Maxi’s Drives Growth Through Caltex BJs Site Aquisition
Taste Holdings, the holding company of Maxis and Scooters Pizza, today announced that as of 1 of March 2008, Maxis would be taking over certain BJs restaurants around South Africa.
We are extremely excited about the deal, as it is an opportunity to further entrench the brand in the South African consumers mind, says Christo Calitz, Managing Director of Maxis.
The deal encompasses all BJs sites located within Caltex service station forecourts along the national highways of South Africa. Included in this allocation is the Bridge site in Midrand, which will be the first to undergo a complete revamp into the new look Maxis brand identity.
The BJs acquisition certainly supports our strategy of targeting high traffic sites, excuse the pun, catering for breakfast, lunch and early dinner trade. We have been busy with our store revamp project since June last year and to date have already revamped five stores, namely Alberton City, Menlyn, Jakaranda and East Rand Galleria, says Calitz. And of the stores we have revamped, we have already seen a growth of between 16% and 32% in turnover, a figure which certainly says a lot of about our new look. ANother 6 new outlets have been opened in Maxis new store imagery since its launch in June 2007.
The acquisition agreement that Maxis has entered into currently exists between BJs and Caltex, which allows BJs exclusive access to all Caltex highway sites. Maxis will not purchase the BJs brand, but will take over the franchise agreements of the highway sites only. There are currently 8 existing BJs sites which will be converted to Maxis outlets, and a potential to increase this to approximately 13 sites within the Caltex highway network.
Calitz concludes, The transaction is both earnings and margin enhancing for the Maxis brand in that the revenues from the sites accrue immediately to Maxis and have no incremental operating costs within the brand. The sites will also increase the Maxis footprint nationally and distinguish Maxis from all other competitors in its sector. Such access to the highway network will provide Maxis with an added platform for future store growth.
The BJs transaction is unconditional.