When Mark Hawthorne stepped down from his role as CEO of McDonald’s UK in 2014 — after working with the fast food chain in some capacity since the age of 15 — he thought he was done with the food sector. But then he saw the “holy grail”: a company that was delivering great food, served quickly, and he just knew he couldn’t let the opportunity slide.
“I’d been working overseas in New Zealand, Singapore and the UK for 9 years and decided I wanted to come home,” tells Mark. “Once back in Australia, I was introduced to one of the founders of Guzman y Gomez (GYG), Steven Marks. He’s an energetic character who is very passionate about his food. I’d seen plenty of people who were passionate about their products and brands before, but I decided to go down to one of the GYG stores to see what he was talking about and trial the food myself.”
As soon as he set foot in the casual dining restaurant, Mark recalls, he was “genuinely shocked”. First, it was an authentic Mexican taqueria-style eatery. It had a great look and feel, and helpful staff. Second, he couldn’t believe how quickly the food came out after ordering.
“In a world where you rarely see great food done fast, it was very impressive,” Mark notes. “I hadn’t seen anything like it before. I felt it was something that didn’t exist anywhere else in the marketplace. I wanted to be a part of it.” Mark was subsequently appointed CEO in May 2015 and has been enjoying the journey ever since.
The Fix Fast Food movement
One initiative he’s particularly proud to be supporting is the Fix Fast Food movement, which is all about flipping fast food as we know it on its head. GYG is dedicated to serving up ingredients of the highest quality, and never taking short cuts because it might be cheaper or more convenient.
“I’d recommend anyone to check out fixfastfood.com.au, a movement we started to encourage fast food players to pick up their game. We want outlets to act in a manner that’s responsible, clean and nutritious. We’re very clear about what our position in the marketplace is: fast food that’s fresh, healthy, delicious and cooked on proper kitchen equipment, not in microwaves. People tend to think quite badly about fast food and we want to change that.
“Pure sales of fast food remain the quickest-growing food segment in Australia, despite most people not really liking what they get served and knowing that it’s not good for them. I think it’s a very positive line for GYG. For us, it’s about proving that fast food doesn’t need to be bad. We can make it good. That clarity was important for me as CEO: we have to continue to give great food and also concentrate on giving a greater level of convenience to our customers.”
“People tend to think quite badly about fast food and we want to change that.” – Mark Hawthorne
Philanthropic foundations
GYG is certainly leading by example in this self-initiated Fix Fast Food movement. It recently launched free-range chicken in all of its taquerias, a bold move considering that the protein is its biggest seller on the menu. “That was an investment we made worth more than $1 million annually across our systems and franchises,” Mark notes. Then there’s the move towards sow stall-free pork, and 100% grass-fed and hormone-free beef and steak. “There are lots of things we’re doing around nutritional food, clean food, and animal welfare, which is very important. It’s an exciting time for us and a clear demonstration that we’re a strong player in a fast-food market that’s dominated by a small number of large brands.”
And the customers seem to be loving it. A CREST survey on eating trends showed that GYG was the fastest-growing fast-food brand in Australia, while Roy Morgan Research revealed that it had the highest consumer satisfaction levels out of all of the brands in the sector, at 92 %.
Part of the popularity might also come down to the fact that GYG was built on philanthropic foundations. “Steven and fellow co-founder Robert Hazan have been supporting Misión México for many years,” Mark says, “and they’re extremely passionate about it. It’s a children’s refuge run by an Australian couple, Pamela and Alan Skuse, in Tapachula, Mexico. They care for about 50 children a year, and there are some pretty rough stories that come from these abused kids in that part of the world. I think customers want companies today to be philanthropic; they want companies that genuinely care, and they want to see them doing good things. GYG is a fantastic example of that.”
Taquerias take-off
GYG has been operating for more than 10 years. Its story began in October 2006 when Steven and Robert opened their first taqueria in Newtown, Sydney. From there, the business quickly gained popularity and new stores started to pop up all over the country. Today the business boasts 79 taquerias, 14 owned by GYG, the rest owned by franchisees. Mark admits he’s a big fan of the franchise model for several reasons. “While some chains see it as a source of equity and funding, I see it as a massive talent investment. If you have some franchisees with entrepreneurial smarts, they can bring so much collective thinking into the business. In fact, our first drive-through in the Gold Coast resulted from an idea pitched by a franchisee. I think that’s a great testament to the benefits of franchising.”
There are now 3 GYG drive-throughs in operation, and Mark says they’ve been so well received that there are plenty more in the pipeline. The plan is to open 20 taquerias a year, 20 of which will be drive-throughs. Overseas expansion is also on the cards, particularly in Asia, with new store openings set for Singapore and Japan. “Our first opening in Singapore was in 2014, so we’re now a couple of years into our international growth strategy,” Mark shares.
“That was around the time Steven and Robert started looking into the idea of hiring a CEO. I mean, when you’re a start-up with only a few taquerias and then you grow to the point of having 65 taquerias, you know you’re onto something big. They wanted to make sure they didn’t stuff it up, so they looked to appoint someone who had CEO experience, as well as experience in running a larger organisation — someone who knew what a 300-plus unit operation looks like. So appointing me as CEO was quite a big move.”
Mark is enthusiastic about what the future holds for GYG, and is thrilled to be leading a brand he truly believes in. He says he loves the concept, the values and, of course, the food. “I’m a spicy steak–salad man. I’m probably going to be hassled by my mates for saying that,” he laughs. “However, I do throw in an extra protein serving of spicy chicken. I reckon I can get away with salad if I’m doing double protein. Then I also add guacamole, as well as red onion and chipotle salsa from the salsa station. That is one very good meal.”
