Homegrown food chain Max’s Restaurant is set to further expand its business overseas as it plans to open new branches in the United States, Canada, Qatar and Kuwait.
Max’s president Robert F. Trota said the the company would invest $1.2 million, or about P51.6 million, in putting up a branch in Las Vegas. This branch, which will occupy a 515-square-meter property, is scheduled to open in the first week of September.
In the meantime, construction of a branch in Alberta, Canada, is underway and is expected to be completed for commercial operations before the end of the year.
The setting up and opening of the planned branches in Qatar and Kuwait would, however, depend on the signing of the lease agreement which, according to Trota, was targeted for this year.
The cost of putting up the overseas branches would range from $600,000 to $1.2 million, depending on the size.
Trota also said Max’s Restaurant was considering expanding in certain Asian countries including Thailand, Indonesia and Singapore.
Trota said the so-called “TIPS,” which stands for the Thailand-Indonesia-Philippines-Singapore bloc, was considered the new investment destination by many foreign firms. He noted that the BRIC (Brazil-Russia-India-China) strategy might have already become an “expensive” option especially for those who were just starting to expand globally.
“There’s a better chance of breakthrough in the (TIPS) market,” he added.
The key to a successful expansion, according to Trota, is to find the right franchisee, a local in the targeted investment country, who knows what he is doing and understands the laws, culture and the market.
“It is difficult to find the right franchise partners, sometimes it’s long-term. If usually takes us one to three years, “Trota said.
Max’s at present has 13 branches overseas. Of these, eight are located at the United States, three in the Middle East and two in Canada.
In the Philippines, Max’s is planning to open six to eight new branches this year, mostly in the provinces.
Trota said the company’s expansion in the domestic market was driven by the opening of new malls in the provinces. Each branch may cost about P12 million to P18 million, depending on the size of the outlet.
Max’s has 135 branches in the country.
The Max’s group also owns the Philippine master franchise of Krispy Kreme.
It is targeting to open six to eight new Krispy Kreme outlets this year. Krispy Krema currently has 42 stores, of which three are in Cebu, another three in Mindanao and the rest in various parts of Luzon.
Trota noted that the entry of new competitors (doughnut stores) “did not hurt the company much.”