Tag: Max’s Group Inc.

Max’s maps expansion as mid-income class grows

Report by Denise A. Valdez
Published online by the Business World, November 4, 2019

THE growing middle income class in the Philippines has made it the perfect time for Max’s Group, Inc. (MGI) to expand, and the company is putting all hands on the table to prepare for boodle fight.

The listed operator of casual dining restaurants said the increasing number of middle income earners is encouraging it to take a bigger chunk of the market through franchising.

“If you look at the consumer trends, it’s looking very optimistic. Data shows there’s an increasing middle income class. That alone is very attractive as a business,” MGI Chief Operating Officer (COO) Pyrus A. dela Cruz said in an interview last week.

“We’ve been targeting them (for years), and they’re the ones growing, so that becomes a bigger opportunity for us,” he added.

MGI, which handles brands such as Max’s Restaurant, Pancake House, Yellow Cab Pizza and Krispy Kreme, is targeting to have more franchises than company-owned stores across the country by 2020.

“We’re moving towards a 60-40 ratio, meaning 60% will be franchise and 40% will be company-owned,” John S. Amante, MGI COO handling Pancake House, said last week. MGI is looking to end the year with a 55-45 ratio for franchise to company-owned stores by the end of the year.

“It will be very hard to expand company-owned (stores) outside our homebase which is Metro Manila. I think local knowledge, especially in Visayas and Mindanao, will help us further develop the brands,” Mr. Amante added.

As of 2018, MGI has 695 stores across 10 brands, of which 411 are company-owned, 219 are franchises, six are joint ventures and 59 are international.

The 10 brands are Max’s Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Teriyaki Boy, Dencio’s, Sizzlin’ Steak, Jamba Juice, Kabisera and Maple. MGI also owns Max’s Corner Bakery, which are attached to Max’s Restaurant branches.

Aside from expanding its geographic footprint, the company is also seeking to tap newer markets consumer-wise. Mr. Dela Cruz, who handles Yellow Cab Pizza and Krispy Kreme, said there is an active effort for the company to mainstream its products.

Among the strategies it is exploring is offering items for single customers at more affordable prices. For example, Yellow Cab has started offering pizza slices from only full-size pizzas previously. Max’s Restaurant also now offers rice bowls of its best-sellers that used to be only for sharing.

“It’s our way of giving our consumers a taste of our brands without actually breaking the bank, and at the same time, their first entry and experience to our respective brands,” Mr. Dela Cruz said. “It’s not just an expansion as far as landscape is concerned. It’s also an expansion as far as target consumers are concerned.”

Paolo S. Serrano, MGI COO handling Max’s Restaurant, also noted how the digitalization of its operations helps the company craft its next move. He said the data they gather is able to help them analyze consumers, and from there come up with offers. “And it’s very mainstream already moving forward,” he said.

The company is targeting to open more multi-brand stores next year, which will feature various MGI restaurants under one roof. Mr. Serrano said having all these brands within its portfolio gives the company confidence in staying relevant despite the entry of several foreign restaurants. The group’s pool of menus of various cuisines helps it find consumers for every product, making multi-brand stores interesting for all types of market.

For this effort, Mr. Dela Cruz said it is helpful that the different COOs for different brands are able to come together to synergize operations. Externally this is seen through multi-brand stories, but internally this means a stronger backend support for its supply chain.

He also said having independent teams running the brands helps allow different ideas to flourish. “It gives us confidence even more as we move forward to the next year and the years forward, because coming from different backgrounds, we give each other different points of view on what we can do better,” Mr. Dela Cruz said.

With a loaded team paving the way for the company to grow, MGI is bracing itself for what Mr. Serrano calls the upscaling of the Filipino amid the turn of the decade.

“From our standpoint, it’s actually the best outlook that we can think of. It’s the perfect storm for us,” Mr. Dela Cruz said.

Earnings of MGI rose 10.4% to P366.45 million in the first semester on the back of improved margins. Its shares inched up 0.04 points or 0.30% on Thursday to close at P13.24 apiece.

This article is originally published by the Business World which can be accessed online at https://www.bworldonline.com/maxs-maps-expansion-as-mid-income-class-grows/

Max’s Group to continue expanding in provinces

BW file photo









MAX’S GROUP, Inc. (MGI) is following the expansion of mall operators in the provinces to further grow its brands, citing the potential to enter untapped markets in the regions.

“There’s a lot of competition in Metro Manila, and there’s a lot of untapped markets in Visayas and Mindanao and wala pa kami dun. That’s why the more we try to drive our business to regions so that they can feel our presence already,” MGI President and Chief Executive Officer Robert F. Trota told reporters at the sidelines of the 25th National Retailers’ Conference in Pasay City last Thursday.

“A lot of the retailers are also going there,” Mr. Trota added, referring to the SM and Ayala groups which have mapped out their expansion to the provinces.

The listed casual dining restaurant operator has scheduled to open 50 more stores before the end of the year, located mostly in Luzon and Visayas, with two in Mindanao.

Overseas, MGI will open around six to eight stores in the Middle East and the United States.

The new stores will carry different brands under MGI such as Max’s Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Teriyaki Boy, and Dencio’s.

MGI has already opened 21 new stores in the first six months of 2018, bringing its total store count to 678 branches by end-June. Of this, 54 are located across several sites in North America, the Middle East, and Asia.

The company committed to spend P500 million in capital expenditures this year, less than half of which has already been used during the first semester.

“Most of it (the store openings) will happen on third and fourth quarter,” Mr. Trota said.

MGI grew its net income by 34% to P208.3 million in the second quarter of 2018, on the back of an 11% increase in systemwide sales to P4.9 billion during the period.

On a six-month basis, MGI’s net income was flat at P332 million, due to rising costs of raw materials. Systemwide sales meanwhile expanded by 12% to P9.3 billion for the January to June period.

The company has been implementing initiatives to have more efficient operations during the last semester through the consolidation of some subsidiaries. Mr. Trota said they have now completed the program.

“We’re done for the year, that’s just part of streamlining our operations, that’s where we get additional savings,” he explained.

-Arra B. Francia

*this article is copied and originally published by BusinessWorld on August 13, 2018 and is also available online at http://www.bworldonline.com/maxs-group-to-continue-expanding-in-provinces/


Max’s Group merges two subsidiaries

By: BusinessWorld Online

MAX’S GROUP, Inc. (MGI) is merging two of its subsidiaries in line with its goal to maximize operational synergies across its businesses.

In a disclosure to the stock exchange on Wednesday, MGI said the Securities and Exchange Commission (SEC) has approved the merger of its wholly owned units, The Real American Doughnut Company, Inc. and Fresh Healthy Juice Boosters, Inc., with the former as the surviving entity.

“The resulting transaction is aligned with on-going reorganization initiatives to maximize operational synergies across the business and does not adversely impact existing shareholders,” the company said.

Last June, the listed casual dining restaurant operator also consolidated operations of its wholly owned subsidiaries Teriyaki Boy Group, Inc. (TBGI) and Yellow Cab Food Corp. TBGI was the surviving firm after the merger, which was also undertaken to improve operational efficiencies within the company.

MGI said it will be ramping up franchising efforts to fast-track its expansion to 1,000 stores until 2020, targeting to get a 65% to 35% mix of franchised versus company-owned stores. The company ended 2017 with a total of 673 stores located in the country, as well as overseas markets North America, the Middle East, and Asia.

It operates stores under various brands, namely Max’s Restaurant, Pancake House, Yellow Cab, Krispy Kreme, Jamba Juice, Teriyaki Boy, Dencio’s, Maple, Meranti, Kabisera, Le Coeur de France, Singkit, and Sizzlin’ Steak.

Shares in MGI closed 32 centavos or 2.49% lower to P12.54 apiece at the stock exchange on Wednesday. — Arra B. Francia


 *this article is copied and originally published by BusinessWorld on August 2, 2018 and is also available online at http://www.bworldonline.com/maxs-group-merges-two-subsidiaries/ 

Max’s Group ’17 profit up 12%

By: – Reporter / @philbizwatcher / 05:35 AM March 17, 2018

The country’s largest casual dining chain operator Max’s Group Inc. (MGI) booked a net income of P626.69 million last year, up by 12 percent as increasing consumer affluence boosted earnings from its expanding restaurant network.

MGI’s system-wide sales rose by 13 percent to P17.34 billion last year, while revenue increased by 11 percent to P12.66 billion, based on a disclosure to the Philippine Stock Exchange yesterday.

Restaurant sales increased by 11 percent to P19.88 billion, driven by sustained same-store sales performance and revenue contribution of new stores.

Same-store sales grew by 5 percent while overall transaction count was up by 13 percent.

Amid rising urbanization trend and consequent worsening of traffic, MGI’s delivery business grew by 27 percent to P1.37 billion, as the group broadened online ordering channels and upgraded delivery infrastructure.

Franchising operations also contributed to the 13 percent rise in commissary sales of P1.42 billion from P1.26 billion.

The group’s brands include Max’s Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Max’s Corner Bakery, Teriyaki Boy, Dencio’s, Meranti, Sizzlin’ Steak, Maple, Kabisera, Le Coeur De France and Singkit.

MGI opened 78 new stores last year, 14 of which are located overseas. These brought the company’s store network to 673 branches, with 55 in various cities in North America, the Middle East and Asia.

The company intends to focus on a franchising-led business model to drive expansion and improve accessibility to customers. With a planned rollout of 80 to 90 new outlets primarily through franchising its core brands, MGI seeks to set an active presence in key geographies, and at the same time, generate higher fee-based contributions to revenue.

Capital spending this year was placed at P600 million.

Pancake House to enter Saudi Arabia

By: – Reporter / @philbizwatcher / / 01:09 AM February 01, 2018

Max’s Group Inc. (MGI), the country’s leading casual dining chain operator, is scaling up its overseas footprint by bringing its Pancake House restaurant brand to the Kingdom of Saudi Arabia.

MGI signed a partnership deal with an Arabian group, Al-Bader National Establishment for Real-Estate Development, to open 12 Pancake House stores in this territory within the next five years.

This deal is MGI’s curtain-raiser for 2018 in terms of overseas expansion initiatives.

Pancake House – one of the brands seen to have a big potential to be accepted by a broader international audience and not just the overseas Filipino community – is a popular homegrown chain that serves pancakes, waffles, tacos, spaghetti and pan-fried chicken.

“Our international business continues to build on its momentum sustained from last year. We are excited with the prospect of entering a familiar territory this time around with another one of our loved brands. We believe the brand’s attributes and offerings will successfully make its way into the mainstream population,” MGI president and chief executive officer (CEO) Robert Trota said in a press statement on Wednesday.

MGI’s local partner, Jeddah-based Al-Bader, is a 17-year-old company which is primarily engaged in real estate trading,property development, commercial operations of shopping malls and furnished apartments. It recently entered the food and beverage business by selectively partnering with reputable global food names. Armed with a strong real estate background, it plans to invest in complementary industries such as food and tourism.

“We are excited to bring Pancake house to Saudi Arabia. We have been searching for a renowned brand to spearhead our venture into the food sector with the intention to deploy a substantial amount of investment. We find the brand’s assorted menu mix and all-day dining concept appealing to various demographic profiles. Moreover, we have experienced the brand ourselves as customers, and are now thrilled to become part of the Max’s Group family. We thank them for entrusting us and look forward to a lasting partnership,” Al- Bader CEO Badr Hamdi Hamed Albalawi said.

As part of its globalization program, MGI plans to open 20 to 30 new overseas outlets for 2018 primarily across core brands Max’s Restaurant, Pancake House and Yellow Cab Pizza. It aims to end the year with around 75 to 80 stores abroad.

Pancake House, for its part, currently operates seven overseas franchised outlets in Malaysia and United Arab Emirates. It plans to add at least two more branches in the United Arab Emirates and open its first store in Qatar this year.


*This story is copied from the article published by the Philippine Daily Inquirer and is available online at http://business.inquirer.net/245114/pancake-house-set-shop-saudi-arabia

MGI’s Sizzlin’ Steak to enter Middle East market

by BusinessWorld, September 19, 2017

MAX’S Group, Inc. (MGI) looks to expand its footprint in the Middle East after entering into an agreement to put up seven Sizzlin’ Steak outlets in the United Arab Emirates (UAE) over the next five years.

The listed casual dining restaurant operator announced on Monday its partnership with Abu Dhabi-based Kasamar Holdings (KH) for establishment of Sizzlin’ Steak branches, the first of which is targeted to open by early 2018.

“We are witnessing the emergence of Sizzlin’ Steak as a global mainstream brand. At the same time, we are pleased with our partnership with Kasamar Holdings to introduce our hot plate concept to the UAE,” MGI President and Chief Executive Officer Robert F. Trota was quoted as saying in a statement.

For his part, KH Director Mo Bississo cited MGI’s reputation in the food and beverage industry in the Philippines as well as the value proposition of the brand as among the reasons for the partnership.

“We genuinely believe in the uniqueness and value proposition offered by Sizzlin’ Steak. We look forward to launching our first shop in the UAE by early next year with the intent to accelerate rollout in the long-term. I am confident the brand will be positively received by the local community due to its mainstream appeal,” Mr. Bississo said in the statement.

KH has core interests in private equity and venture, real estate, and public securities, while also operating one of the largest private health care providers in UAE.

The partnership with KH marks the fourth development contract MGI signed into this year, adding to the pool of over 130 stores set to open in the coming years.

This will be added to MGI’s current portfolio of 655 stores, including 55 franchised outlets located across North America, the Middle East and some parts of Asia.

MGI currently has three brands in the Middle East, namely Max’s Restaurant, Yellow Cab, and Pancake House.

Also under MGI’s brands are Krispy Kreme, Jamba Juice, Max’s Corner Bakery, Teriyaki Boy, Dencio’s, Meranti, Le Coeur De France, Maple, Kabisera, and Singkit.

MGI posted an attributable profit of P154 million in the second quarter of 2017, 18% higher than its earnings in the April to June period in 2017. This follows a 14% uptick in revenues to P3.14 billion for the period.

Including first quarter results, MGI’s year-to-date net income attributable to the parent rose 12% year on year to P329 million, while revenues went up 11% to P6.05 billion.

Shares in MGI climbed 40 centavos or 1.95% to P20.90 each at the stock exchange on Monday. — Arra B. Francia

*This article is first published online on BusinessWorld: http://bworldonline.com/mgis-sizzlin-steak-enter-middle-east-market/

Pepsi-Max’s partnership: 15 years and counting

PEPSI’S partnership with Max’s Restaurant remains strong as top executives of both firms recently sealed the renewal of their tie-up, led by Max’s Chairwoman Sharon Fuentebella, and Max’s President, CEO and Executive Director, Robert Trota, (3rd and 4th from left, respectively), Pepsi Philippines President Samudra Bhattacharya and PepsiCo Country Manager Maricelle Narciso (4th and 3rd from right, respectively). Also in photo are (from left) Max’s Executive Director and Vice-President for Marketing Jim Fuentebella, Max’s Executive Director Carolyn T. Salud, Pepsi Philippines GM for Modern Trade Marvyn Taningco; and PepsiCo Commercial Director Chiqui Palileo.

Aside from Krispy Kreme, the partnership was expanded further with the inclusion of Yellow Cab Pizza. Max’s has over 190 branches while Yellow Cab has 137 outlets nationwide. On the other hand, Pepsi’s growing beverage portfolio offers well-loved drinks like Pepsi, Mountain Dew, and Lipton Ice Tea, among others. “Starting in 2002, Max’s and Pepsi Philippines have worked hard to keep this partnership strong, serving up refreshing goodness that customers have grown to love over the past fifteen years.

We remain as the proud beverage partner of such an iconic company that can perfectly capture the flavors that Filipinos love,” Bhattacharya said. “Starting in 2002, Max’s and Pepsi Philippines have worked hard to keep this partnership strong, serving up refreshing goodness that customers have grown to love over the past fifteen years. We remain as the proud beverage partner of such an iconic company that can perfectly capture the flavors that Filipinos love,” Bhattacharya said.

*This article is copied from Malaya Business Insight and can be found online at http://www.malaya.com.ph/business-news/living/pepsi-max%E2%80%99s-partnership-15-years-and-counting