Yellow Cab eyes bigger slice of China market
Leading casual dining operator Max?s Group Inc. is ready to grab a bigger slice of the booming pizza market in China.
Max?s Group recently inked an agreement with Changsha New Yorker Catering Management Co. Ltd. to build at least 10 Yellow Cab Pizza stores in Hunan province over the next five years.
This is in addition to the earlier deal entered into with the Zhongfa Group, which marked Max?s Group?s maiden venture in China.
The transaction involved the construction of at least 15 Yellow Cab branches in Beijing, Tianjin, and parts of Hebei province.
?This is the second franchise contract secured in China within the span of a few months.
The strong interest in Yellow Cab Pizza reinforces our vision of growing the brand successfully all over the Chinese region,? said Max?s Group president and CEO Robert F. Trota.
Trota said the deal also marks the third development agreement inked by the Max?s Group for the year, bringing its total international pipeline to 111 stores slated to open in the coming years.
The company?s goal is to open a total of 200 outlets overseas by 2020.
Yellow Cab currently operates a network of 135 branches including six franchised outlets located in Qatar and 1 in the United Arab Emirates.
Based on a food service profile done by Agriculture and Agri-Food Canada, pizza stores in China are growing faster than other restaurants in terms of average sales per outlet or average sales per transaction mainly due to the increasing preference for Italian food among Chinese consumers.
China?s pizza consumer food is expected to post a compound annual growth rate of 16.2 percent from 2014 to 2018.