Mexican magic

Sarah Stowe

HOW LONG HAS THE BUSINESS BEEN OPERATING?  
Mad Mex opened in November 2007 and we opened our first franchised location in November 2009.   
 
WHAT WAS THE INSPIRATION FOR THE BUSINESS?
I’m a native of Southern California and Mexican food was a part of our daily lives growing up, and it was always a personal favourite. My wife’s family lived in Sydney, so we had several chances to visit and we performed very thorough due diligence visiting 20 or more Mexican restaurants before deciding that we should move to Sydney to introduce our vision of great Baja style Mexican food.
 
WHAT IS THE VISION FOR THE BUSINESS?
To be the most loved and respected Mexican brand in Australia. We aim to provide customisable, fast, vibrant, fresh and high quality Mexican food in friendly surroundings.
 
WHY DID YOU DECIDE TO ENTER THE ALREADY COMPETITIVE FAST FOOD MARKET?
Given the success of this style of food in the US and elsewhere it seemed quite clear to us that there was a tremendous opportunity to provide Australians with a new fresh and healthy food that was served quickly without the compromises of traditional fast food.
 
HOW DO YOU TRY TO STAND OUT IN THE CROWD?
We have a great vibe, with funky Latino music, a custom-made Corona chandelier, ice cold Coronas and margaritas; in short Mad Mex is a fun place to be. We then focus on preparing great food for customers. Each customer orders and watches their food as it is prepared.   
 
WHAT DO POTENTIAL FRANCHISEES NEED TO CONSIDER BEFORE INVESTING IN YOUR BRAND?
Mad Mex only recruits franchisees as passionate about the business as we are. A love for Mexican food is non-negotiable. Owner-operators are essential to Mad Mex as we are dedicated to providing fantastic customer service and consistent high quality. We can only do this if the owner leads the team from the front and has great people skills.
 
WHAT DO YOU SEE AS THE SECRET TO SUCCESS IN THE FAST FOOD ARENA?
We know that customers like to customise their meals to suit their diet and tastes and that’s the backbone of the Mad Mex service method. We also see a trend towards quality that’s affordable. Customers are willing to pay a little more for great healthy food.  
 
WHO ARE YOUR COMPETITORS?  
We consider anyone that provides a decent meal for $8 to $15 as a competitor, but in the Mexican space we think we have a unique offering.
 
WHAT SKILLS DO YOU BRING TO THE BUSINESS?
I have a finance background and a very hands-on approach.  Investor and director, Phillip Blanco, was involved in building Gloria Jeans in Australia, so he brings a decade of franchising experience to Mad Mex. Our operations manager, Bernie Ponti was the Asia-Pacific operations manager for Chilies Bar and Grill.   
 
HOW ARE YOU BUILDING BRAND AWARENESS?  
Mad Mex is currently investing in building brand awareness through various social media and online platforms. New store openings and the launch of the first online nutritional calculator in Australia are supported by traditional in-store marketing as well as a strong focus on PR.
 
HOW IMPORTANT IS LOCATION?  
Location is critical and we look for areas that trade seven days a week and where we can have a liquor licence.  We also focus on areas that have a younger demographic that is more inclined to eat out than cook in. Our stores are about 30 percent takeaway and 70 percent dine-in.
 
WHO IS YOUR CUSTOMER?
The Mad Mex customer varies between our different sites, however our key users are 18 to 35 year olds who enjoy eating in a fun and friendly environment.  
 
TURN-KEY COST?
From $300,000 to $500,000.
 
MARKETING LEVY?
Two percent.
 
ROYALTY COSTS?
Six percent.
 
HOW MANY FRANCHISEES ARE IN THE SYSTEM?
We currently have four franchised locations and expect that to increase dramatically over the next six to 12 months.
 
HOW MANY STORES DO YOU PLAN TO OPEN IN THE NEXT 12 MONTHS?
Six to 10.
 
WHICH AREAS ARE YOU LOOKING TO EXPAND IN?
New South Wales, Western Australia, Victoria and Queensland.