The Mexican-themed chain Guzman y Gomez has reported bumper revenues since its starting trade with the Australian Stock Exchange but has difficulty expanding in the US despite the offering of Americans larger burritos.
The Fast Food Chain has opened 16 new shops in Australia since July but a push to break into the competitive US market with four shops in Chicago has not been away. Guzman y Gomez reported on Friday that its six -month sale dropped 12.7% to $ 4.9M.
“US sales do not grow as fast as we want … We are building a brand and need time,” founder and co-chief executive officer Steven Marks told investors on Friday.
Marks said he was “excited” about a new store opening near the Northwestern University campus in Chicago.
“We are confident that … US restaurants will reach the target economy. It will only last, as it is done here in Australia,” he said. “Generally, GYG remains confident in the ability to show proof of concept in the US. “
The US has long been a grave for food retailers in Australia due to various tastes, supply chains and components.
Guzman y Gomez’s US Burritos standard weighs 560g compared to 480g in Australia.
Franchise consultant Grant Garraway said Guzman y Gomez will see that the US is “not exactly short on Mexico’s food options”.
“You compete for the best sites, you want the best -owned franchise for your sites and they will struggle to get the same,” he said. “I’m not saying they’ll fail. I’m saying it’s going to be a hard fight.”
Shares to Guzman y Gomez fell sharply on Friday after reporting a half-year-old income but more than 40% since Debuting to ASX mid-2024.
At this time, the company won investors by announcing plans to increase the number of Australian stories from less than 200 to more than 1,000 – a figure selected to compete with McDonald’s – and develop an international network.
Challenges to the US contrast with strong income derived from the Australian business, which interferes with the fast food market by attracting eateries to eat its burritos.
Guzman y Gomez made $ 538m income in Australian stores in six months to 31 December, to
The company, who also has a small number of stores in Singapore and Japan, reports a 23% strengthening of sales throughout its network and a 91% income increase in half-year up to $ 7.3M.
