Max's Group Launches First-Ever All-You-Can Wednesdays

Max’s Group, Inc., the country’s largest casual dining restaurant group, treats its customers to a delightful feast with the first-ever All-You-Can Wednesdays cross-branded nationwide promo! For all Wednesdays of June, eight (8) of the Group’s brands come together to offer a selection of its best-selling products at only Php 349 per brand. This game-changing promotion leverages on the Group’s portfolio and store network to create synergies that will delight its customers.

MGI’s first-ever All-You-Can sets things moving for a remarkable synergy of brands that have captured the hearts of Filipinos for generations. With hundreds of participating branches nationwide, Max’s Group’s All-You-Can Wednesdays brings its brands even closer to the consumers, serving Filipino families with MGI favorites that have become synonymous to home.

All-You-Can Offers

The Max’s Group All-You-Can Wednesdays promo will be available nationwide in over 600 participating stores on June 6, 13, 20, and 27, 2018 across eight of its brands from 2PM to closing. Yellow Cab’s All-You-Can Pizza offer will begin at 12MN in its 24-hour stores, and for the duration of its opening hours in other stores.

For only Php 349 per brand, customers can choose from Max’s All-You-Can Fried Chicken with 1 glass of Sago’t Gulaman; Yellow Cab’s All-You-Can Pizza in Hawaiian or #4 Cheese and Mountain Dew with 1 order of regular Salt & Pepper Hustlers; Pancake House’s All-You-Can Best Taco in Town and Iced Tea; Krispy Kreme’s All-You-Can Original Glazed® Doughnut and Signature Coffee; Dencio’s All-You-Can Krispy Sisig (Regular) and Iced Tea; Teriyaki Boy’s All-You-Can Ebi Tempura and Iced Tea with 1 cup of Steamed Gohan; Sizzlin’ Steak’s All-You-Can Beef Belly Strips and Iced Tea with 1 cup of Plain Rice; or Jamba Juice’s All-You-Can Banana Berry Smoothie with 1 Reusable Metal Straw.

All-You-Can Bundles

Special packages starting at Php 849 are also available for families and barkadas so they can enjoy more delightful moments together in Max’s Group brands. Get Max’s 3 sets of All-You-Can Fried Chicken with 1 glass of Sago’t Gulaman + a free Plush Toy for only Php 1,249; Yellow Cab’s 2 sets of All-You-Can Pizza in Hawaiian or #4 Cheese and Mountain Dew + 1 full order of Chicken Alfredo Pasta for only Php 849; Pancake House’s 3 sets of All-You-Can Best Taco in Town and Iced Tea + 1 order of Spaghetti with Meat Sauce (Large) for only Php 1,199; Krispy Kreme’s 3+1 All-You-Can Original Glazed® Doughnut and Signature Coffee for only Php 999; Dencio’s 3 sets of All-You-Can Krispy Sisig (Regular) and Iced Tea + 1 order of Hot & Spicy Tofulutan for only Php 1,099; Teriyaki Boy’s 3 sets of All-You-Can Ebi Tempura and Iced Tea with 1 cup of Steamed Gohan for only Php 999; Sizzlin’ Steak’s 3 sets of All-You-Can Beef Belly Strips and Iced Tea with 1 cup of Plain Rice + 1 order of Cheese Dip with Nachos for only Php 999; or Jamba Juice’s 3 sets of All-You-Can Banana Berry Smoothie with 1 Reusable Metal Straw for only Php 999.

As an added treat, all customers who avail of the All-You-Can offer will receive Delivery Treat Vouchers so they can enjoy more of MGI brands’ signature dishes. For Max’s, get a free Sizzling Tofu with a minimum delivery order of Php 1,500. For Yellow Cab, enjoy a free Ice Cream for every order of Squad Stuff, Boom Bundles, or Hustle Bundles. Pancake House offers free 2-piece Classic Pancakes with a minimum delivery order of Php 800. For Krispy Kreme, get a free Box of 3 Original Glazed® Doughnuts with a minimum delivery order of Php 1,000. Dencio’s offers free Lumpiang Shanghai with a minimum delivery order of Php 1,500. Get Teriyaki Boy’s 8-piece California Roll for free for every order of Kazoku Set Meal and for Sizzlin’ Steak, enjoy a free Cheese Dip with Nachos for every order of Platter of 3.

Upon entry at the branch of their chosen MGI brand, customers will be provided stickers for identification and will have 2 hours to eat as much of the featured product as they can. In the purchase of goods with promotional discount, the Senior Citizen or PWD may choose to avail either the promotional discount or the 20% discount provided under the expanded Senior Citizens Act of 2010, whichever is higher. Price is inclusive of VAT. Senior Citizens and Persons with Disability may claim VAT exemption upon presentation of valid IDs.

“Max’s Group’s very first All-You-Can promo is the result of a momentous synergy among MGI’s well-loved brands—all of which have become deeply ingrained in the lives of Filipinos,” Ariel Fermin, Group COO for Max’s Group, Inc. said. “With our customers at the heart of this collaboration, Max’s Group aims to continue to delight and satisfy their needsby pursuing innovations and initiatives that redefine the way Filipinos enjoy MGI brands.”

Be part of Max’s Group’s All-You-Can Wednesdays! Head on to participating branches of Max’s Restaurant, Pancake House, Dencio’s Teriyaki Boy, Sizzlin’ Steak, Yellow Cab, Krispy Kreme and Jamba Juice on June 6, 13, 20, and 27, 2018 and fill up with MGI’s delicious, refreshing, and delightful All-You-Can offers.

Terms and conditions apply. For more information, please visit Max’s Group’s All-You-Can-Wednesdays Facebook Event Page at http://bit.ly/MaxsGroupAYCWednesdays.

Max’s Group Builds Partnerships that Fuel Growth

Since Max’s Group, Inc. (MGI) opened its flagship brand, Max’s Restaurant, for franchising in 1998, it has remained to be an attractive business model for the company, and a rewarding brand for its partners.

In 2017 alone, a total of 40 franchise agreements were awarded across its brands. 15 of these were cross-franchise deals, which meant that existing partners of the company have decided to expand their business by opening at least one more store of another brand from the group. Another 14 were with current franchisees who have signed up to add more branches of the existing brands they manage. 11 were new partners have come onboard to start their own franchise businesses.

The group’s appeal as a franchisor speaks volumes about its credibility, relevance, and expertise. As the franchising industry continues to be in an upward trend with an estimated growth of 30% in 2018 according to a recent interview with the Philippine Franchise Association (PFA), food outlets will continue to be the most popular franchise type. MGI is poised to capitalize on this movement to drive expansion and improve accessibility to customers.

MGI’s mission of building loved brands is one that is echoed by its partners. In fact, it was brand love that made Atty. Diane Garcia decide to sign with the brand. “Our family wanted to venture into the food industry but we knew nothing about that business so we just decided to get a franchise. At least with that model, everything is already set up and we can leverage on the franchisor’s expertise,” recalls Atty. Garcia.

She adds, “Our first franchised brand was Max’s Restaurant, way back in 1998. We were one of the first five franchisees of the brand, and we decided to go for it because it is a household name. Everybody knows Max’s, The House That Fried Chicken Built. It has a strong recall across demographics.”

This brand love was also demonstrated by the way the company operates its business. Its responsive and quality products, compelling marketing campaigns, regular training programs, and ongoing support services ensure that the partnership will flourish and benefit both parties. An alignment on values is crucial as well to secure success.

“I am very satisfied with the company‘s culture when it comes to all aspects of the brand. They are able to address all that is necessary for a company to succeed. Product safety is a priority for them. While it does require a higher initial investment, it pays for itself in the end because customers are delighted and they do come back. They also value their employees by providing a good working environment and opportunities for career development. These are just some of the things that we believe in and something we practice in our own company as well,” shares Atty. Garcia.

20 years after the Garcias first signed with MGI, they are now one of the group’s biggest partners with a total of 12 stores running – three Max’s Restaurant branches in Luzon and one in Vancouver, and five Pancake House stores in the Greater Manila Area – and three more slated to open this year.

“Two decades into the partnership and we're still very happy with our decision to franchise with them all those years ago. Like any commercial venture, we experience the usual business bumps and trials so it’s not always perfect but it’s always resolved. That’s what matters. Our mutually beneficial relationship is built on trust and confidence, and I believe that all partnerships should have a foundation like this," says Atty. Garcia.

MGI notes that its commitment to prioritizing customer satisfaction and upholding the highest standards of product and service quality strengthens its relationships with its franchisees.

“MGI’s strength comes from the trust we build with our franchisees whom we consider as valued partners. We look forward to growing with them and bringing onboard more like-minded entrepreneurs as we realize our vision of building loved brands,” concludes Ariel P. Fermin, MGI Group Chief Operating Officer.

MGI is strategically embarking on a multi-brand franchising model to fuel expansion and ensure an active presence in key geographies. The group plans to roll out 80 to 90 new outlets in 2018 primarily through franchising its core brands. This initiative is expected to accelerate revenue contribution from recurring fee-based income, which generally represent maximized profit flow-through, and will leverage on Max’s Group’s brand equity, operational expertise, and scale to propel store network expansion.

Max's Group to Refocus Efforts to Franchising for Expansion

Max’s Group, Inc. (“MGI” or the “Company), the Philippines’ largest casual dining restaurant group, will be focusing on a franchising-led business model to drive expansion and improve accessibility to customers in 2018. With a planned roll out of 80 to 90 new outlets primarily through franchising its core brands, the move will leverage on Max’s Group’s brand equity, operational expertise, and scale to propel store network expansion. This strategy will ensure an active presence in key geographies, and at the same time, generate higher fee-based contributions to revenue.

Since opening for franchising in 1998, Max’s Group has successfully established itself as home to a number of the country’s brand-name franchisors. The Group’s franchise partners currently operate 31% of the Company’s store network, and the increasing demand for franchising opportunities across its brands speaks to its partners’ confidence in MGI’s operations and market relevance.

“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. We look forward to maintaining our strong growth momentum while demonstrating our ability to evolve with our customers. Our thrust towards bridging heritage and innovation will go on as we steadily reinvent ourselves to cater to a broader market while staying true to our core,” said Robert F. Trota, President and Chief Executive Officer of MGI, during the Company’s Annual Stockholders’ Meeting.

In 2017, the Group’s various brands launched initiatives that sought to refresh how they each engage with their customers, all while staying true to their DNA. MGI’s flagship brand, Max’s Restaurant, launched a purely digital film that was the most talked about brand story in the year as the vehicle to introduce its new product. Pancake House used this same foundation as it developed its marketing and operations programs to redefine how it delivered its brand promise. While relatively a young brand, Yellow Cab Pizza Co. looked to the stories of its customers to create a campaign that would resonate regardless of age or background. Krispy Kreme partnered with other globally loved consumer brands to create new favorites while maintaining the strength of its core.

With these initiatives, the Company ended 2017 with a robust blended same store sales growth of 5%, and a 13% increase in overall transaction count. MGI also reported systemwide sales totaling P17.34 billion, up 13% from P15.34 billion in 2016; topline growth of 10% to P12.63 billion from P11.44 billion; and restaurant sales of P10.43 billion, an 11% increase from P 9.42 billion of the previous year.

The Group’s efforts to broaden online ordering channels and upgrade delivery infrastructure led to a 27% growth in the delivery segment, equivalent to P1.37 billion from P1.08 billion in 2016. In addition, strengthened franchising operations contributed to the 16% increase in commissary sales of P1.46 billion from P1.26 billion. #

Max's Group Releases 2017 Annual Report

Bridging Heritage and Innovation (About the Theme)

Max’s Group, Inc. (MGI) has a portfolio of loved and cherished brands that have delighted Filipinos since 1945. Seven decades later, the Company has grown its network to 673 stores, 618 of which are located in the Philippines, and 55 in various markets overseas.

For most restaurateurs, the challenge is to find the secret formula to staying in business for more than a few years. For a Group carrying heritage brands, the task, however, is to keep reinventing itself to make it appealing to new generations of customers, while ensuring that the values and qualities that have made it successful over the years are kept intact.

Embracing change and adapting products and services to meet the ever-evolving customer needs and desires are exactly the opportunities very much welcomed by the leadership team of MGI. It is this spirit of innovation that drives the various members of the Company to explore new ways to make every customer’s visit to any of its brands the most delightful dining experience possible.

In 2017, the Group’s various brands launched initiatives that sought to refresh how they each engage with their customers, all while staying true to their DNA. MGI’s flagship brand, Max’s Restaurant, launched a purely digital film that was the most talked about brand story in the year as the vehicle to introduce its new product. Pancake House used this same foundation as it developed its marketing and operations programs to redefine how it delivered its brand promise. While relatively a young brand, Yellow Cab Pizza Co. dug deep into the stories of its customers to create a campaign that would resonate regardless of age or background. Krispy Kreme partnered with other globally loved consumer brands to create new favorites while maintaining the strength of its core.

As MGI moves closer to achieving its goal of having 1,000 stores by 2020, the Company intends to strengthen further its brands' equities through constant reinvention and creativity, balanced with a respectful celebration of its history. And with more stories of value, relevance, and delight, Max's Group stands to truly become the Filipino company with the most loved brands.

Download a copy of Max's Group's 2017 Annual Report here: http://bit.ly/MGI2017AnnualReport

Max’s Group reports Full Year 2017 Financial Results

Max’s Group, Inc. (“MGI,” “Group” or the “Company”), the Philippines’ largest casual dining restaurant group, reported today the operating results for the full year of 2017.

“MGI maintained a strong growth momentum in 2017. Our brands ensured their relevance to today’s customers, and were undeterred in retaining their leadership positions in the casual dining segment despite the challenging market conditions encountered. We are excited to gain a stronger foothold in the consumer foodservice industry as we continue to expand our business through a renewed focus on franchising,” said Robert F. Trota, President and Chief Executive Officer of MGI.

The Company reported systemwide sales of P17.34 billion in 2017, up 13% from P15.34 billion in 2016. Topline rose 10% to P12.63 billion from P11.44 billion, and restaurant sales posted a healthy 11% increase of P10.43 billion from P 9.42 billion, driven by sustained same store sales performance and revenue contribution of new stores.

The Group’s delivery business posted a steady growth of 27% to P1.37 billion from P1.08 billion due to efforts to broaden online ordering channels and upgrade delivery infrastructure. A robust blended same store sales growth of 5% and a 13% increase in overall transaction count contributed to and sustained the Group’s market share in 2017. In addition, strengthened franchising operations contributed to the 16% increase in commissary sales of P1.46 billion from P1.26 billion.

MGI also focused on professionalizing the business in 2017, investing in key leadership positions across the organization to drive operational efficiencies moving forward. In addition, the Group institutionalized major automated systems that will be less dependent on manual intervention and will help improve workforce productivity. With these key programs, earnings before interest, taxes, depreciation and amortization (EBITDA) stood at P1.38 billion, translating to a net income of P626.69 million, up 12% compared to P561.74 million for 2016.

MGI opened a total of 78 new stores in 2017, 14 of which are located overseas. This brings the Company’s store network to 673 branches, with 55 across various cities in North America, the Middle East, and Asia.

The Company will be focusing on a franchising-led business model to drive expansion and improve accessibility to customers. With a planned roll out of 80 to 90 new outlets primarily through franchising its core brands, the Company will be able to ensure an active presence in key geographies, and at the same time, generate higher fee-based contributions to revenue.

Capital spending programmed at approximately P600 million will redeploy assets into other strategic initiatives such as a system modernization program to reinforce support services, and the construction and renovation of select flagship stores to improve the customer experience.

“Our strategies revolve around a customer-centric approach to focus on the needs of the market. And with this, we intend to build on MGI’s growth momentum as we create more value for all the stakeholders of our business. We will continue to aggressively pursue growth prospects for our core brands and at the same time, transform our cost structure by streamlining resources and maximizing workforce productivity to improve overall profitability,” ends Ariel P. Fermin, Group Chief Operating Officer. # 

MGI Appoints Group Chief Operating Officer

Max’s Group, Inc. (“MGI”), the country’s largest casual dining chain, has named Mr. Ariel P. Fermin as Group Chief Operating Officer. Ariel will assume responsibility for all aspects of business including strategy development and execution for all brands and support services. He will remain at the forefront of spearheading digital innovative solutions in addition to reinforcing a culture of excellence, accountability and transparency across the group. 

“We recognize the importance of organizing ourselves to effectively address the needs of a rapidly competitive industry. Since joining, Ariel has demonstrated proven leadership capabilities, driving double-digit systemwide sales growth for brands under his watch, while possessing the necessary credentials to lead this transformational move. Through our shared vision, we are confident in his ability to chart our path to sustainable growth,” said Mr. Robert F. Trota, President and Chief Executive Officer of Max’s Group, Inc.

Prior to his new assignment, Ariel served as Chief Innovation Officer and Chief Operating Officer of Max’s Restaurant, Krispy Kreme and Max’s Corner Bakery. Previously, he held management positions for various local and multinational consumer-oriented companies including PLDT, Jollibee Foods, Nike, Coca-Cola, Unilever and Procter and Gamble.

“The consumer remains to be at the center of what we do. We are aggressively pursuing growth opportunities especially with our core brands and will enable go-to-market execution from earlier investments made on human capital, process automations and system upgrades. At the same time, we are consolidating resources for a more robust support structure, equipped with the agility and resiliency to respond to on-going and future market trends. Altogether, our group is in a great position to continue to lead industry growth with optimized productivity and improved profitability,” stated Fermin.

“I welcome the opportunity to lead MGI onto the next stage of its storied and accomplished history. As we work in unison towards unleashing our full potential, I firmly believe we are primed for even greater success. Lastly, I also thank our management team for their trust and unwavering support,” concluded Fermin. #

MGI Leads the E-Payment Revolution in the Philippines using Phone as Wallet

Max’s Group, Inc. (MGI) is leading the local e-payment revolution, being the first multi-brand company to accommodate cashless and cardless transactions with the GCash Scan-to-Pay service.

“We at Max’s Group are proud to announce that our family of restaurants will now be accepting e-payment transactions through GCash. We are always working to improve our customers' dining experience and giving them an option to use their phone as a wallet will definitely be a great convenience. And with the combined resources and capability of Globe, Ayala, and Alipay to power the GCash system, we are truly excited to unlock the opportunities and future of e-payments,” shares Robert F. Trota, MGI President and Chief Executive Officer. 

Max’s Group launches new QSR concept store in UAE and Qatar

Max’s Group, Inc. (“MGI”) is introducing a new concept store in the United Arab Emirates and Qatar that will expand its portfolio to the quick service restaurant (QSR) segment.

MGI will be working with long-standing partner, the Landmark Food Limited (Foodmark), to open 13 Max’s All About Chicken stores in UAE and Qatar in the next five years. The deal was finalized after a successful pilot run of the store concept in Deira City Center, Dubai.

Max’s All About Chicken is inspired by the iconic Max’s Fried Chicken and offers a variety of international chicken flavors such as Tandoori, barbeque, lemongrass, and ranch. Designed to operate in food courts, the Max’s All About Chicken menu features generous portions of its 24-hour marinated and freshly char-grilled chicken, and is offered with a variety of popular sides such as rice, noodles, and bakery items for wide appeal. The iconic Sarap-To-The-Bones Fried Chicken of Max’s will also be made available to its diners.

Dubai’s Ibn Battuta Mall will be the brand’s first full concept store that will feature a vibrant, colorful, and fun aesthetic. The store is set to open in December 2017.

“We are thrilled to launch our new Max’s All About Chicken with Foodmark, our long time partner. This concept puts a spotlight on favorite chicken dishes the world over, and it allows us to pay homage to the well-loved recipe of the Max’s Sarap-To-The-Bones Fried Chicken, while showcasing it alongside other popular international char-grilled chicken flavors that diners of various nationalities enjoy. MGI has always been about building loved brands, and with this new concept, we will be able to offer a variety of fresh and tasty chicken dishes to our guests at an affordable price and in a fast, easy, and convenient location,” shared Robert F. Trota, President and CEO of MGI.

MGI and Foodmark have first signed a development agreement in 2011 and are now operating eight Max’s Restaurants across UAE, Qatar, and Kuwait.

“We are very happy to be working on this new concept with Foodmark. We have forged a strong partnership over last six years and this bold new step for both parties will be strengthening the business even more,” adds Peter King, MGI CEO for International.

Foodmark or Landmark Food Limited is the food and beverage division of Landmark Group, one of the largest and most successful retailers in the MENA region with market leading brands in apparel, furnishings, electronics and leisure.

This signifies the sixth development agreement secured by MGI in 2017. #

Max’s Group reports Nine Months 2017 Financial Results

Max’s Group Inc. (‘MGI’, the ‘Company’) systemwide sales increased 14% to P12.60 billion for the nine months ended 2017 from P11.09 billion for the nine months ended 2016. Topline grew 12% to P9.04 billion from P8.09 billion as of 30 September 2017. Restaurant sales rose 13% to P7.59 billion from P6.72 billion driven by revenue contribution of new stores and healthy same store sales showing. Blended same store sales growth was at 5% for the covered period. Commissary sales went up 5% to P1.02 billion from P971.03 million primarily indicating stable performance of the franchising business. Meanwhile, revenues from new franchises, royalty and continuing license fees gained 8% to P432.72 million compared to P399.87 million for the nine months ended 2016 resulting from higher recurring income and new franchising contracts. Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at P970.80 million leading to a net income of P421.73 million, up 11% versus P380.56 million year-on-year.

“The results underscore our steady growth state notwithstanding the effects of cyclicality, rising input costs and heightened competition. As we channel this momentum into the Christmas season, we are primed for another strong finish to cap off the year,” said Robert F. Trota, President and Chief Executive Officer of Max’s Group, Inc.

As of the third quarter, Max’s Group opened 58 new stores both domestically and abroad bringing its overall network to 660 branches. The Company plans to establish 10-15 additional outlets for the remainder of the year.

On the international front, MGI continues to broaden its footprint in various geographies around the globe. To date, the Company opened 11 new stores to shore up its existing count to 57 outlets scattered throughout North America, Middle East and parts of Asia. It also inked a number of fresh development agreements for a combined 31 future sites across loved brands Max’s Restaurant, Yellow Cab Pizza and Sizzlin’ Steak.

Since 2015, MGI has secured a committed pipeline of 126 stores of which 16 are currently operational. It intends to concentrate efforts on further accelerating store-building activities beginning next year.

“The success of recent store openings has taken franchising interest in our brands to an all-time high particularly in Asia. We also have the necessary structure in place to seize this opportunity. At present, we have deployed regional teams to provide quick and focused support for all our markets,” added Peter H. King, Chief Executive Officer for International.

For the period, MGI encountered challenging industry conditions such as commodity price escalations, increased competitive pressure and wet climate. Nonetheless, the Company capitalized on its operational scale to derive cost advantages, streamlined menu mix and tactical marketing campaigns to cushion price hikes and boost customer frequency.

Max’s Restaurant Set to Open in Washington

Max’s Restaurant, a Filipino household food staple dating 1945, known for its “Sarap to the Bones” fried chicken, has found its way into a new area in the United States of America.

Max’s Group, Inc. (“MGI”) has agreed to terms with JS Restaurant LLC to build the first Max’s Restaurant in Tukwila, Washington by 2018.

“This is another exciting moment for us to provide our countrymen based in the United States a genuine taste of home. We are grateful to be in partnership with JS Restaurant LLC to serve our best-in-class products to the community of Tukwila,” said Max’s Group, Inc. President and Chief Executive Officer, Mr. Robert F. Trota.

This signifies the sixth development agreement secured by MGI for 2017.

“We are witnessing the fastest rate of expansion in North America. For this year alone, we opened three new Max’s Restaurant’s across New Jersey, Calgary and San Diego. Moreover, we have another two stores in the pipeline for 2018 to be located in Winnipeg and Tukwila,” added Max’s Group, Inc. Chief Executive Officer for International, Mr. Peter H. King.

JS Restaurant LLC is a private company engaged in specialized medical services since 2012. Its principals have been residents of Tukwila for close to two decades. During this span, it has successfully forged business networks and alliances which will anchor its initial foray into restaurant operations.

“We are thankful to have been entrusted with a well-loved Filipino brand. We are determined to extend the Max’s Restaurant tradition of excellence in food quality and heartwarming service to our customers in Tukwila," stated Managing Director, Mr. Joselito Santos.

Max’s Restaurant currently operates a total of 175 stores including 27 franchised branches overseas. #

Max’s Restaurant Extends Footprint in Canada

Sizzlin’ Steak Debuts in The Middle East

Sizzlin’ Steak is about to sizzle its way into the Middle East region.

Max’s Group, Inc. (“MGI”) has partnered with Kasamar Holdings to build seven Sizzlin’ Steak outlets in the United Arab Emirates (UAE) over the next five years.

“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,” said Max’s Group, Inc. President and Chief Executive Officer, Mr. Robert F. Trota.

This marks the fourth development contract signed by MGI for the year, adding to an active pipeline of more than 130 stores slated to operationalize in the coming years.

Kasamar Holdings (“KH”) is a family-led enterprise based in Abu Dhabi engaged in three principal investment verticals: private equity and venture, real estate, and public securities. In addition, KH operates one of the largest private healthcare providers in the United Arab Emirates. It likewise has diversified interests in retail and medical equipment distribution. Kasamar Holdings plans to assemble a portfolio of acclaimed food brands that will primarily cater to the local market.

“We are excited to enter this space with one of the most reputable food and beverage names from the Philippines. 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,” stated Mr. Mo Bississo, Director at Kasamar Holdings.

Max’s Group currently operates 655 stores including 55 franchised outlets abroad located across North America, Middle East and parts of Asia. #

Max's Group's net income up by 12% in First Half of 2017

Max’s Group Inc. (‘MGI’, the ‘Company’) systemwide sales increased 12% to P8.29 billion for first half 2017 from P7.43 billion for first half 2016. Topline grew 11% to P6.05 billion from P5.43 billion as of 30 June 2016. Restaurant sales rose 11% to P5.04 billion from P4.53 billion anchored on new store openings and steady same store sales performance. Commissary sales went up 7% to P674.04 million from P630.87 million owing to a growing number of franchised outlets. Meanwhile, revenues from new franchises, royalty and continuing license fees gained 23% to P333.65 million compared to P270.52 million for first half 2016 due to additional franchise sign-ups and a larger recurring income stream. As a result, earnings before interest, taxes, depreciation and amortization (EBITDA) stood at P710.03 million translating to a net income of P331.72 million, up 12% versus P295.33 million year-on-year.

“We are happy with the results despite an increasingly challenging environment. Moving into the next quarter, we have lined up exciting product initiatives to cushion cyclicality effects during wet season,” said Robert F. Trota, President and Chief Executive Officer of Max’s Group, Inc. 

From January to June, Max’s Group opened 41 new stores including 6 outlets overseas bringing its total network to 650 branches of which 53 are situated abroad. The Company intends to build another 25-30 stores for the balance of the year.

On the international front, MGI is focused on operationalizing its current pipeline of around 140 stores across various locations in North America, Middle East and Asia. For 2017, the Company has secured two development contracts to establish at least 22 Yellow Cab outlets in Vietnam, Brunei and East Malaysia within five years.

“While efforts are centered on expanding physical presence, we are constantly on the lookout for opportunities to penetrate new geographies,” stated Mr. Peter H. King, Chief Executive Officer of Max’s Group International.

For the period, the Company faced headwinds amidst escalating prices of input components and stiffer industry competition. Nevertheless, it continued to launch notable promotional campaigns such as Chicken All-You-Can for Max’s Restaurant and World Pizza Day for Yellow Cab, both of which were well-received by customers.

“We expect prevailing economic conditions will remain supportive of our business,“ concluded Mr. Trota. #

Pinoy History and Culture Told Through Every Bite of Tinapay Natin

Over the years, Pinoy bread has become a reflection of our identity, and our people’s history and affinity for food. Different bread variants, from the humble pan de sal to the merienda-favorite ensaimada, have become household staples and have played witnesses to countless family and community gatherings.

Apart from enjoying the numerous kinds of bread that we have today, being familiar with our local bread culture’s colorful history helps preserve its rich heritage. Understanding the stories behind each bread also heightens the sense of pride we have in local food.

To continue celebrating the vibrant tradition of Filipino bread-making, the Tinapay Natin Pinoy Bread Baking Competition is back for its second run this year. With the support of Max’s Corner Bakery and Pilmico, the competition vows to be bigger, better, and more inclusive.

Calling Culinary Students and Passionate Home Bakers

The contest once again invites student bakers all over the Philippines to create a beloved traditional bread, as well as to add their own twist to Pinoy favorites with their version of a modern bread. What makes this year’s competition more exciting is that Tinapay Natin will be opened to all non-professional home bakers who want to share their own bread stories.

Apart from the participants’ technical skills, the individual stories of their bread entries will be an important component in selecting this year’s winner. “We are a country who has had a long history of enjoying bread. Even in Max’s Corner Bakery and Max’s Restaurant, the first meal we offered was fried chicken with dinner rolls. It is our hope then that through this competition, our young participants will be able to share the unique story of their bread creations. We want to know the inspiration, the struggles, and the hard work put into making it,” shares Ariel P. Fermin, Chief Operating Officer of Max’s Corner Bakery and Max’s Restaurant.

Tristan Aboitiz, Vice President and Chief Operating Officer of Pilmico, adds, “The entries that we received from last year’s Tinapay Natin competition opened our eyes to the many colorful stories that go with each bread product, and this is a testament of how rich our local bread culture is. We hope that with this competition, we are able to encourage the public to keep the bread-making tradition alive, promote creativity & innovation among Filipino bakers, and of course, support the local bread industry just as much as we and Max’s Corner Bakery do.””

Cash prizes await participants with the most compelling bread stories and entries. This year’s Tinapay Natin will be running from July to October 2017, with regional bake-offs happening in Baguio, Bacolod, and Davao. The winning bread will be awarded during the Grand Finals in Metro Manila in November, and will be made available through Max’s Corner Bakery nationwide as a limited offering.

Learn more about the competition and follow our story by visiting https://facebook.com/TinapayNatin

Max’s Group reports First Quarter 2017 Financial Results

Max’s Group Inc. (‘MGI’, the ‘Company’) systemwide sales rose 10% to P3.93 billion for first quarter 2017 from P3.58 billion for first quarter 2016. Topline growth came in at 9% to P2.91 billion from P2.68 billion as of 31 March 2016. Restaurant sales increased 4% to P2.42 billion from P2.32 billion driven by new store openings and stable same store sales performance. Commissary sales grew 40% to P311.44 million from P222.16 million owing to additional franchised outlets. Meanwhile, revenues from new franchises, royalty and continuing license fees was up 34% to P180.12 million compared to P134.37 million for first quarter 2016 mainly due to a larger recurring income base. Cost of sales improved to 76.1% from January to March 2017 as opposed to 76.3% from January to March 2016. The Company withstood the effects of higher input prices and distribution expenses. As a result, Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at P350.94 million resulting to a net income of P175.98 million, up 8% versus P162.32 million year-on-year.

“We are off to a relatively solid start for the year notwithstanding the challenging commodity pricing situation. While we expect to encounter some more of these headwinds, we will continue to push forward with our strategies,” said Robert F. Trota, President and Chief Executive Officer of Max’s Group, Inc. 

For the quarter, Max’s Group opened 18 new stores including 3 branches abroad among which are Yellow Cab Pizza in Qatar and Hawaii as well as Max’s Restaurant in San Diego, summing its total network count to 632 outlets with 51 located overseas. The Company plans to rollout around 60-70 stores for 2017.

On the international front, MGI was able to secure its first development agreement for the year, with a commitment to establish 10 Yellow Cab Pizza stores in Brunei and 5 Yellow Cab Pizza stores in East Malaysia over the next 5 years.

“Our objective is to bulk up and at the same time operationalize our existing pipeline,” stated Mr. Peter H. King, Chief Executive Officer of Max’s Group International.

For the period, the Company centered on tactical marketing campaigns to strengthen brand mileage and entice awareness for new products. MGI likewise reinforced its raw material sourcing activities to mitigate impending price movements.

“We recognize the need to enhance our capabilities to future-proof our business. We are positive that the overall economic climate will remain supportive,“ concluded Mr. Trota. #

Delighting Generations: MGI 2016 Annual Report

Every Filipino has their own story to share about their favorite Max's Group brand. More than the great food and thoughtful service, it's the bonds forged in our stores that turn customers into the Company's biggest fans.

Read up on our journey through 2016 by downloading our Annual Report: http://bit.ly/MGI2016AR

Max’s Group reports Full Year 2016 Financial Results

Max’s Group Inc. (‘MGI’, the ‘Company’) systemwide sales grew 12% to P15.34 billion for 2016 from P13.72 billion for the previous year. Topline posted double-digit growth of 10% to P11.44 billion from P10.37 billion as of 31 December 2015. Restaurant sales increased 10% to P9.42 billion from P8.59 billion on the back of 77 new stores and steady same store sales performance. Online and delivery revenues came in 24% higher at P1.08 billion from P875.18 million for 2015 anchored on a centralized ordering and dispatch platform. Commissary sales stood relatively flat at P1.26 billion from P1.28 billion owing to closures of certain franchised outlets. Meanwhile, revenues from new franchises, royalty and continuing license fees rose 54% to P766.72 million compared to P497.51 million for 2015 mainly driven by a growing recurring income base and additional overseas franchise contracts. Cost of sales improved to 72.2% for 2016 as opposed to 72.6% for 2015. The Company mitigated pricing headwinds from rising input components with lower logistics and utility expenses. As a result, Earnings before interest, taxes, depreciation and amortization (EBITDA) registered at P1.47 billion translating to a net income of P561.74 million, up 12% versus P501.39 million year-on-year.

“We are fairly upbeat with our full year performance. We were able to successfully execute our strategies amidst a rapidly intensifying competitive environment. Overall, it was another productive year for us,” said Robert F. Trota, President and Chief Executive Officer of Max’s Group, Inc. 

For 2016, Max’s Group rolled out 77 new stores including 16 overseas branches, bringing its total network count to 623 branches with 49 situated abroad. It has kept within reach of its objective of establishing 1,000 outlets including 200 international by 2020.

The Company has earmarked approximately P750 million to P800 million in capital expenditure largely for the rollout of another 60-70 new stores primarily among core brands Max’s Restaurant, Pancake House, Yellow Cab Pizza and Krispy Kreme for 2017.

On the offshore front, MGI continues to build on its expanding pipeline of over 140 stores slated to open in the coming years. Last year, the Company was able to secure eight development agreements for at least 80 stores across various geographies. Among the notable markets penetrated for 2016 include Yellow Cab Pizza in China and Singapore.

“We remain bullish on the pace of our global business. Our focus this year is to boost recurring income by accelerating store development. Nonetheless, we shall constantly be on the lookout for fresh territories,” stated Mr. Peter H. King, Chief Executive Officer of Max’s Group International.

MGI has likewise made significant progress in fortifying its support structure. Last year, the Company invested in major enterprise resource systems to automate processes and harmonize procedures throughout the organization. At the senior management level, MGI has on-boarded key professionals to strengthen its existing talent roster. There are also initial plans to expand commissary capacity to reinforce future growth.

Yellow Cab Pizza Headed to Brunei and East Malaysia

Coming soon another destination will get a taste of New York-themed pizza in every bite. Yellow Cab Pizza, homemade pizza ideation of the country’s largest casual dining chain operator, has sealed its bid into Brunei and East Malaysia.

Max’s Group, Inc. (“MGI”) recently signed a development agreement with YTT Sdn Bhd to establish at least 10 Yellow Cab Pizza stores in Brunei and East Malaysia within five years.

“Again, this proves the enormous mainstream appeal of Yellow Cab Pizza in the global stage. We are excited with the opportunity to serve the flavors of New York to the people of Brunei and East Malaysia. Looking ahead, we will continue to further unlock the brand’s potential in other markets,” said Max’s Group President and Chief Executive Officer, Robert F. Trota.

This marks the second development agreement secured by Max’s Group, Inc. for 2017, resulting to a total international pipeline of around 140 outlets set to open in the coming years.

“We are confident in our tie-up with YTT Sdn Bhd given their strong commitment and familiarity with the local food industry. On our part, we shall extend fundamental support to reinforce this partnership,” Mr. Trota added. 

“We are excited to bring Yellow Cab Pizza to Brunei and East Malaysia. We believe that Yellow Cab Pizza brand inspired by New York, will attract the young demographic group in the market. The flagship store will be situated in Brunei and is slated to open in the third quarter. It will feature the same exceptional quality products complemented by a hip and contemporary store ambience,” said Hj Jameel Ahmed, Director of YTT Sdn Bhd and franchise holder of Yellow Cab Pizza in Brunei and Malaysia.

Yellow Cab Pizza Taps into Vietnam

MANILA – Yellow Cab Pizza, homegrown pizza concept of the country’s largest casual dining operator, is set to debut in Vietnam.

Max’s Group, Inc. (“MGI”) recently inked a development agreement with Blue Star Food Corporation to establish at least 12 Yellow Cab Pizza stores in Vietnam within five years.

“We are encouraged by the interest and result of our initial foray in Vietnam. This reaffirms the global mainstream appeal of some of our brands. As we prepare to launch Yellow Cab Pizza, we will constantly seek opportunities to broaden our reach within the region,” said Max’s Group President and CEO, Robert F. Trota.

This marks the first development agreement signed by Max’s Group, Inc. for 2017, translating to a total international pipeline of 165 outlets slated to open in the coming years.

“Blue Star Food Corporation vast retail experience and proven track record will anchor this franchising setup. From our end, we shall provide the necessary marketing and operational assistance for this partnership,” Mr. Trota added. 

“Vietnam is a fast growing young country. About 60% of the 95 million population is under 35 years old, and the country’s middle class is expected to double to 33 million people by 2020. This young and affluent demographic is leading the change of the F&B industry and a lot of western and casual dining restaurants are flourishing in Vietnam. Pizza is one of the most preferred food offerings, and we believe that Yellow Cab Pizza, with its contemporary and hip look and feel inspired by New York, will appeal to them. We are very excited to partner with Max’s Group, a company that has abdundant experience not only in the Phililppines but also in the international market. We are looking forward to working closely with MGI to bring the best quality pizza experience to Vietnam,” said Nguyen Thanh Nam, Chief Executive Officer of Blue Star Food Corporation.

MGI continues to actively seek reputable franchise partners who share in its vision of building loved brands overseas. Its extensive product line up offers a wide array of concepts suited for different markets. Since 2015, MGI has aggressively grown its offshore business by expanding presence in existing markets and at the same time, penetrating new territories. It relies on a structured international franchising approach backed by a multi-functional support platform to ensure sustainable long-term success.

Yellow Cab Pizza currently operates a network of 150 branches including eight franchised outlets located in Qatar, two in the United Arab Emirates, on in the Kingdom of Saudi Arabia, two in China, one in Hawaii and one in Singapore. Plans are underway to open flagship stores in Vietnam, Jordan, Kuwait, Bahrain, Egypt and Oman.

MGI Welcomes Business Innovator Ariel Fermin as New COO

Manila, Philippines, 20 January 2017 - Max's Group, Inc. (MGI) ushers in the New Year with the appointment of Ariel Fermin as Chief Operating Officer of Max's Restaurant, Max's Corner Bakery and Krispy Kreme. Fermin will be undergoing an immersion program with the various business units in the company from January 16 to April 30, 2017 before joining the company full-time effective May 1, 2017. Reporting to MGI CEO Robert F. Trota, Fermin will also take on the post of Chief Innovation Officer to strengthen MGI's leadership position in the industry.

As MGI recognizes the evolving changes  in the consumer and business landscapes, Fermin's entry into the organization strengthens the brand's leadership core. He will be involved in leading various teams across the organization to improve execution efficiencies in keeping with MGI's vision to build loved brands.

"We are pleased to welcome Ariel to the leadership team," shares Mr. Trota. "As the country's largest casual dining restaurant group, giving our guests delightful experiences is at the core of our business. Ariel brings with him decades of marketing and thought leadership experience that will strengthen MGI's touch points from our brands to our products and on to our stores."

Prior to joining MGI, Fermin has been leading world-class companies and award-winning campaigns. Fermin was the Executive Vice President and Head of Consumer Business of PLDT for five years, where he spearheaded innovative home and mobile solution programs. No stranger to food brands, Fermin was the concurrent President of Greenwich and Chowking, two of the country's biggest Filipino fast food chains from 2008 to 2011. Fermin also ventured into retail as the Country Director for Nike Philippines and South East Asia Category Head for Basketball of Nike from 2005 to 2008. He also held various marketing and sales positions in Coca-Cola and Unilever, and product development roles in Procter & Gamble.

"MGI brands carry with them the warmth, familiarity and excitement that Filipinos naturally gravitate to, and that is why I'm excited to explore opportunities where I can further take the brands. I look forward to working with the hardworking team of MGI to execute our strategic plans and to continue to delight more generations," enthuses Fermin. #

Yellow Cab Pizza Broadens Footprint in Middle East

Max’s Group, Inc. (MGI) is aiming for a chunkier slice of the Middle Eastern pizza segment.

MGI recently sealed a development agreement with Silver Group to establish at least 22 Yellow Cab Pizza stores across three countries namely Kuwait, Bahrain and Oman within 5 years starting in January 2017.

“We are pleased with the opportunity to further expand our presence in the GCC (Gulf Cooperation Council) region. Our international business has been scaling up quite aggressively with Yellow Cab Pizza emerging as the most coveted brand. We are optimistic in sustaining this pace as we possess the necessary structure and support systems to fuel overseas growth through franchising,” said Max’s Group President and CEO, Robert F. Trota.

This is the seventh overseas franchise contract forged by MGI for 2016, translating to a total international pipeline of 153 outlets slated to open in the coming years.

“Silver Group pioneered our pizza offerings in this territory. We appreciate their continued trust and for sharing our vision of Yellow Cab Pizza as a global mainstream brand. Together, we are confident of replicating our earlier success in Qatar into surrounding nations,” Mr. Trota added. 

“Silver Group greatly values the partnership and mutual success. Therefore, it was one of our great achievements to have an agreement with MGI to operate yellow cab in Kuwait, Bahrain and Oman as we believe on the brand potential in these markets after the achieved results in Qatar. It is our commitment to deliver the best possible customer experience and great quality Pizza in Gulf region.” Said Silver Group CEO, Abdulrahman Al-Kaabi.

Yellow Cab currently operates a network of 138 branches including seven franchised outlets located in Qatar, one in UAE, one in KSA and two stores in China. Plans are underway to open flagship stores in China and Singapore, Hawaii and Jordan. #

Pilmico, Max’s Corner Bakery award Iloilo students as “Tinapay Natin’ champs

With their flavorful baked creations and compelling bread stories, budding bakers Roy Tabocolde and Greegy Cabarrubias from Iloilo’s St. Therese MTC College—La Fiesta emerged as the grand winners of the Tinapay Natin Pinoy Bread Baking Competition’s Grand Finals held last October 13 at Treston International College.

Tabocolde and Cabarrubias bagged Php. 50,000 in cash prizes plus the exclusive chance to have their bread creations distributed in over 150 Max’s Corner Bakery branches nationwide.

The Tinapay Natin Pinoy Bread Baking Competition, an initiative by Pilmico and Max’s Corner Bakery that is inspired by the massive success of last year’s Mahalin Pagkaing Atin movement, aims to also inspire more young Filipinos to carry on the craft of Pinoy bread-making.  

Decadent favorites and a surprise twist

For their original bread entries, Tabocolde and Cabarrubias placed the spotlight on two well-loved Filipino breads: pastel, a popular pasalubong in Cagayan de Oro; and ensaymada, which are traditional favorites in Bulacan and Pampanga.

Their breads, named Cagayan Pastel and Ensaymada Royale, proved supreme with their fluffier crumb, surprise filling, and rich toppings.

For the last competition round, Tabocolde and Cabarrubias created their Sesame Streusel Roll as their third original bread. This reinvention combined the Cinnamon Roll and the Ilonggo butterscotch. On bagging the top prize, the winners had this to say, "It was very nerve-wracking to bake during a competition and we weren’t really expecting to win. But, we concentrated on our entries and put our hearts into baking them.”

Molding the future of our local bread culture

For Pilmico and Max’s Corner Bakery, the competition was not only an opportunity for our young bakers to showcase their skills and creativity, but also to help share the progress as the winners were able to choose a beneficiary school.

“We want to give local producers better opportunities by bringing the livelihood to them,” said Norie Bermudez, the Vice President for Sales of Pilmico “Our hope is for these young bakers who joined the competition to serve as our ambassadors of bread culture in every bite.”

As a restaurant that’s considered a cornerstone of local dining, Max’s has aligned with Pilmico’s goal to inspire creation and promote a better love for food.

Carolyn Trota-Salud, President and Director of Max’s Group of Companies, said: “We also believe that it is Max’s role to help promote local talent, as well as ensure that Filipino products will have world-class flavor that can compete globally.” #

More Filipinos Choose Local Food, says Max’s Group CEO

At the recently concluded 25^th Visayas Area Business Conference (VABC) in Ormoc, Leyte, Mr. Robert Trota, President and CEO of Max’s Group, Inc. (MGI), shared how Filipino diners are more inclined to choose restaurants that serve authentic-tasting and healthy food. The demand for products made from organic ingredients shows that Filipinos are becoming more adventurous with food even as they remain conscious about their consumption. More Filipinos choose locally sourced food, which help support the country’s agricultural and food manufacturing industries. MGI has been working with these local industries to capitalize on opportunities to create awareness and demand for homegrown products. It has introduced the Tinawon Flavored Rice Dishes that proudly feature heirloom rice harvested by Benguet farmers.

In keeping with its thrust to continually help local produce, Mr. Trota also made a commitment in that session to work closely with the Research and Development teams of Leyte and Samar to identify products that MGI can outsource from these provinces. As a starter, MGI has looked into sourcing the danggit supply of Pancake House from Palompon, Leyte. Lastly, Mr. Trota mentioned that MGI is exploring partnerships with the provincial government of Samar for their coconut program as the province is widely recognized for its rich coco industry. #

Yellow Cab awards winners of Football Cup

Yellow Cab Pizza Co., in partnership with KAYA Futbol Club (KAYA FC), proudly concluded the first ever Yellow Cab Football Cup at the Blue Pitch Circuit Makati. Both parents and kids joined in on the fun with the 3 Kinect stations, foosball tables, and graffiti wall around the football grounds. Lucky winners got to take home goodies from the festivities and witness a momentous celebration as six champions were crowned and bagged P20,000 each for their chosen charity, while special awards were given away by Yellow Cab.

For the Under 7 category, British School Manila White emerged as champion. MVP for the Under 7 category was awarded to Alana Gil, Best Midfield went to Kyle Harding, Best Defender was Xander Thompson, Best Goal Keeper Zach Gunston, and Best Striker with a total of eight goals was Aaron Long.

La Salle Greenhills emerged as champion for the Under 9 category, with the MVP and Best Defender awards going to Aaron Azurin, awards for Best Midfield and Best Striker with a total of seven goals went to Alonzo Buendia, and Best Goal Keeper was Kenzo Chua.

The Under 11 category saw the Makati Football Club as champions. MVP for this category was Joey Takuma, Best Midfield Mateo Manas, Best Defender Josh Merino, Best Goal Keeper Alfonzo Gonzales and Best Striker with a total of 8 goals Lian Evangelista. The Makati Football Club also reigned supreme as champion for the Under 13 category. MVP award went to Adri Caraig, Best Midfield Charles Hawak, Best Defender Rain Castro, Best Goal Keeper Ira Villanueva, and Best Striker with a total of nine goals Agiel John Rojo.

The team from Gawad Kalinga finished as champion for the Under 15 category. Awardees for this bracket include MVP Jexter Galicia, Best Midfield Jonan Avila, Best Defender John Datuin, Best Goal Keeper Axel Dellosa, and Best Striker with a total of eight goals is Lloyd Soco from La Salle Greenhills.

Lastly, the Under 17 Girls category had Grasshoppers from Brent International School as champion. The MVP and Best Striker awards went to Lindsay Whaley who finished with a total of eight goals, Best Midfield went to Carmen Castellanos, Best Defender Anne Marie Dimanche, Best Goal Keeper Jillian Davies.

The charities represented by the winning teams and who will be receiving the cash prize donation include Fairplay for All Foundation, Field of Hope, I CAN SERVE Breast Cancer Foundation, Gawad Kalinga, Moran Foundation and Called to Rescue.

At the awarding ceremonies, MGI President Robert Trota shares, “Yellow Cab believes in the sport of football because as in any sport, it promotes team spirit, camaraderie, and sharing both the wins and loses. Starting kids young helps instill the good values that we want them to grow up with. Guided with discipline hard work, and giving back, our partnership with KAYA FC exemplifies just that.”

After all, Yellow Cab provides a filling meal meant to be shared, so it’s easy to understand the connection. Jim Fuentebella, MGI Chief Marketing Officer adds, “We want our Philippine team to be part of the World Cup, but we have to start somewhere and now is the perfect time to do so when football is becoming a more popular sport. It’s through initiatives like these that we see the potential for it to grow, and at the same time be able to help and reach more people.” # 

Max’s Group reports Nine Months 2016 Financial Results

Max’s Group, Inc.'s (‘MGI’ or ‘Company’) systemwide sales grew 12% to P11.09 billion for the nine months ended 2016 from P9.87 for the nine months ended 2015. Topline registered double-digit growth of 11% to P8.09 billion from P7.30 billion as of 30 September 2015. Restaurant sales increased 8% to P6.72 billion from P6.20 billion driven by 22 new stores opened from July to September and steady same store sales performance. There are likewise plans to shift into quicker formats for certain brands to benefit from higher volume turnover and lower fixed overhead. Commissary sales rose 19% to P971.03 million from P813.59 million while revenues from franchise, royalty and continuing license fees increased 39% to P399.87 million versus P287.05 million compared to similar periods in 2015. Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at P889.47 million resulting to a net income of P380.56 million, up 3% versus P368.86 million year-on-year.

“The third quarter is normally our lean period owing to the wet climate and other cyclical factors. Nonetheless, the historical slowdown should reverse ushering into the Christmas season,” said Robert F. Trota, President and Chief Executive Officer of Max’s Group, Inc. 

To date, Max’s Group has rolled out 55 new stores including 11 international branches, bringing its overall count to 611 stores with 44 located abroad.

On the overseas front, MGI continues to convert its existing development pipeline of 91 outlets into physical stores. During the third quarter alone, MGI unveiled flagship stores for Yellow Cab Pizza in Beijing and Changsha Province in China as well as Sizzlin’ Steak in Vietnam.

“From securing territories, focus is now centered on store building activities to boost our recurring income base. In the same way, we remain in pursuit of leads into other markets,” stated Mr. Peter H. King, Chief Executive Officer of Max’s Group International.

The Company is committed to further reinforce its support infrastructure anchored on a shared services model. It recently invested in a modern human resources information system designed to electronically consolidate people-related requirements. This initiative is expected to significantly reduce manual processing intervention translating to maximized productivity across the business. On capital expenditure, MGI has mapped key growth strategies to ensure effective deployment of assets into value-accretive ventures.

“We encountered higher commodity prices aligned with inflationary movement. While mitigating measures are in place, we constantly improve our capabilities and menu mix to manage rising input materials,” added Mr. Trota.

“For the remaining months of 2016, we expect the prevailing economic environment to sustain its positive trend. We will open another 20-30 stores to close the year, putting ourselves in a strong position to meet Yuletide demand,“ concluded Mr. Trota. #

Max’s Group reports 1st Half 2016 Financial Results

Max’s Group Inc. (MGI, PSE: MAXS) posted a net income of P295.33 million for first half 2016, up 4% versus P284.67 million for first half 2015. Topline registered double-digit growth at 10% to P5.43 billion from P4.93 billion. Restaurant sales increased 9% to P4.53 billion from P4.16 billion driven by new store openings and stable same store sales performance. Commissary sales rose 13% to P630.87 million from P559.63 million while revenues from franchise, royalty and continuing license fees increased 28% to P270.52 million compared to P211.66 million in the same period last year. Systemwide sales grew 13% to P7.43 billion from P6.55 billion for first half 2015.

“The results are consistent with our growth story and the overall state of the economy. For the second half, we will continue to execute a balanced store rollout in key strategic areas,” said Robert F. Trota, President and CEO of Max’s Group, Inc.  

To date, Max’s Group has opened 35 stores including an international outlet for Max’s Restaurant in Kuwait. As of end-June 2016, MGI operates a network of 600 stores including 38 abroad.

For the offshore business, MGI has so far inked 11 development agreements for 2016. These are comprised of 70 Yellow Cab Pizza stores across China, Saudi Arabia, United Arab Emirates, Singapore, Egypt and Jordan, 13 Pancake House outlets between Qatar and United Arab Emirates, 10 Sizzlin’ Steak branches in Vietnam and 3 Max’s Restaurant in San Diego. Combining existing operations, MGI has a secured overseas pipeline of over 130 stores slated to open in the coming years.

“We have surpassed expectations due to the overwhelming response of foreign markets to our international expansion program. This clearly shows that our brands are well-primed for the global stage,” stated Mr. Peter H. King, Chief Executive Officer of Max’s Group International.

On support activities, MGI continues to derive operational efficiencies through its shared services approach. Supply chain initiatives have benefited from negotiated pricing and prompt payment discounts translating to lower costs for food and non-food items. Migration to an upgraded enterprise resource-planning platform has likewise paved the way for process standardization efforts.

“For the remainder of 2016, we share in the optimism on the general macro climate of the country. Domestic consumption is still seen to stir economic activity in the long-term. As such, to capitalize on this growth outlook, we are looking to close the year with around 60-70 new stores,” concluded Mr. Trota. #

Poised for Growth: MGI 2015 Annual Report

Genuineness, thoughtfulness and delight. These three have been the main ingredients for the recipe of continued success of Max’s Group, Inc. (MGI). With 588* stores across its brands, 35 of which are located across North America, the Middle East, and Southeast Asia, the Company takes pride in the fact that, over the years, its brands have achieved the status of being some of the most iconic restaurant brands in the Philippines.

70 years after the Company started in 1945 with a single branch of Max’s Restaurant in Quezon City, MGI has since established a reputation for business excellence. After successfully building the Max’s brand, the Company kept the momentum going by opening the first Krispy Kreme and Jamba Juice stores in 2006 and 2011, respectively, as MGI was awarded the master franchise license of these two globally loved international food brands.

The Company punctuated its status as one of the major players in the local dining scene when it acquired the Pancake House Group in 2014. The move resulted in MGI expanding its portfolio of brands to a total of 14—namely Max’s Restaurant, Max’s Corner Bakery, Pancake House, Yellow Cab Pizza Co., Krispy Kreme, Jamba Juice, Teriyaki Boy, Dencio’s, Kabisera, Sizzlin’ Steak, Singkit, Le Coeur de France, Maple, and Meranti, the Company’s initial foray into the hospitality industry.

In addition, MGI has also ventured into the shared dining space arena with Burgos Eats and Eco Eats, showcasing the depth of its portfolio and the variety of dining experiences it can share for the local casual dining market.

For a copy of MGI's 2015 Annual Report, click here. #

*As of December 31, 2015

Max’s Group Reports 1st Quarter 2016 Financial Results

Max’s Group Inc. (MGI, PSE: MAXS) reported a net income of P162.3 million for first quarter 2016, up 8% compared to P150.6 million for first quarter 2015. Topline growth was at 12% to P2.68 billion from P2.40 billion. Restaurant sales increased 13% to P2.32 billion from P2.05 billion driven by steady same store sales growth and new store openings for the period. Commissary sales declined 13% to P222.2 million from P255.4 million was offset by revenues from franchise, royalty and continuing license fees which grew 46% to P134.3 million versus P92.0 million, year-on-year.

“The numbers are in line with our estimates. We are now starting to realize the revenue impact of new stores that came onboard in the latter part of 2015. By recalibrating our design and build plan, we expect a leveled and systematic rollout of stores for the entire year,” said Robert F. Trota, President and CEO of Max’s Group, Inc.

From January to March 2016, Max’s Group opened 9 stores mainly across star brands Max’s Restaurant, Pancake House, Yellow Cab Pizza and Krispy Kreme. This includes 3 international outlets namely Max’s Restaurant in Qatar, Yellow Cab Pizza in United Arab Emirates and a Sizzlin’ Steak concept store in California. As of end-March 2016, MGI operates a chain of 577 stores including 37 abroad.

On to the international front, MGI has so far inked 5 development agreements for 2016. These are comprised of 25 Yellow Cab Pizza stores in China, 5 Pancake House stores in Qatar, 5 Yellow Cab Pizza stores in Singapore, 5 Yellow Cab Pizza stores in Jordan and 10 Yellow Cab Pizza stores in Egypt. This translates to a firm overseas pipeline of more than 130 outlets set to be operational in the coming years.

“We have gained a lot of traction since launching our offshore expansion program. Exposure and interest in our brands is scaling up faster than expected as we tap new territories,” stated Mr. Peter H. King, Chief Executive Officer of Max’s Group International.

To capitalize on digital opportunities, Max’s Group unveiled the Yellow Cab Pizza mobile application to provide for seamless ordering. At the moment, it has registered over twenty seven thousand installs within a span of two months, making it one of the most popular downloadable content in the food and beverage category. Other brands are currently in various stages of app development and will soon follow suit.

“We strive to keep pace with the latest market trends, at the same time allowing us to strengthen ancillary revenue channels,” explained Mr. Trota. 

Furthermore, the Company is on track with its full migration to an upgraded enterprise resource-planning platform. This initiative aims to consolidate support functions by optimizing systems and standardizing procedures leading to operational efficiencies and cost savings.

“For 2016, we are positive that the prevailing macroeconomic backdrop will remain favorable spurred by continuous consumer spending. We are primed to open another 60-70 stores in key strategic locations. Essentially, we have laid the groundwork to anchor our growth moving forward,” concluded Mr. Trota. #

Yellow Cab Pizza Goes to Jordan and Egypt

Max’s Group, Inc. (MGI) continues to aggressively expand its international business as it set its sights on new markets in the Middle East.

MGI recently inked a development agreement with Jalal Holding to establish at least 5 Yellow Cab Pizza stores in Jordan and 10 Yellow Cab Pizza stores in Egypt within 5 years.

“We continue to chart new territories for expansion overseas. Our previous ventures and recent openings in this region have proven successful. We are truly witnessing the emergence of Yellow Cab Pizza as a global mainstream brand,” said Max’s Group President and CEO, Robert F. Trota.

This is the fifth develop agreement sealed by MGI in 2016 resulting to a total commitment of 131 international outlets to be rolled out in the coming years.

“We partnered with Jalal Holding as we believe in their expertise and business prowess to spearhead this endeavor. Their credentials ensure consistent delivery of best-in-class products and services to customers,” Mr. Trota added.

Established in 2016, Jalal Holding is an emerging Food and beverage group in Jordan and shortly in Egypt. The company is planning to expand into F&B business in Jordan and Egypt in the next years, to bring well known international brands into the market.

“We believe the food and beverage industry in Jordan and Egypt specifically has a huge potential. With our newly established company Jalal Holding, we plan to satisfy Jordan’s and Egypt’s customers’ growing needs of high quality food and beverage products. We are delighted to choose Yellow Cab Pizza as our first venture with MGI Group. Yellow Cab Pizza serves a New York style premium pizza in a fast casual dining setting that our market craves for,” remarked Jalal Holding CEO, Jalal K. Dudin.

“We will start set-up and operation in Amman this year, followed by Egypt by early 2017. Jordan and Egypt's food and drink industry is poised for positive growth and a large consumer base, we are so excited to bring the feel of the “Big Apple” to Jordan and Egypt. As well as looking forward to expand Yellow Cab Pizza branches and introduce Max’s Group other brands to both markets in the near future,” added Jalal K. Dudin, CEO Jalal Holding.

Yellow Cab currently operates a network of 135 branches including 6 franchised outlets located in Qatar and 1 in UAE. Plans are underway to open its flagship store in Beijing, Changsha and Singapore as well as a pilot branch in Hawaii.

Yellow Cab Pizza Enters Singapore

Max’s Group, Inc. (MGI) intends to penetrate a major food and beverage hub in Southeast Asia.

MGI recently sealed a development agreement with Pagh Pte. Ltd. to build at least 5 Yellow Cab Pizza stores in Singapore.

“We are thrilled with the opportunity to bring Yellow Cab Pizza in a highly strategic market such as Singapore. We are confident that our mainstream offerings and value proposition will allow us to stay competitive alongside some of the biggest global food

names,” said Max’s Group President and CEO, Robert F. Trota.

This is the fourth development agreement inked by MGI for 2016, translating to a total of 116 international stores set to open over the next few years. MGI envisions operating a network of at least 200 outlets overseas by 2020.

“We found the right partner in Pagh Pte. Ltd. for this venture. We can rely on their focus and determination to deliver best quality products and genuine service to Singaporeans,” Mr. Trota added.

Pagh Pte. Ltd. is a family-owned company set up primarily to invest in the casual dining business. "We recognise that Yellow Cab Pizza offers a different more exciting experience than the brands currently now on offer in Singapore. Singaporeans are discerning in their food experience. We are therefore confident that Yellow Cab Pizza will be the Singaporeans place of choice for American Italian casual dining," from Tiara K. Chopra, Director.

Yellow Cab currently operates a network of 135 branches including 6 franchised outlets located in Qatar and 1 in UAE. Plans are ongoing to open its flagship store in Beijing and Changsha as well as a pilot branch in Hawaii.

Yellow Cab Pizza Expands Presence in China

Max’s Group, Inc. (MGI) is set to expand its presence in China through premium New York pizza concept Yellow Cab Pizza.

MGI recently signed another development agreement, this time with Changsha New Yorker Catering Management Co., Ltd., to build at least 10 Yellow Cab Pizza stores in Hunan Province over the next five years. MGI’s initial foray into this market is through Beijing, Tianjin and parts of Hebei Province.

“This is the second franchise contract secured in China within the span of a few months. The strong interest in Yellow Cab Pizza reinforces our vision of growing the brand successfully all over the Chinese region,” said Max’s Group President and CEO, Robert F. Trota.

This marks the third development agreement inked by MGI for 2016, bringing its total international pipeline to 111 stores slated to open in the coming years. MGI has announced plans to establish a network of 200 outlets overseas by 2020.

“We consider Changsha New Yorker Catering Management Co., Ltd. a suitable partner to serve our products in another key area in China. They possess the capabilities and business acumen to operate successfully,” Mr. Trota added.

Changsha New Yorker Catering Management Co., Ltd. was established to primarily engage in the food and beverage business.

“We are very excited about the cooperation with MGI and become the partner of Yellow Cab Pizza. When the first time we get to know Yellow Cab Pizza we are confident that Chinese customers will love it. Yellow Cab Pizza’s brand position is very accurate and owns a well-developed business model, which means a pizza from New York, easy understand food menu, easy recognized yellow and black color, standardized operation procedure, and easy placed online order procedure. We are very confident that Yellow Cab Pizza can quickly expand the market and become the leading pizza brand of China market,” stated Mr. Felix Lee, Director of the Board for Changsha New Yorker Catering Management Co., Ltd.

Yellow Cab currently operates a network of 135 branches including 6 franchised outlets located in Qatar and 1 in UAE.

Pancake House to Open in Qatar

Max’s Group Reports Full Year 2015 Financial Results

Max’s Group Inc. (MGI, PSE: MAXS) posted a net income of P501.4 million in 2015 coming from a reported loss of P66.2 million in 2014. On a pro-forma basis, topline growth was at 6% to P10.4 billion from P9.8 billion despite deliberate closures to rationalize store network and improve overall profitability. Restaurant sales increased 6% to P8.6 billion from P8.1 billion driven by additional company-owned and franchised outlets in 2015. As a result, commissary sales and franchise income rose 2% to P1.3 billion and 37% to P497.5 million, correspondingly.

Excluding one-time gains and non-recurring charges, core net income stood at P555.0 million.

“The results validate a complete turnaround of our business. From a transformative period in 2014, we have successfully transitioned to the growth phase. We are confident with our strategies to sustain this trajectory in the coming years,” said Robert F. Trota, President and CEO of Max’s Group, Inc.

In 2015, Max’s Group opened 84 stores primarily across winning brands Max’s Restaurant, Pancake House, Yellow Cab Pizza and Krispy Kreme. This includes pioneering its first multi-brand shared space dining concept Burgos Eats and Eco Eats, located in Bonifacio Global City and Makati, respectively. While bulk of the stores were built in the last quarter, these new stores are seen to significantly contribute to revenues in 2016. As of end-2015, MGI operates a network of 588 stores including 35 abroad.

“There were certain delays encountered in our rollout schedule beyond our control. Nevertheless, full revenue impact of our new stores is expected to be realized this year,” added Mr. Trota.

Moreover, MGI was able to sign 5 development agreements in 2015. A total of more than 50 outlets overseas have been earmarked to open in the coming years. These are 15 Yellow Cab Pizza stores in Saudi Arabia, 10 Yellow Cab Pizza stores and 8 Pancake House stores in United Arab Emirates, 10 Sizzlin’ Steak stores in Vietnam and 3 Max’s Restaurants in San Diego. Early this year, MGI inked a deal to establish 15 Yellow Cab Pizza stores in China and a minimum of 5 Pancake House stores in Qatar.

“We are excited about the prospects of our brands in the global stage. Our international expansion program continues to garner interest from several foreign groups. We are aiming to seal additional offshore markets in 2016,” stated Mr. Peter H. King, Chief Executive Officer of Max’s Group International.

Max’s Group continued to invest in 2015 in support operations to generate synergies and efficiencies. MGI adopted category management in the sourcing of raw materials to leverage on negotiated prices and terms with suppliers. Commissary equipment was modernized to further enhance production capabilities. The Company embarked on a migration to an upgraded enterprise resource-planning platform at record pace to streamline processes. Furthermore, MGI has boosted its ancillary revenue channels with the introduction of mobile ordering applications specifically for Krispy Kreme and Yellow Cab Pizza.

“We recognize the need to reinforce our support system to carry us forward. We also want to seize opportunities on the prevailing mobile and delivery trend among consumers. Other brands such as Max’s, Pancake House and Teriyaki Boy will soon follow suit with their own,” remarked Mr. Trota

As part of its on-going rationalization program, MGI winded down retail operations of its Le Coeur De France coffee shop and boulangerie.

“There will be no physical operations for Le Coeur De France for now but the brand will remain and continue to serve its institutional clientele. We may revisit its business model and may consider re-launching in the future,” said Mr. Trota

Yellow Cab PH Steps into the Mobile Arena with an App

The new Yellow Cab app, which is created in partnership with Mobext Philippines, comes with an array of features and functions for the most convenient pizza delivery service.

One remarkable feature of this mobile app is its coupon distribution to customers who rate their dine-in or in-app ordering experience. App users can redeem the coupons in-store or while ordering for delivery/pick-up.

The app lets users track their pending order with its Order tracker feature as the app shows the different stages of the delivery or pick-up process. For deliveries, you will know when the status shows Order Received, Preparing Order, On Its Way or Order Delivered while for pick-up, it will be Order Received, Preparing Order or Ready for Pick-Up.

You can now also look up the nearest Yellow Cab store branches with the app’s store locator function. Aside from each branch’s address, map location, and contact number, the app offers the call function so you can conveniently get in touch with any Yellow Cab store.

Yellow Cab’s pizza delivery app is just in time for the smartphone penetration boom in the country. With the smartphone ownership rate in the Philippines growing from 50% to 55% this year,(Source: WeAreSocial SG Digital in 2016) this mobile marketing effort will help the company in reaching their customers on their most-used gadgets.

According to Coochy Mamaclay, Yellow Cab’s Marketing Manager, “Designed to match our brand’s identity and message, the Yellow Cab app enables our consumers to experience the good stuff by a few taps on their mobile devices. It is fast, straight-forward and convenient, giving them a one-of-a-kind experience that caters to their needs, interests. In Yellow Cab, we always ensure that we let you Get Straight to the Good Stuff!”

Mobext Philippines’ CEO Arthur Policarpio said, “Our goal at Mobext is to re-invent the very concept of retailing. We believe that in today’s mobile-first digital era, stores need to approach retail with a multi-channel approach that combines the power of their brick and mortar presence, with a strong mobile-first digital store. We are happy and proud to work with Yellow Cab in their first foray into mobile-first digital retailing. We are confident that the Yellow Cab mobile app will delight consumers, as well generate significant revenues for Yellow Cab.”

The Yellow Cab app is now in Google Play and Apple App Stores. You can also follow Yellow Cab through its website andFacebook page for exciting updates.

Krispy Kreme and Mobext Win Bronze in Mob-Ex Awards 2016

The Krispy Kreme Philippines app, developed by its mobile marketing agency Mobext Philippines, bagged the country’s only win in the Mob-Ex Awards 2016.The app received Bronze Award for CRM, Loyalty and Engagement category, beating Mastercard and Grab. The Gold award went to Zalora SEA while the Silver award went to HappyFresh.

Aside from being a doughnut delivery app, the Krispy Kreme app (available on App Store and Play Store) is a 100% mobile-based, completely cardless loyalty program, combining mobile commerce and rewards in one sweet package.

The mobile delivery component addressed the lack of delivery services for desserts while the Krispy Kreme Stamp Card rewarded app users with treats and exclusive e-coupons.

“We are honored to receive recognition from this prestigious award. This celebration motivates us to do more to serve and reward our Krispy Kreme fans with the best through our mobile marketing efforts”, said Ariane M. Valinton, Senior Marketing Manager of Krispy Kreme.

According to Arthur Policarpio, CEO of Mobext Philippines, “We are happy that our partnership with Krispy Kreme helped build meaningful connections and lifetime value between the brand and its mobile-savvy customers. Winning the bronze medal in Mob-Ex Awards recognizes our ability to compete with the best communication brands across the region and prove that mobile is business.”

This is Mobext Philippines’ 9th international award in the last three years and the 4th award bagged from Mob-Ex.

[Repost from http://www.mobext.ph/blog/krispy_kreme_mobext_win_bronze_mob_ex_awards_2016)

MGI leads charge to turn Baguio, Cordilleras as progressive hubs for agriculture, livelihood, and tourism

The idyllic Cordillera region is fast becoming a progressive hub for tourism, sustainable livelihood, and local agricultural heritage behind the efforts of the country’s leading organizations, led by the Max’s Group, Inc. (MGI).

In its efforts to help strengthen the local agriculture sector—a critical backbone of the food industry—MGI is partnering with the Department of Tourism-CAR-Baguio to empower farming communities to be competitive and become a source of pride for local food through the launch of its Corporate Sustainability, Synergies, and Relationships (CSSR) program. The launch follows the CAR Sustainable Farming and Tourism Conference, a program that MGI helped put together, where experts from the agriculture, business, and food sectors gather to help improve the Cordillera region’s farming methodology and achieve sustainable income.

“From educating the youth to educating communities to make their own success stories, we at Max’s Group, Inc. have always been very conscious about how we fulfil our role to bring greater value to our society in areas close to our hearts,” says MGI Director Carolyn T. Salud. “As 70% of the country's poorest communities come from the rural areas where agriculture is the dominant source of livelihood and employment, we believe that it is imperative that all concerned sectors—the government, the private sector, and civil society—work together to help make Philippine agriculture more resilient and bring about sustainable livelihood to local farmers.”

Empowering communities that matter

As the country’s largest casual dining operator, MGI leads the efforts of huge organizations in advocating the country’s farming communities by elevating the Filipinos’ sense of pride in local food and local produce.

“Having a prominent standing in the local casual dining segment, we believe that we have the opportunity to lead the efforts to empower our humble yet under-advocated farming communities,” Salud adds. “We hope that by working with local government units and other organizations whose values are very much aligned to ours—such as CAR and the MPA consortium—we will be able to forge more meaningful relationships across different sectors and start creating ripples of progress from there.”

Max’s Group’s CSSR programs—which will be launched in Baguio this February—will be guided by these pillars: (1) pride of product and place, and (2) enterprise development.

Spreading the love by giving back

While MGI has already been promoting pride of product and place by serving local specialties in select branches nationwide, the company sees a bigger opportunity to create a larger discourse towards this goal. Hence, it is now rendering its support to local farms by making them ambassadors of local food through its “Adopt-a-Farm” program.

Additionally, MGI will soon be forging partnerships with LGUs and farmer associations to source ingredients locally, thus providing a permanent market for high-quality yields being produced by its partner communities. 

“We will be rolling out our Tinawon Rice Dishes as a symbol of our commitment to our partnership with the farming communities of the Cordilleras,” Salud shares. “These dishes will proudly feature the tinawon rice harvested by Benguet farmers, and will be rolled out in select Max’s Restaurants in Northern Luzon.”

The Tinawon Rice Dishes—to be offered in adobo, tinola, and danggit variants—will be served in Max’s Restaurants in SM Baguio, SM Rosales, Urdaneta, SM Tarlac, Luisita, La Union, SM Cabanatuan, and Maharlika Highway in Cabanatuan City in May.

Through its portfolio of loved brands, MGI is inspiring greater appreciation for local produce while giving local farmers a chance to have stories of their agricultural heritage heard through its pioneering CSSR initiatives. Drawing inspiration in helping create communities that thrive from the same vision it has in building well-loved brands, the Max’s Group is redefining the idea of true corporate success—one that is rooted on the organization’s capability to nurture long-term progress that benefits even the most humble members of our society. #

MGI poised to take a slice of China's $2B pizza market via Yellow Cab Pizza

The Philippines is set to invade China’s global dining scene beginning this year as Max’s Group, Inc. (MGI), the country’s largest casual dining operator, ushers the maiden entry of Yellow Cab Pizza in Asia’s biggest food market.

Over the years, China's burgeoning pizza market has been drawing the attention of international food brands, following a phenomenal surge that has seen it grow to become a $2 billion industry (equal to 1.6 percent of the $125-billion global market) in 2012[1]. This figure is a stark jump from what the market registered in 2007 when it accounted for about $822 million of a $111.2 billion world market, based on statistics from Euromonitor International.

Despite the slowing down of China’s economy the past year, the younger generation and the millenials continue to be the star of China’s growing pizza market as they can possess a certain degree of openness towards foreign food concepts and look forward to new dining experiences.[2] In addition, Chinese tourists, recognized as the world’s third biggest spenders,[3] are traveling now more than ever and are taking the world’s culture—and the experience imparted by foreign brands—back home.[4] This has resulted to the tastes of Chinese consumers continuing to evolve and develop as they become more accustomed to Western food culture.[5]

Acknowledging the potential of establishing its presence in a market with a tremendous upside, MGI recently inked a development agreement with its China-based partners from JuYangYiTong of the Zhongfa Group to build at least 15 Yellow Cab Pizza stores in China within the next five years. This key partnership—the first development agreement signed by MGI with an international partner for 2016—keeps the company on track with its plans to open 200 stores by 2020.

“We are thrilled with the opportunity of bringing our pizza to Beijing, Tianjin and parts of Hebei province. We share the excitement with our partner, JuYangYiTong of the Zhongfa Group, to serve our food offerings to the Chinese,” said Max’s Group President and CEO, Robert F. Trota. “This partnership is reflective of the strong interest in our brands. We were able to surpass targets in terms of signing up new territories abroad in 2015 and we aim to sustain this momentum in 2016.”

Carving a following in Asia’s biggest dining market

After punctuating its status as a major player in the local dining scene in 2014, MGI ended 2015 on a high note by opening more overseas franchises, including 9 international stores across its portfolio, to bring its global brands to key areas in Asia Pacific, the United States, Canada, and the Middle East.

Now, MGI is upping the ante and collaborating with JuYangYiTong of the Zhongfa Group as it embarks on its maiden venture in China with its premier New York-inspired pizza brand, Yellow Cab Pizza.

JuYangYiTong is the Zhongfa Group’s latest vertical company that facilitates the latter’s expansion into F&B business by bringing well-known international brands in China. Established in 1993, Zhongfa Group is a diversified group based in China engaged in the businesses of commercial real estate, electronic business and hotel management, with operations spanning across China, the Philippines, Kenya, Palau, Switzerland, and soon in Canada.

“We believe the food and beverage industry in China has huge potential. With our newly established company, JuYangYiTong led by one of the Zhongfa family members Mike Zhang, we plan to satisfy the Chinese customers’ growing needs of high quality food and beverage products,” shares Zhongfa Group CEO Guiping Wang. “We are delighted to choose Yellow Cab Pizza as our first venture with the MGI Group. Yellow Cab Pizza has everything that China’s discerning customers are looking for—quality, service and ambiance.”

At present, MGI operates a network of 118 Yellow Cab Pizza branches, including six outlets located in Qatar.

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About Max’s Group, Inc.

Max's Group, Inc. (PSE: MAXS) traces its heritage to the beginning of Max's Restaurant in 1945. Today, Max's Group is the largest operator in the Philippine casual dining segment. Its family of brands include Max's Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Max’s Corner Bakery, Teriyaki Boy, Dencio’s, Meranti, Le Coeur De France, Maple, Kabisera, Singkit, and Sizzlin’ Steak.

About ZhongFa Group

ZhongFa Group is a diversified group, established in 1993 in Beijing, China with operations spanning China, the Philippines, Kenya, Palau, and Switzerland. The Group has interests in the commercial real estate, electronic business, and hotel management. ZhongFa Group has three large electronic components stores which are 36,000 square meters combined, and two large shopping centers that cover 40,000 sqm. The Group also has two office building projects in Makati City in the Philippines. Zhong Fa operates AA Lodges in Kenya Amboseli and Masai Mara, Golden Phoenix Hotel in Boracay, Philippines and Manila, while another hotel in Palau is being prepared to be built.

[Reposted] SAN DIEGO EATER: Famous Filipino Fried Chicken Chain Opening Three San Diego Shops

Does San Diego have a big appetite for fried chicken? A Filipino-owned chain is counting on it. Known as "the house that fried chicken built," Max's Restaurant was first founded in the Philippines in 1945 and has grown to span the globe with (almost) 200 branches, including outposts in California, Canada and the Middle East.

The company recently shared that it plans on opening three new eateries in San Diego over the course of the next five years. A representative for Max's told Eater that Mira Mesa, Escondido, San Marcos and Chula Vista are currently being scouted for locations with the intent of opening the first store by mid-to-late 2016. The local sites will initially serve Max's core menu, which includes its famous fried chicken and Filipino specialties, while gradually introducing new items.

Originally posted on San Diego Eater.

Burgos Eats: Redefining the metro’s dining culture through shared spaces

With the changing lifestyle of today’s urban Filipinos, everyday dining experiences also become more dynamic and a lot more vibrant.  Nowadays, urban Filipinos prefer a more convenient place where everyone in the group can enjoy total customer satisfaction—from the food they crave for, to being immersed in a more laidback atmosphere where each of them has the opportunity to engage in conversations. 

Understanding the urban Filipinos distinct dining preferences, Max’s Group, Inc. (MGI) is now venturing into the lifestyle hotspot that is Burgos Circle in Bonifacio Global City to introduce its pioneering shared space, multi-format dining concept, Burgos Eats.

“We envision Burgos Eats to become a breath of fresh air in the local casual dining scene and enrich the Filipinos’ dining tradition while catering to the country’s changing food culture,” says Jim T. Fuentebella, MGI’s Executive Director for Marketing. It provides a convenient space for people to get together and share ideas over a variety of good food within the buzzing district of Burgos Circle, a highly urbanized hub in the metro characterized by a community of people leading multi-faceted cosmopolitan lifestyles.

Burgos Eats caters to the modern Filipino food culture by reinventing ordinary dining experiences to make it more fun and a lot more engaging. The overall blueprint of the shared space dining establishment is designed for better interaction between brands and diners to prosper by allowing the space to become the epicenter of leisure and activity.

A fusion of different experiences

Burgos Eats allows MGI—the largest casual dining operator in the country—to go beyond their individual stores and create a venue where a community of diners can interact with each other and some of the company’s loved food brands, such as Yellow Cab, Pancake House, Teriyaki Boy, Krispy Kreme, and Jamba Juice.

As off-mall dining experiences become more popular among various age groups in the country, the company feels that its recent foray into a culinary-lifestyle hub gives it an edge against the rest of the competition.

A sense of diverse flavor, vibe, and interaction welcomes diners as one step into Burgos Eats. Once inside, visitors will find themselves surrounded by the multiple yet distinct characteristics of MGI brands—the vibrant New York mood of Yellow Cab, the friendly Japanese experience of Teriyaki Boy, the joyful sweetness of Krispy Kreme treats, the healthy blends of Jamba Juice, and the warm, homey atmosphere of Pancake House—all under one roof.

An even more interesting feature of Burgos Eats is the freedom and the flexibility that diners can enjoy within the shared space. Wherever they may be in any of the five MGI stores at the venue, customers can order whatever they want from all five restaurants without having to physically move from one store to the next. An example would be ordering a smoothie from Jamba Juice without leaving the table in Pancake House—an innovative approach that gives diners the chance to experience the diversity of dining experiences that MGI offers.

With this blueprint in mind, Burgos Eats transforms one’s ordinary dining expectation to curate a more intimate yet interactive urban dining experience.  With the rich mix of flavors and interaction, Burgos Eats thus becomes an epicenter of leisure and activity that gives its community a momentary escape from the buzz of the busy metro.

MGI brings Max’s Restaurant, other brands to Qatar and the UAE

The flavors that Filipinos have come to love from Max’s Group Inc. (MGI) – the most iconic Filipino food company – is further developing its presence in the Middle East.

Over the years, MGI has been expanding its reach to every corner of the Philippines, bringing well-loved brands and their well-known flavors to every region in the nation. This year, as it celebrates the 70^th anniversary of Max’s Restaurant, MGI’s flagship restaurant brand, the group is taking its aggressive expansion plans further abroad.

While this is not the first time they are expanding overseas as Max’s Restaurant is already operating in several cities in the USA, Canada and the UAE, MGI’s plan to bring this iconic brand to the other parts of the globe shows the kind of confidence and drive the company has acquired over the years. 

MGI, in partnership with Foodmark, a Landmark Group subsidiary and MGI’s official franchisee partner in GCC, brought the “Sarap to the Bones” experience to Al Saad, Qatar by opening the first Max’s Restaurant in the country. This move was welcomed with open arms, particularly by the legions of overseas Filipinos based in the Middle Eastern country. The opening of the Al Saad branch brings Max’s Restaurant’s store network to six in the GCC.

Encouraged by the store’s strong grand opening sales of over $20,000, Foodmark plans on strengthening their expansion efforts by opening one more store each in the UAE and Qatar this year, as well as a couple more in Kuwait and Saudi Arabia next year.

MGI also recently signed development agreements to bring two more of its premier food brands to the UAE.

Tablez Food Company LLC, the F&B division of the highly diversified LuLu Group and MGI’s partner for Pancake House, plans to build at least eight stores in the UAE within the next five years. Pancake House is a homegrown favorite and a pioneer in the pancakes and waffle concept.

Yellow Cab Pizza, a leading player in the local pizza segment, will also be opening its doors soon in the UAE as MGI’s Middle East-based partner Cartoon Fashion Group, aims to build 10 Yellow Cab Pizza stores within the next five years. 

Max’s Group reports P313M net income for 9 Months 2015

Max’s Group, Inc. (MGI) posts net income of P313.12 million for the first nine months of 2015, from a loss of P31.36M for the same period last 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,” stated Robert F. Trota, President and CEO of MGI.

The Company disclosed its nine months earnings on Tuesday, which pertains to the results of operations of Max’s Entities and Pancake House Group from January to September 2015. As of end-September, Max’s Group consolidated revenues rose 170% to P7.30 billion versus reported figures for the same period last year. On a pro-forma basis, topline growth was 6% in spite of delayed openings and planned closures of underperforming stores, which forms part of the Company’s on-going rationalization program. MGI is expected to benefit from a streamlined store network allowing it to maximize returns and resources.

“There were unforeseen delays encountered for with our store openings but nonetheless we are geared to accelerate our pace in the remaining months. We are looking to add around 50-60 new stores by December with full year revenue potential expected to be realized in 2016,” Trota said.

EBITDA increased 90% to P988.74 million for the nine months ended 2015 versus P521.27 million for the same period last year. Excluding non-recurring costs, normalized earnings stood at P339.97 million as of September 2015. “Our EBITDA level reaffirms the strength of our core business as we reinforce our platform for growth,” Trota added.

On support, continuous implementation of category management in the sourcing of raw materials has translated to a 1.7% margin improvement on food costs. Moreover, the initial rollout of an upgraded enterprise resource-planning platform aimed at standardizing systems and processes is likewise underway. This initiative is seen to extract additional synergies and efficiencies from support operations.

Store sales, which comprised bulk of revenues, grew 6% to P6.20 billion from P5.87 billion for the first nine months of 2014. Franchise income went up 41% to P287.05 million as of September 2015 from P204.13 million versus the same period last year. Commissary sales rose 3% to P813.59 million year-on-year.

From July to September, the Company opened 15 restaurants both locally and overseas. Newly launched outlets include Max’s Restaurant in NAIA Terminal 3, UP Town Center and E. Rodriguez Avenue Quezon City, Krispy Kreme in SM Calamba and SM Lipa, Yellow Cab in Sta. Lucia Mall and Kidzania Taguig and Pancake House in Bonifacio Stopover. It also unveiled its 19th Max’s Restaurant overseas located in Al Ghurair, United Arab Emirates. Max’s Group currently operates a network composed of 547 stores.

Reaching out to new territories

“We have signed four development agreements with reputable international partners this year for 15 Yellow Cab stores in Saudi Arabia within 10 years, 10 Yellow Cab and 8 Pancake House restaurants in United Arab Emirates within 5 years and 10 Sizzlin’ Steak outlets in Vietnam within 5 years,” Trota remarked.

Dividend policy

Max’s Group, Inc. announced a dividend policy of at least 20% of prior year’s net income to be settled within a 30-day period from the declaration date of such dividends. “We recognize the need to balance growth and shareholder interest in the long-term,” Trota closed.

Franchising Investments to Soar as Local Players Go Full Blast on PH Food Sector

The Philippine franchising industry, according to Trade Secretary Gregory Domingo, has consistently been one of the strongest performing pillars of the local economy. Over the past few years, the sector has grown by 20%-25% in terms of annual turnover, registering a significant jump from $3 billion to $7 billion. Aside from this, the local franchising sector has also seen its number of workers balloon to almost 5 million in 2012,[1] while also doubling the number of franchises from 600 to about 1,200.

In 2014, local franchise brands—particularly those engaged in the food business—continued to spearhead this phenomenal growth as they accounted for two-thirds of the revenue generated by the sector. The fact is that the food industry remains as one of the most stable economic sectors in the country today and, as such, is a highly attractive investment option. Experts strongly believe that the food industry plays a major role in the Philippines has a consumption-driven economy.  This role, in turn, can be attributed to the Filipinos’ spending habits that put food at the top of the list.

Investors lured by Filipino dining culture

A recent report by the International Enterprise Singapore (IES) revealed that Filipino restaurant diners spend as much as $25 (or about Php1,200) per meal—a clear indication why local food businesses continue to thrive in the country. “Filipinos have a hearty appetite. It is typical for them to eat at least five times a day,” the IES report cited.

Filipino diners are also more inclined to choose restaurants that serve authentic-tasting food and, much like the rest of the world, dishes that are healthy and made from organic ingredients.[2] These developments can be attributed to the growing number of Filipinos who are becoming more adventurous in their lifestyle and yet are still conscious of what they consume.

This consciousness is, in turn, causing more Filipinos to choose locally sourced food and ingredients in order to support the country’s agricultural and food manufacturing industries. This consumer behavior has then moved investors to look into local industries and companies as these are the ones gaining considerable support from consumers.

Although there is no guarantee that any investment is risk-free, the food industry presents the least number of risks due to the nature of what it provides—basic sustenance.  With the kind of dining culture Filipinos are known for, there will never be a lack of people who need and will buy food—something that makes investing in food business, whether through buying stocks or opting to franchise, a highly encouraging endeavor to pursue.

“Franchising also puts high value on strong branding and excellent services and products, which gives franchise brands the better chance of becoming global brands. In fact, many of the internationally renowned brands today are franchises,” says Philippines Franchising Association (PFA) chair emeritus, Samie Lim in a recent interview.

With more investment opportunities and a global market to play at following the ASEAN Integration, it truly makes for an exciting time to be part of the country’s thriving food industry.

The “chain” advantage

While investing in the food sector is attractive, it is a highly competitive industry, especially in retail.   Therefore, selection of a strong player, with strong brands and proven operations is key.  One of the local food companies eyeing to go all-out in the coming years is Max’s Group, Inc. (MGI), a publicly listed restaurant operator considered as one of the most successful casual dining chains in the country.

MGI bolstered its status as one of the biggest and strongest players in the local food sector when it posted a significant jump in net income during the first half of this year. This came on the heels of then Max’s Group of Companies’ acquisition of Pancake House, Inc. in 2014 to become the leading chained full-service restaurant group in the country.

As the country’s largest dining chain, MGI’s planned international expansion for the last quarter of this year and the whole of next year makes it a prime option for investors. Seeing as MGI has over 14 different brands that cater to various tastes—operating iconic food brands like Max’s Restaurant, Max’s Corner Bakery, Pancake House, Yellow Cab, Teriyaki Boy, Dencio’s, Kabisera, Sizzlin’ Steak, Le Coeur de France, Maple, and international foods brands Krispy Kreme and Jamba Juice—the company has the advantage of having a diverse pool of consumers that support each and every brand. At present, MGI is looking to expand five of its 14 brands to the Middle East, Asia, the United States, and Canada, among others, in the next few years—a move that gives investors a chance to expand their respective p