Corporate News

By Arra B. Francia

Delivery service to drive Max’s growth higher

Posted on May 09, 2017

MAX’S Group, Inc. (MGI) is banking on its new integrated delivery system to help drive growth this year, as it continues with its aggressive expansion program that will see the company hit 1,000 stores by 2020.

“The growth for us on the delivery has been at a phenomenal rate, we’re looking at a 20% to 30% growth,” MGI President and Chief Executive Officer Robert F. Trota told reporters after the annual stockholders’ meeting in Quezon City on Monday.

MGI posted a 24% increase in delivery sales to P1.08 billion in 2016, which represent 9% of the company’s total revenues of P11.52 billion. This helped push the company’s net income 12% higher to P561.7 million last year.

The company now has a unified delivery system for all of its brands, including Max’s Restaurant, Yellow Cab Pizza, Pancake House, Krispy Kreme, and Teriyaki Boy. The MGI Corporate Communications Center has at least 150 agents who handle hot line and online delivery orders across the group’s brands.

“The app and online is a growing segment, so I don’t need seats anymore for me to grow the business with the same projection. We’re very happy, very excited. I just need to commit to the delivery, to get it on time, the right product at the right time and at the right temperature,” Mr. Trota said.

MGI also set up a multi-brand logistics team with 60 new delivery bikes and riders, on top of around 500 existing units.

“This means that this rider will deliver for Yellow Cab, for Max’s, for Pancake, or Teriyaki. This will help us maximize our resources,” Mr. Trota said.

This year, MGI seeks to roll out 60 to 70 new stores across different brands locally and abroad. It has allotted between P600 million and P700 million to fund the store expansion.

Mr. Trota said this keeps the company on track to meet its goal of having 1,000 stores, include 200 abroad, by 2020.

“We continue to be positive in terms of the economic situation of the Philippines... The initial plan is as many as 60 to 70 new stores because we feel there’s enough room for us to expand in this country,” MGI Chief Finance Officer Dave T. Fuentebella said.

Mr. Fuentebella said the company will focus on expanding the Yellow Cab business, as pizza is a mainstream menu.

“But it doesn’t mean that Max’s, Pancake House will not expand. It really depends on the location and the area,” Mr. Fuentebella said.

So far this year. MGI has already sealed deals to open Yellow Cab stores in Brunei, East Malaysia and Vietnam.

In March, MGI inked a development agreement with YTT Sdn Bhd to open at least 10 Yellow Cab outlets in Brunei and East Malaysia within the next five years. In February, MGI said it signed a similar deal with Blue Star Food Corp. to establish at least 12 Yellow Cab stores in Vietnam within a five-year period.

Mr. Trota said the company continues to work on deals to set up franchise outlets of its brands abroad.

Asked if they plan to enter new territories, Mr. Trota said they hope to enter the European market “soon.”

“The clamor for Europe is there, hopefully we can get there pretty soon. We need to focus on the current territories that we are in, for us not to saturate the resources that we have,” the MGI executive said.

Mr. Trota added that once they enter the market, they would need to put up more than one outlet.

“Once you’re in a territory like that, you have to open several stores, because for you to service it, it doesn’t make sense to just open one outlet in the area.”

MGI opened 77 new stores, including 16 abroad, to close 2016 with a total of 623 outlets globally.