Figaro Culinary Group is scaling up its manufacturing subsidiary to bolster its long-term growth strategy, positioning the company to move beyond traditional retail and enter the international export market.

The publicly listed food and beverage operator announced that its wholly-owned unit, Figaro Innovation and Development Inc. (FIDI), has formalized a supplemental agreement with the Philippine Economic Zone Authority (PEZA).

Figaro Culinary said the move reaffirmed FIDI’s status as a registered export enterprise and secured its strategic operations at the Laguna Technopark – Special Economic Zone.

Under the terms of the agreement, FIDI will focus on the manufacturing of various food innovations and specialized products, including the Anghel Kape line, which currently supports the broader Figaro Culinary Group portfolio.

The unit was established to serve as the group’s central innovation hub, allowing the parent firm to scale food production and improve supply chain efficiency as it prepares for a larger domestic and global footprint.

“This agreement supports Figaro Culinary Group’s broader vision of expanding its food platforms beyond retail, strengthening manufacturing, and positioning our brands for future growth,” said Jose Petronio Español, FDI chief financial officer.

The expansion signals a shift for the group, which has traditionally been known for its coffee shop and restaurant chains. By leveraging its PEZA-registered status, the company said it can access fiscal incentives and streamlined regulatory processes that are essential for large-scale toll manufacturing.

FIDI is currently tasked with the production of coffee mixes and other food products, aiming to align its quality standards with international requirements to meet the rigorous demands of foreign markets.

PEZA Director General Tereso O. Panga noted that the growth of companies like FIDI is critical for driving innovation and inclusive growth within the country’s economic zones. By centralizing its manufacturing in a specialized zone, Figaro aims to reduce production overhead while developing new food formats that can be distributed through both its own retail outlets and external third-party channels.

The long-term strategy involves transitioning from a domestic-heavy retail model to a diversified food manufacturing entity. This shift is expected to provide the group with a more resilient revenue stream, particularly as it looks to mitigate the risks associated with the competitive local restaurant landscape by focusing on high-volume production and export-quality goods.