HOMEGROWN casual dining restaurant chain Max’s Group Inc. (MGI) said the company has remained resilient, with positive international business results amid the impacts of a global pandemic that has rocked the retail dining industry worldwide.
Its steady performance and increased expansion overseas saw a net income expansion throughout 2020 and, with the exception of last year, annual double-digit revenue growth since 2003, when it started international franchising.
The group is an exporter of established Filipino restaurant brands, bringing the local food scene closer to diners the world over—from the flagship Max’s Restaurant to Pancake House, Yellow Cab Pizza Co., Teriyaki Boy, Sizzlin’ Steak, and Max’s All About Chicken.
To date, MGI International has a total of 60 stores operating across North America, the Middle East, and Asia Pacific (AsPac) regions. Despite the unprecedented health crisis, six new stores have opened since 2020, with a couple more lined up later this year.
“The geographical diversity of the markets helped us mitigate the risks of the pandemic and balance the business between regions so we could remain consistently profitable. Our partners also showed tremendous resilience in keeping business afloat and our lean international team structure enabled us to adapt quickly in managing costs in proportion to revenue, ensuring that we could weather the storm and give our franchisees the support they deserve,” MGI International Director William E. Rodgers said of their improved performance despite the pandemic.
The group also attributed this to each country’s Covid-19 response and how its franchisees worked quickly to meet the needs and demands of customers at the height of the crisis and as each area went through its own lockdown and regulations.
MGI International strategically chose to expand through master franchising, working with strong local partners who have a firm understanding of the market. This was especially essential when dealing with the global pandemic’s uncertainties.
For instance, delivery was pivotal for the AsPac market to become the best performing region for MGI, posting a double-digit growth in 2020 versus 2019. In the Middle East, the group tied up with a local service provider to streamline orders via social media and utilize marketing tools to assist in customer retention.
In North America, diners had a preference for take-away options. However, when dine-in was suspended during the peak of the pandemic in the United States, Max’s Restaurant franchises in Glendale, Chula Vista, and San Diego in California immediately pivoted by offering an outdoor patio setup that contributed significantly to total sales. The Glendale store, likewise, introduced a food truck concept to widen its reach, particularly in local communities.
“Customer behaviors differ in each country and region, requiring an intimate understanding of their unique nuances. Having that on-ground insight derived from partnering with local operators augmented by MGI’s aggregated expertise in operating multiple markets and managing global brands makes for a recipe of success,” noted MGI International General Manager Kyungmin Lee.
Despite the uncertainty as to when this crisis will end, Rodgers pointed out that all markets in MGI’s current portfolio are promising in terms of future growth and the company has set its sights on other major cities in North America and many untapped countries in both AsPac and Europe.
“We have not yet harnessed their full business potential. The focus remains on our existing franchise operators and helping each partner expand their store network through strong supply chain, operations, and marketing support,” he said.
“We embrace how Filipino culture is among the most global in the world. Even as we proudly import such iconic international franchises as Krispy Kreme and Jamba Juice, we are equally delighted by the opportunity to make our uniquely Filipino brand of hospitality and taste equally famous across different markets,” added MGI President and Chief Executive Officer Robert Ramon F. Trota.