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Panelists for the ASM 2017, left to right: Jim T. Fuentebella (Director and Chief Marketing Officer), Carolyn Trota-Salud (Director), Rebecca R. Arago (Treasurer and Corporate Information Officer), Dave T. Fuentebella (Director and Chief Finance Officer), Robert F. Trota (President and Chief Executive Officer), Sharon T. Fuentebella (Chairperson), Atty Gemma M. Santos (Corporate Secretary), William E. Rodgers (Director), Cristina T. Garcia (Director)
Max’s Group, Inc. (MGI) strengthened its presence when it brought all the brands under one unified and integrated delivery system. The initiative is a testament to how improved operational efficiencies translate to better results for multiple brands under the platform.
With Max’s Restaurant, Yellow Cab Pizza, Pancake House, Krispy Kreme, and Teriyaki Boy operating under a singular delivery system, a more convenient and seamless customer experience is put in focus. Coupled with specific brand initiatives such as delivery mobile apps and rewards programs, customers can expect a more delightful experience every time they order from their loved brands under MGI.
As hotline and online delivery orders are all received at the MGI Corporate Communications Center, at least 150 agents facilitate the transactions for the network. MGI also set up a multi-brand logistics team with 60 new delivery bikes and riders on top of the existing brand delivery teams to ensure timely fulfillment of orders across all brands.
This move to strengthen MGI’s delivery capability proved to be effective as delivery sales posted a 24% year-on-year sales growth in 2016, translating to Php 1.08 billion or 9% of the Company’s revenues.
On the international front, MGI is not slowing down in expanding its store network. 2016 saw seven area development agreements signed and 16 new overseas locations opened, with 141 more international locations in the pipeline. As MGI ended the year with 623 stores to its network, 49 of which are located in North America, Middle East, and Asia, the Company moves even closer to realizing its goal of 1,000 stores by 2020, 200 of which are overseas.
MGI posted a net income of P561.7 million in 2016, up by 12% from P501.4 million in 2015. The double-digit growth was also reflected in the Company’s revenues with an increase of 10% to P11.4 billion from P10.4 billion the previous year. Restaurant sales increased 10% to P9.4 billion from P 8.6 billion for the same period last year. Furthermore, cost of sales improved to 72.2% as opposed to 72.6% for 2015. Revenues from franchise, royalty and continuing license fees rose 54% to P766.7 million compared to P497.5 million for 2015. Lastly, system-wide sales grew 12% to P15.3 billion from P13.7 billion in 2015.
During the 2016 Annual Stockholders’ Meeting at Scout Tuason, Robert F. Trota, President and CEO of Max’s Group, Inc. summarized the Company’s performance as, “The results underpin our bold transition from a period of integration and turnaround to an active phase of growth. We have successfully redefined our business, one that is value-oriented and adaptable to an increasingly competitive environment.”
