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. #

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. #

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.” # 

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. #

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.” #

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. #

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.

#####

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.

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.

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. 

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 portfolios in the global arena. 

“It is true that the franchisor-franchisee relationship requires a special kind of commitment between the two parties, and one way to ensure commitment is choosing the right franchisee,” says MGI President, Robert F. Trota in a recent interview. “We have to bear in mind that franchising is often likened to marriage, which stresses the need for shared values and a common vision between the husband and wife to make the marriage work. This means that a franchisor needs to have a franchisee that shares the values and vision of the franchisor’s brand.”

With more than 70 years of experience in the food industry, a strong franchise portfolio consisting of over 500 outlets nationwide and 35 stores overseas, MGI has certainly strengthened its case as a strong contender in the Philippine investment market. 

Pancake House to open in UAE

MANILA – Max’s Group, Inc. (MGI) continues to aggressively expand its presence in the global scene. Pancake House, a homegrown favorite and pioneer in the pancakes and waffle concept, is set to make its initial foray into UAE.

MGI recently inked a development agreement with Lulu Group to build at least 8 Pancake House stores in UAE within the next five years.

“We are pleased with the opportunity to further broaden our reach in the UAE this time around for Pancake House. We are excited with our partnership with Lulu Group, an established retailer with a storied and rich history of success, to serve our products to the Emiratis,” said Max’s Group President and CEO, Robert F. Trota.

“We are also encouraged that our international campaign has received strong interest from a number of potential foreign partners. This can be attributed to the strength of our diverse portfolio of brands catering to various markets and tastes, anchored on a solid and well-organized MGI support system,” Mr. Trota stated.

This marks the fourth development agreement signed by MGI for 2015. The company plans to have at least 200 international outlets by 2020 across its brands.

“For this year, we were initially aiming at closing at least two territories. With this, we were able to exceed our targets,” Mr. Trota added.

Established in 1996, Lulu Group is a highly diversified group based in UAE engaged in the businesses of retail, imports, exports, trading, shipping, information technology, tourism and education, with operations spanning across 21 countries. Its latest venture into food and beverage, through Tablez Food Company, has created its own portfolio of restaurants, cafes and ice cream stores coupled with international franchised brands in the Middle East and India.

"We at Tablez have always believed in bringing in unique brands from around the world in the evolving and highly competitive food and beverage sector in the gulf region. I am absolutely delighted in partnering with Pancake House, one of the most popular brands from the Philippines. I am also excited about the fact that UAE and the gulf region is home to a large Filipino community and a brand like Pancake House will be a big hit and also gives us a chance to present this brand to other diverse nationalities residing here," remarked Tablez Food Company CEO Shafeena Yusuff Ali.

Pancake House currently operates a network of 123 branches including nine franchised outlets located in Malaysia and Brunei.

Max’s Group, Inc. wins big at the 2015 Franchise Excellence Awards

Max’s Group Inc. (MGI) further cemented its status as one of the most bankable franchises in the Philippines when it bagged four major awards at the 2015 Franchise Excellence Awards—a platform that recognizes the country’s best-managed companies in the franchising business held recently at the Manila Marriott Grand Ballroom.

Max’s Restaurant—the flagship company under  MGI—received the PricewaterhouseCoopers (PwC) Iconic Filipino Franchise award, as well as The President’s Award (Food: Large Store Category Hall of Fame)—the highest recognition awarded to local franchise companies that have become benchmarks in overseas expansion. A Max’s Restaurant franchisee from Bataan, Ms. Michelle Alonto, also became the recipient of the National Franchisee Award, a recognition given to successful and excellent franchisees who made key contributions to the local franchise system and to society.

Krispy Kreme, MGI’s international doughnut franchise, was also awarded the International Master Franchise (Food: Large Store Category) for solidifying its status as a benchmark in international franchise operations. MGI brands’ wins at the 2015 FEA further strengthen the company’s reputable standing as a major player in the local food industry.

On-hand to receive the PwC award for Max’s Restaurant were (third from left) Max’s Group Inc. (MGI) CFO and Director Dave T. Fuentebella; (fourth from left) MGI President and CEO Robert F. Trota; (fifth from left) MGI Chairperson and Director Sharon T. Fuentebella; and, (sixth from left) MGI Director Jimmy F. Trota. Joining the MGI principals in the photo are (L-R): DTI Undersecretary Zenaida Maglaya; Isla Lipana and Company Chairman Atty. Alex Cabrera, PCCI Honorary Chairman Sergio Ortiz-Luis; and Philippine Franchise Association (PFA) Vice Chairperson Bing Sibal-Limjoco.

Sizzlin’ Steak to Enter Vietnam

Max’s Group, Inc. (MGI) is poised to take another one of its brands to the international scene. Sizzlin’ Steak, a homegrown brand serving premium quality meals on a hot plate system, is set to make its maiden entry into Vietnam.

MGI recently signed a development agreement with L Concepts Limited (L Concepts) to build a minimum of 10 Sizzlin’ Steak stores in Vietnam within the next five years.

“We are thrilled in this partnership with L Concepts given their strong credentials and long history of success. We are excited to introduce our sizzling offerings to the Vietnamese market,” said Max’s Group President and CEO, Robert F. Trota.

“Our overseas expansion continues to gain more ground. We envision to rollout our key brands outside the Philippines with strategic franchise operators. As new markets are established and momentum builds in the next few years, we expect the international portion of our business to be a significant contributor to system-wide sales and to our bottom line,” Mr Trota added. 

L Concepts is an emerging food and beverage player that focuses on the development of unique gastronomic experiences in Southeast Asia.  The group currently operates a collection of leading restaurant brands, franchises and lifestyle concepts across the premium casual and fast casual dining segments. L Concepts is a wholly owned subsidiary of The Longfort Group.

“We are honored to partner with MGI and look forward to bringing the Sizzlin’ Steak experience to Vietnam to bring the best possible customer experience to Vietnamese consumers,” said Mr TW Pang, Chief Executive Officer of The Longfort Group. “We believe that Vietnam’s increasingly discerning consumer is in need of high quality F&B products and services at affordable prices and that Vietnam offers tremendous growth opportunities for those aiming to capture this space.”

This marks the third development agreement inked by MGI for 2015. Previous signings include 15 Yellow Cab restaurants within ten years in Saudi Arabia as well as another 10 Yellow Cab branches within five years in United Arab Emirates. The company expects to further augment its vast store network by at least 200 outlets from the international front by 2020.

Sizzlin’ Steak currently operates 10 branches in Metro Manila. Plans are likewise underway to establish a pilot store in the United States.

Max’s Group Continues Expansion Across the Philippines and in the Middle East

MANILA – Max’s Group, Inc. (MGI) has gained headway in its expansion program with the opening of 18 new stores across the Philippines at the close of the second quarter of 2015.

Max’s Restaurant, the group’s flagship brand, led the expansion with the opening of six stores, followed by Pancake House with three, Krispy Kreme with three and Jamba Juice with one.

On the international front, MGI opened three international outlets. The company opened its 14th Max's Restaurant in North America located in Daly City, California. It also unveiled a new Pancake House in Damansara Jaya, Kuala Lumpur, bringing its total to eight stores in Malaysia.

MGI also recently signed a development agreement with Middle East-based Cartoon Fashion Group to build 10 Yellow Cab Pizza stores in the United Arab Emirates (UAE) within the next five years, and with the Zaid Alhussain & Brothers Group of Companies to open 15 branches in the Kingdom of Saudi Arabia within the next 10 years. 

“We remain on track with our expansion plans both domestically and overseas. Most of our new store rollouts traditionally occur in the latter part of the year," shares Robert F. Trota, President and CEO of MGI.

As of June, Max’s Group has a total of 532 outlets. It plans to accelerate its store rollout pace in the second half of the year primarily across its winning brands in time for scheduled mall openings and the Christmas season. #

Krispy Kreme Celebrates 78th Anniversary with Sweet Treats

Global brand Krispy Kreme, known for its premium and delectable doughnuts, celebrated its 78th anniversary last July with a one-of-a-kind birthday surprise for its customers. 

Krispy Kreme fans who downloaded and registered in the Krispy Kreme Mobile Application, or presented the 78th Birthday Celebration voucher from Krispy Kreme’s official Facebook, Instagram and Twitter pages enjoyed a box of six of its mouthwatering and world-famous Original Glazed doughnuts for only Php 78. 

The brand that gives "Joy in a Box" also launched its limited edition birthday doughnuts - Birthday Cake Batter with fun rainbow sprinkles, and Brownie Batter with rich chocolate ganache and chocolate chips.

“For the past 78 years, Krispy Kreme has shared in the fun and unforgettable memories of its customers, witnessing and taking part in countless smiles, conversations and celebrations. This birthday treat is our way of thanking everyone for being part of Krispy Kreme’s wonderful story of delighting people,” said Ariane M. Valinton, Marketing Manager for Krispy Kreme Philippines. 

Visit www.krispykreme.com.ph or @KrispyKremePH on Facebook, Instagram and Twitter to learn more about the latest delectable treats.

Max's Launches #ChickenLove for Its 70th Anniversary with the Return of Chicken-All-You-Can

One of the most loved Filipino brands celebrates 70 years of dishing out #ChickenLove with the comeback of its most memorable, popular and delightful promo. The long wait is finally over because Max's CHICKEN-ALL-YOU-CAN is back!

Max's Group Inc.'s Marketing Director, Mark Gamboa, said "Our Chicken-All-You-Can promo has always been such a success story for Max's. You will not believe the clamor we get yearly and the feedback has been tremendously positive.  Now, 2015 is a milestone year for us since we're celebrating our 70th Anniversary and we felt the timing was perfect to bring it back.  This is just one of the many ways we want to show how thankful we are to all the people who have made Max's part of their lives."

Chicken-All-You-Can officially jumpstarts Max's 70th Anniversary celebrations and we can expect a lot of exciting treats from ‘The House that Fried Chicken Built.’  From its humble beginnings in the 1940s to a world-class family restaurant serving great Filipino comfort food steeped in tradition, Max’s Restaurant has secured its place in every Filipino’s heart.

Reaching out via social media, Max’s conducted a poll where people were asked their preferred day for this ‘Sarap-to-the-Bones’ promotion. The millennials and netizens, who have given their full-fledged support since the first Chicken-All-You-Can, have spoken and voted to end the week right and get their Chicken Love fix every Friday from 6-10 PM on July 17, 24, 31, and August 7 and 14. This is available nationwide in all Max’s Restaurants. For only 229 pesos, customers can have their fill of Max’s famous fried chicken with one glass of any Pepsi product.

Call your family and friends and head on over to your nearest Max’s Restaurant every Friday and get a taste of what Chicken Love is all about!  Be sure to stay tuned to the official social media accounts of Max’s Restaurant on Facebook www.facebook.com/maxsrestaurant or on Twitter @maxsrestaurant for more updates.  #

Yellow Cab is Voted Best Tasting Pizza Online

Max’s Group, Inc. Makes Waves Online

Yellow Cab Boracay Tops Tourist Choice Awards

Max’s Restaurant Gets Positive Reviews in Canadian Online Journals

The Heart of Building Loved Brands: Max’s Group Inc. Rebuilds Lives Through Project HOPE

Max’s Chef Tobal Features Lumpiang Ubod in Las Vegas ‘Flavors of the Heart’ Event

MGI - We Build Loved Brands

MGI at Franchise Asia 2015

Burgos Eats Launch

The Little Things