Mad Mex founder Clovis Young has bought back the business, buying out venture partner Singapore-based 4Fingers International.
In 2018 Mad Mex split its ownership 50/50 with 4Fingers International with the aim of fuelling overseas expansion for the casual dining brand.
Despite successful launches in Singapore and Malaysia, the impact of Covid-19 brought about the closure of the two outlets.
It also highlighted the different risk appetites and strategies employed across the regions.
Clovis Young told Inside Franchise Business Executive “We had a good relationship however the key insight through Covid was that each region had a different strategic response that was right for them.
“We saw Covid as an opportunity and our partners were more risk averse. They operate a chicken business in Singapore and the right way to manage the crisis differed.”
The lack of a code of conduct for leasing, no protection for retailers and the complexity of international banking compounded the challenges.
Young hasn’t taken overseas expansion off the table though.
“We’re certainly continuing to build capability and have an interest in expanding outside Australia and New Zealand; it’s horizon two, it’s medium term.”
In New Zealand the short term plan is to keep trading, the medium term goal is to grow from 15 to 20+ stores.
Young is hesitant to give a timescale for this. “We still can’t travel till March. The challenge is no-one from Mad Mex has been in New Zealand in 29 months, it’s very hard for us to get a handle.”
For the domestic market, Young is using 25 per cent store growth per annum as a rule of thumb.
“We see a lot of great opportunities. Mad Mex is the preferred retailer from a shopping centre perspective, Mexican is critical for appealing to a younger demographic.
“Our short term priorities are super regional shopping centres, and high density neighbourhoods. We have a positive view of CBDs but it will be a two year recovery and we need landlords to recognise this.”
Most importantly for the Mad Mex founder, total ownership gives the company the ability to act swiftly to secure the best deals.
“We can act aggressively and quickly, take advantage of great lease deals and prioritise great franchisees.” he said.
