{"id":36681,"date":"2023-10-20T14:45:35","date_gmt":"2023-10-20T14:45:35","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/prevailing-from-the-mexican-stand-off-page-2-of-2-startupsmart\/"},"modified":"2023-10-20T14:45:35","modified_gmt":"2023-10-20T14:45:35","slug":"prevailing-from-the-mexican-stand-off-page-2-of-2-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/prevailing-from-the-mexican-stand-off-page-2-of-2-startupsmart\/","title":{"rendered":"Prevailing from the Mexican stand-off – Page 2 of 2 – StartupSmart"},"content":{"rendered":"<\/p>\n

Customer confusion<\/h2>\n

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Perhaps inevitably, given his enthusiasm to introduce something new to the Sydney culinary landscape, there were teething problems.<\/p>\n

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\u201cWe overestimated the knowledge that people would have for the food,\u201d Marks admits. \u201cPeople would walk in and see the burrito and ask why rice was in it. They were used to the kind of Mexican food they\u2019d had up until then.\u201d<\/p>\n

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The initial consumer confusion, coupled with inefficient business operations, caused GYG to lose money in its first two years. Marks, who strikes you as a source of perpetual hyperactive energy, set about making changes \u2013 some small and some more significant.<\/p>\n

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\u201cWe gave away thousands of free burritos to customers and journalists,\u201d he says. \u201cWe figured we had to get the product in people\u2019s hands so that they understood it. We were very proactive in making other businesses aware of us too.\u201d<\/p>\n

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\u201cWe did small things to increase our lunchtime business by 100%, such as use charismatic Latin girls with fliers and started to let people choose their filling and salsa. We spent hundreds of thousands of dollars on our menu boards and positioned them so that people could see them properly.”<\/p>\n

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“We had to make it simple. We added hard shell tortillas because everyone asked for them but everything was still fresh to order and the customer experience improved.\u201d<\/p>\n

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Marks also urged customers to send him a \u2018postcard from Mexico\u2019 \u2013 feedback forms that could be left at each outlet. He claims to still read every single piece of customer feedback, good or bad.<\/p>\n

<\/p>\n

Getting operations into shape<\/h2>\n

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Crucially, Marks brought on an operations manager to help get the business into shape.<\/p>\n

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\u201cI was afraid that the outlets would be understaffed so we ended up overstaffed \u2013 there were sometimes more people in the kitchen than in the restaurant,\u201d he explains. \u201cThere was a lot of work in making sure our operations were tight.<\/p>\n

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\u201cWe spent a lot of time getting the right, talented people on board. I need to see that excitement too though \u2013 if they don\u2019t love what they do, I don\u2019t work with them. If I do work with them, they become like an extension of the family.\u201d<\/p>\n

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Expanding the brand<\/h2>\n

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Marks decided to expand the family to six stores across Sydney, with the Queensland rights sold to two entrepreneurial brothers, who opened the first Brisbane outlet opening in December last year. Revenue now tops $10 million, with more than 140 people employed.<\/p>\n

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Franchising the business was a wrench for Marks \u2013 \u201cI felt that I needed to go to franchisee therapy because it was my baby that I was letting go,\u201d he says \u2013 but it was necessary to help the business meet its expansion goals.<\/p>\n

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There will be 10 new GYG stores in the next year, with the brand set to be launched in Melbourne.<\/p>\n

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\u201cI have to make sure that I like franchisees, that they are ethical,\u201d says Marks. \u201cI want to celebrate my success with people I like. I need to make sure that they can money too, of course.\u201d<\/p>\n

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Marks says that GYG\u2019s franchise operations are \u201cpretty advanced\u201d, with detailed inventory systems and even e-learning so that potential franchisees can be taught how to roll a burrito over the internet.<\/p>\n

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Future vision<\/h2>\n

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Marks\u2019 vision is to get the restaurants to average $2 million revenue and have 80 stores across Australia within the next four years. Having gone through the pain of starting up, Marks is now ready for the pleasure.<\/p>\n

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\u201cIf you do it just for the money, you won\u2019t get anywhere \u2013 you have to love it,\u201d he says. \u201cCashflow will be tight regardless of what you do and you always need to raise more money than you think. You need a detailed idea and you need to surround yourself with smart people.\u201d<\/p>\n

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\u201cUltimately though, I can walk into my restaurant and no one can tell me what to do. I can walk into GYG and know it is exactly how I wanted it to be. That\u2019s an awesome feeling. It\u2019s a feeling I always wanted.”<\/p>\n","protected":false},"excerpt":{"rendered":"

Customer confusion \u00a0 Perhaps inevitably, given his enthusiasm to introduce something new to the Sydney culinary landscape, there were teething problems.<\/p>\n","protected":false},"author":2,"featured_media":62056,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/36681"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=36681"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/36681\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/62056"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=36681"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=36681"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=36681"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}