Franchisees’ bright idea sparks change to GYG’s strategy

Sarah Stowe

Mark Hawthorne, CEO at Guzman Y Gomez, believes in franchisees as co-creators of a franchise brandFranchising is about a lot more than chasing franchisee money and equity.

That’s the belief of Mark Hawthorne, CEO of Guzman Y Gomez.

Speaking to FranchiseBusiness about the planned expansion of the Mexican fast food model, Hawthorne says “There’s a lot more to franchising than chasing money and equity. That’s really a narrow minded approach that can lead to decisions that can compromise the brand.”

Hawthorne sees franchisee involvement as key to the development of the business.

“It’s very nice to access the equity, but we want to bring in people who can execute the business better than we can. Franchising is an enabler to better execution.

“There is really good thinking among franchisees and we can capture that entrepreneurial spirit.”

GYG’s first drive-through outlet in Nerang, Queensland, is a prime example. The concept was generated not by the corporate business but by existing Gold Coast franchisees that saw an opportunity to convert a Pie Face site into a GYG drive-through.

“We put a bet on the franchisees, allowed them to test and have a shot at it. We saw how it could change GYG’s model and, in my mind, possibly double the number of units across Australia.

“As CEO my role is to create forums for them to be heard, for their ideas to be tabled, backed up by governance, and to test ideas, so they are contributing to the brand.”

With 73 outlets the GYG business is small enough to embrace this. “We can still act like a nimble family business,” says Hawthorne.

“It’s about the company culture and the guest experience. Franchisees are co-creators of the future of the brand.”