Business Review

Restaurants

The global pandemic has caused a significant reduction in customer visits to Maxim’s restaurants, as well as leading to some temporary closures and adjusted operating hours. Whilst trading conditions were challenging, Maxim’s remains committed to pursuing its multi-brand strategy.
Group Sales *
7%
Group Profit †
7%
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.

Singapore Malaysia Cambodia Thailand Mainland China Hong Kong Macau Vietnam Restaurants
US$
2.1 billion
Total Sales ‡
US$
36 million
Share of Results
1,741 stores
Store Network ‡
‡ Including 100% of associates and joint ventures.

Restaurants

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.

The global pandemic, which has led to government-imposed restrictions on movement and social distancing measures, has caused a significant reduction in customer visits to Maxim’s restaurants, as well as leading to some temporary closures and adjusted operating hours. Maxim’s reported sales of US$2.1 billion in 2020, a 24% reduction compared to the prior year.

Weak sales performance led to a significant reduction in profitability, with Dairy Farm’s share of Maxim’s profits reducing by US$46 million to US$36 million. Maxim’s profitability was supported by strong cost control, reduced rental expenses and government support in the year.

Maxim’s mooncake sales during Mid-Autumn Festival were encouraging.

Whilst trading conditions were challenging, Maxim’s remains committed to pursuing its multi-brand strategy. During the year, Maxim’s announced that it had expanded its partnership with Shake Shack across China. The first Beijing store opened in the third quarter and there are plans to open more stores in South China including locations in Shenzhen, Guangzhou, Fuzhou and Xiamen. Maxim’s has also secured the Starbucks franchise in Laos, with the first store planned to be opened in 2021. Maxim’s has now secured the Starbucks franchise in seven markets.

Maxim’s remains committed towards pursuing its multi-brand strategy.