Taste Holdings, the holding company of Maxi’s and Scooters Pizza, today announced that as of 1 of March 2008, Maxi’s would be taking over certain BJ’s 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 Maxi’s.
The deal encompasses all BJ’s 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 Maxi’s brand identity.
“The BJ’s 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 Maxi’s new store imagery since its launch in June 2007.
The acquisition agreement that Maxi’s has entered into currently exists between BJ’s and Caltex, which allows BJ’s exclusive access to all Caltex highway sites. Maxi’s will not purchase the BJ’s brand, but will take over the franchise agreements of the highway sites only. There are currently 8 existing BJ’s sites which will be converted to Maxi’s 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 Maxi’s brand in that the revenues from the sites accrue immediately to Maxi’s and have no incremental operating costs within the brand. The sites will also increase the Maxi’s footprint nationally and distinguish Maxi’s from all other competitors in its sector. Such access to the highway network will provide Maxi’s with an added platform for future store growth.”
The BJ’s transaction is unconditional.