Restaurants | Dairy Farm Annual Report 2019

Maxim’s reported 4% growth in sales to US$2.7 billion. The acquisition of the Starbucks franchise in Thailand through a 64%-owned joint venture was another milestone in the year. A portfolio of some 370 retail outlets was acquired as part of the deal. After this acquisition, Maxim’s has now secured the Starbucks franchise in six markets.

Founded in 1956, Maxim’s is a household name in Hong Kong, famous for its mooncakes and successful restaurants, bakeries, cafes and catering. The Maxim’s network has expanded across Asia Pacific, with over 1,700 outlets in Hong Kong, Macau, mainland China, Vietnam, Cambodia, Thailand, Singapore and Malaysia.

9% of group sales came from Restaurants

14% of group profit came from Restaurants

Restaurants

* Including share of associates and joint ventures.

† Based on operating profit before effect of adopting IFRS 16 and share of results of associates and joint ventures, excluding selling, general and administrative expenses and non-trading items.

Restaurants

2.7

billion

Total Sales^‡ (US$)

million

Share of Result (US$)

1,753

stores

Store Network^‡

‡ Including 100% of associates and joint ventures.

Maxim’s reported 4% growth in sales to US$2.7 billion. The acquisition of Starbucks franchise in Thailand through a 64%-owned joint venture in May supported sales growth for the year. A portfolio of some 370 retail outlets was acquired as part of the deal. After this acquisition, Maxim’s has now secured the Starbucks franchise in six markets.

Profitability, however, was impacted significantly by the social unrest in Hong Kong, with disruptions caused to restaurants and shops, as well as reduction in foot traffic. Mooncake sales performance did continue to grow in 2019.

It was another successful year for the introduction of new concepts, with expansion of the Shake Shack franchise into China. Shake Shack is expected to expand into Macau in 2020. Maxim’s also launched The Cheesecake Factory in Macau in 2019, with one opening in the heart of the Cotai area.

In addition to the Starbucks Thailand acquisition, Maxim’s continues to diversify its business in Southeast Asia, as well as growing its Starbucks business in the region. The Genki Sushi franchise is also being expanded in Thailand, Singapore and Malaysia.

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