Do we like them?

Do we like Guzman y Gomez?

Mexican-themed fast-food chain (burritos, bowls, tacos) with company-owned and franchised restaurants, based in Sydney.

Our score: 5 out of 10. Mixed. It makes a popular product and is growing in Australia. But it has a history of underpaying staff, a lawsuit over abrupt US closures, and a franchisee dispute. We'd hold back for now.

GYG started in Sydney in 2006. Two New Yorkers, Steven Marks (a former hedge fund manager) and Robert Hazan (who came from fashion retail), missed the Mexican food they grew up with. It listed on the ASX in 2024 and Marks is still its founder and co-CEO.

The old drama is about pay. In 2018 the AFR reported GYG hadn't paid penalty rates to hundreds of workers for six years under an old enterprise agreement. A Fair Work Commissioner called some of the information given to staff 'obfuscating, if not outright misleading'. GYG said it didn't mislead its crew, and its workers ended up on the standard fast food award.

The US bet flopped. In May 2026 GYG shut all its Chicago-area restaurants straight away, saying performance wasn't acceptable. Former workers then filed a class action alleging they got no 60-day notice, with about 500 staff possibly affected. GYG says it is confident it met all its legal obligations. The case is unresolved.

Back home it's doing well. FY26 sales across the network rose to $1.38 billion and it opened 35 restaurants across Australia and Asia. It had no debt and a fresh $100m buyback. A franchisee, Andrew Hodgson, has also sued over a Kennington outlet, alleging unconscionable conduct. GYG denied it.

Our score is 5. It's a well-run growth story with some real labour-relations baggage. The 2018 pay saga is old, but the abrupt US closures and the ongoing lawsuits mean we'd want to see how those play out first.