Failed for being four minutes late: Where Mad Mex CEO’s ‘ruthless focus’ comes from

So far, Mad Mex isn’t feeling the crunch, but price rises are on the menu. “We’ve definitely got a price increase coming next financial year … that’s inflation.”

The chain will be competing in the fast-growing Mexican fast food space against its larger rival, Guzman y Gomez, which has its own ambitious growth plans to conquer the US market and list on the ASX, and currently holds market dominance with 160-odd stores around the country.

Frangie says they’re not looking at what their competitor is doing. “We will run our own race. We will continue to deliver a great product, a great customer experience through great people,” she said. “We are in no rush.”

But it is clear the newly minted boss is focused on getting in front of customers. Mad Mex seeks to position itself at the higher end of fast food, but whether that message has been received is another matter. “Our product is premium, but over the years we’ve ailed to authenticate just how authentic our product is [and] really nailing that perception with the customer,” she said.

Frangie doesn’t believe the product needs to change: market research and customer feedback suggests it’s fresh, tasty, healthy, and comes in sizeable servings. “Though, when we ask mainstream customers, they’re not as familiar with our brand or our product, so it’s really that brand awareness,” she said. “The other thing that’s going to get that message out is consistency in messaging.”

To hit 100 stores by 2026, the chain will have to open more than 10 restaurants every year for the next three years. Mad Mex will be competing with other food outlets for highly coveted real estate in busy shopping centres, food courts and entertainment hubs next to cinemas and bowling alleys. Notably, the strategy does not incorporate drive-throughs, unlike Guzman y Gomez, which has reported success with the format.

Frangie has already notched a few wins: in the past six years, earnings (EBITDA) have doubled. The company declined to provide earnings or revenue figures. Same-store sales growth has risen 25 per cent every month for the past 12 months. Since joining Mad Mex, Frangie has increased the frequency of communication and engagement with franchisees and staff by moving annual meetings to a quarterly basis and establishing a weekly newsletter.

“Six and a half years ago, people weren’t at the heart of the business, it wasn’t [at] the forefront. Clovis had the aspirations of that, but that wasn’t quite happening.”

Frangie’s background in operations also differentiates her from outgoing CEO Young. “I can definitely say the first year I came on board, it had its own challenges as I started to find my feet and working with Clovis, but that became the key to our success,” she said.

“When you report to a founder CEO, there’s a lot of heart in their decisions. So when you initially approach things from what I might seem to think is a commercial perspective, a big thing you can’t forget in a founder organisation is, this is their blood, sweat and tears.”

Young will leave day-to-day operations to Frangie while he focuses on “strategy” and “special projects”.

“This gives him an opportunity to really leverage his entrepreneurial strength and also to go out there and mentor people [with] his 16 years of experience at Mad Mex and where he has taken this brand.”

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