Max’s Group cranking up franchising business to stoke further expansion

Casual dining operator Max's Group Inc. (MGI) on Wednesday unveiled plans to pivot towards a franchising-led business model to drive expansion and generate higher revenues for the company.

In a press conference in Quezon City after the company’s annual stockholders’ meeting, MGI said it plans to roll out as much as 90 new outlets this year, most of which are under franchise agreements.

“We remain confident of realizing our growth plans as we pivot towards a franchising-led approach to expansion. In the same way, we will continue to chase new opportunities for our loved brands,” MGI president and CEO Robert Trota said.

Out of the 90 outlets, 74 will be located in the Philippines, with the rest located overseas. Fifty-five of the new restaurants will be covered by franchising agreements.

“International is all franchise. No intentions of opening any company-owned stores (overseas),” Trota noted.

“We look forward to maintaining our strong growth momentum while demonstrating our ability to evolve with our customers,” he said.

The company went into franchising in 1998, with its franchise partners now accounting for 31 percent of the store network.

Through a franchising-led expansion, the company intends to minimize costs while generating additional revenue from franchising fees.

“We’re striving to do better than last year. I believe we have the right people in place to bring us to that level,” said Trota.

MGI closed 2017 with a net income of P626.690 million, up from the P561.738 in 2016, largely fueled by a 5-percent increase in same-store sales.

The company’s brand portfolio includes 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.  —VDS, GMA News