Mad Mex on the market as expansion targeted
Popular fast-food franchise Mad Mex Fresh Mexican Grill is searching for investors to bolster the brand’s proposed domestic and international expansion.
The franchise was put on the market through Allunga Advisory with the goal of boosting expansion in the competitive Australian landscape.
Originally founded in Darlinghurst in 2007, Mad Mex has become a staple in the domestic food court and casual dining scene, operating over 60 stores in Australia and New Zealand, with the brand targeting partnerships with equity investors as core to the its growth strategy.
Earlier this year, fellow Mexican franchise Guzman Y Gomez (GYG) announced a partnership with private equity firm TDM Growth Partners that promised to see the brand boost stores in Australia before launching international expansion.
The $44 million landmark deal strengthened the brand’s domestic footprint, providing GYG with a much-needed equity-injection to fuel franchise growth.
At present, the chain restaurant industry produces $327 million in annual revenue in Australia, with the Mexican sector providing a key pillar to the industry’s success.
Market share however, seems limited, with the latest IBISWorld report indicating that annual growth from 2014-2019 has seen a downward trend.
Mad Mex’s decision to work alongside Allunga Advisory in order to facilitate the expansion follows a familiar pattern for franchise brands.
In August, franchise SumoSalad entered into discussions with Allunga regarding a potential sale or change of control.
The deal saw SumoSalad founder Luke Baylis eager to raise external capital to fund the brand’s growth strategy, however resulted in a move to voluntary administration.
Inside Franchise Business reported last week that Baylis had regained control of the embattled franchise, vowing to restore operations and improve franchisee success.
More to come.