepares for new ideas to catch up with the resurgence of the whole retail market and consumers.