Max’s Group Inc. (MGI) is setting a higher capital expenditure in 2020 as it eyes to sustain its “low double-digit” growth.
Robert Trota, MGI president and chief executive officer, told reporters at the launch yesterday of its multi-brand site in Quezon City, the company will spend P1.1 billion in 2020 mostly for the construction of a commissary, higher than the P900 million capex this year.
Trota said MGI is on track of hitting its revenue targets system-wide.
It also aims to grow the share of its franchised stores to 60 percent by 2022 from the current 43 percent.
Trota said MGI is committed to yield 50 to 70 more stores across all brands annually but its latest venture will enable the group to expand faster.
MGI hopes to build up to six more multi-brand hubs which house under one roof its portfolio of casual dining restaurants Max’s Restaurant, Yellow Cab, Pancake House, Krispy Kreme, Jamba Juice, and Teriyaki Boy,
Trota said the company will build two to three stand-alone hubs and will convert existing two to three locations.
Trota said this business model also enables MGI to save 40 percent of the cost of constructing a store as the hub consolidates into one kitchen all of its five brands. Labor and utilities costs are also reduced.
Sites being considered are Marcos highway, Cebu and Davao.
MGI opened yesterday the first hub located on Main avenue corner EDSA.
With a total area size of 1,445 sqm. and maximum seating capacity of 281, the site was mindfully designed and engineered to save energy and mitigate flood, especially considering the Philippines’ vulnerability to such natural disasters as typhoons. Solar panels spread throughout the compound’s roofs will contribute to the overall reduction of carbon footprint, partnered with high-efficiency LED lighting.