Max's Group to open 200 overseas stores by 2020
MANILA, Philippines (UPDATED) – Max's Group, Inc. (MGI) is looking to open at least 200 international outlets by 2020 across all its brands.
The group plans to open 70-80 stores in 2016 in line with its target to have 1,000 stores by 2020, it said Wednesday, November 11.
MGI chief finance officer Dave Fuentabella said in a press briefing Wednesday that out of the planned store openings for 2016, 60-65 stores will be in the Philippines while 15-20 stores are overseas.
“We're still finalizing the mix, like how many will be franchise-owned and how many will be company-owned stores. But that is that is the initial plan based on our current perspective,” Fuentabella said.
MGI is on track to hit 600 stores by end-2015 despite unforseen delays in store openings. It also plans to open 57 stores in the last quarter of the year. From July to September, the company opened 15 restaurants both locally and overseas.
“We're looking to add around 50-60 new stores by December with full-year revenue potential expected to be realized in 2016,” MGI president and CEO Robert F. Trota said.
MGI's brands include Max’s Restaurant, Max’s Corner Bakery, Krispy Kreme, Jamba Juice, Pancake House, Yellow Cab, Le Coeur De France, Dencio’s, Teriyaki Boy, Singkit, Sizzling Pepper Steak, Kabisera, the Chicken Rice Shop, and Maple.
Aggresive expansion plans
The group is taking its aggressive expansion plans further abroad this year, as it celebrates the 70th anniversary of its flagship brand, Max’s Restaurant.
Max’s Restaurant is already operating in several cities in the US, Canada, and the United Arab Emirates (UAE). To date, MGI is strengthening its presence in Gulf Cooperation Council (GCC) countries, particularly the Middle East.
MGI, in partnership with Foodmark, a Landmark Group subsidiary and official franchisee
partner in GCC countries, brought the “Sarap to the Bones” experience to Al Saad, Qatar, by opening the first Max’s Restaurant there on September 22.
The opening of the Al Saad branch brings Max’s Restaurant’s store network in GCC to 6
(5 stores in the UAE, 1 in Qatar).
Encouraged by the store’s grand opening sales of over $20,000, Foodmark is plans to open one more store each in the UAE and Qatar this year, as well as a couple more in Kuwait and Saudi Arabia in 2016.
MGI also recently signed development agreements to bring two more of its brands to the UAE.
Tablez Food Company LLC, the food and beverage division of the diversified LuLu Group, plans to build at least 8 Pancake House stores in the UAE within the next 5 years. (READ: Pancake House to open in United Arab Emirates)
Yellow Cab Pizza will also be opening its doors soon in the UAE as MGI’s Middle East-based partner Cartoon Fashion Group, aims to build 10 stores within the next 5 years.
Trota said in October that the group is pleased with the opportunity to further broaden its reach in UAE.
He added that the group is also encouraged that Max's Group's international campaign has received strong interest from a number of potential foreign partners.
"This can be attributed to the strength of our diverse portfolio of brands catering to various markets and tastes, anchored on a solid and well-organized Max's Group's support system,” he added.
The company also reported Wednesday that it booked a net income of P313.12 million ($6.65 million) for the first 9 months of 2015, a turnaround from a loss of P31.36 million ($665,681.94) for the same period last year.
As of end-September, MGI’s consolidated revenues rose 170% to P7.3 billion ($154.92 million) versus reported figures for the same period last year.
Store sales, which comprised bulk of revenues, grew 6% to P6.2 billion ($131.58 million) from P5.87 billion ($124.58 million) for the first 9 months of 2014.
Franchise income went up 41% to P287 million ($6.09 million) as of September 2015 from P204.13 million ($4.33 million) versus the same period last year.
Commissary sales also rose 3% to P813.59 million ($17.27 million) year-on-year.
“The results are reflective of the historical seasonality effect during this time of the year. Nevertheless, we are poised to generate momentum ushering into the Christmas period,” Trota said. – Rappler.com
$1 = P47.12