Max’s allots P1 billion for 2020 capex

MANILA, Philippines — Max’s Group Inc. (MGI) is setting aside over P1 billion for capital expenditures next year including the construction of a new commissary.

“P1.1 billion is what we plan to spend and most of it is actually going to be used for our commissary,” MGI chief executive officer Robert Trota told reporters during the opening of its multi-brand site in Cubao, Quezon City yesterday.

Next year’s capex is higher than the P900 million earmarked this year.

Located in Carmona in Cavite, the new commissary will support the group’s different brands such as Max’s Restaurant, Yellow Cab, Pancake House, Krispy Kreme, Jamba Juice, and Teriyaki Boy.  It is expected to be completed next year.

“We put up a new commissary in Carmona in order for us to sustain our growth because our current commissaries could not sustain our growth trajectory anymore,” Trota said.

For next year, Trota said the group is committed to open 50 to 70 stores, which would include two to three multi-brand stores.

Currently, the group has 750 stores, of which 43 percent are franchised.

For the location of new multi-brand stores, Trota said the group is looking at sites in Metro Manila as well as in Davao and Cebu.

Through the multi-brand store, the company expects to generate some savings, improve operations through a shared kitchen, as well as better serve customers through a one-stop shop for all its brands.

Trota said the multi-brand store in Cubao has allowed the company to save 40 percent in terms of cost to build.

The group also expects to generate energy savings as the multi-brand site uses solar panels which can fully power 20 households per year.

The multi-brand hub also features flood mitigation technologies and waste management components.

Trota said the group is on track to hit its targets in the next two years.