Max’s on track to meet 2019 targets
Credit to Author: Tyrone Jasper C. Piad| Date: Thu, 19 Dec 2019 16:33:53 +0000
CASUAL dining firm Max’s Group Inc. (MGI) is on track to meet its 2019 net income and revenue targets amid bullish performance.
“We’re on track. We are happy with how the stores are performing. The network is growing,” MGI Chief Executive Officer Robert Trota told reporters on the sidelines of its first multi-brand site opening on Thursday in Quezon City.
This, as Max’s Group expects a surge in sales due to increased spending amid the Christmas season, he added.
Trota, however, did not share the target figures for this year.
The MGI chief said that the restaurant was expecting to continue the trajectory until next year, growing by “low double-digit” figures, with the Max’s Restaurant brand seen driving bulk or 40 percent of the sales.
As of end-September, the Max’s Restaurant operator saw its net income improve by 9.8 percent to P494.77 billion from P450.56 million the previous year on the back of strong sales growth. System-wide sales rose by 5.7 percent to P14.55 billion while restaurant sales inched up 3 percent to P8.53 billion.
The multi-brand site, located along Main Avenue in Quezon City, houses five MGI brands:
Max’s Restaurant, Yellow Cab, Pancake House, Krispy Kreme, Jamba Juice and Teriyaki Boy.
Trota said that this store model is allowing the firm to save up to 40 percent in cost to build and 3 to 5 percent in labor expenses as all the brands are sharing “one roof” and operating with one kitchen.
With this set up, he said that utilities would also be used more efficiently, in addition to potential cost-saving due to solar panel installation.
“We foresee massive commercial gain due to increased efficiencies and synergies.
Ultimately, this convergent hub will accelerate both our operational and brand leadership in a highly competitive, fast-paced local food industry,” MGI Chief Operating Officer Ariel Fermin said.
MGI is eyeing to open two to three stand-alone multi-brand sites next year in Metro Manila first. But Trota said that this could potentially be put up in the provinces as well.
As of end-September, MGI has 750 stores located across the country, 43 percent of which are franchised.
Trota said that the food group is eyeing a 60:40 sharing of company-owned and franchised stores, respectively, in the next three years.
Max’s shares were up 10 centavos or 0.83 percent to close at P12.10 apiece on Thursday.