1 00:00:05,640 --> 00:00:08,000 Speaker 1: Welcome to the Fear and Greed Business Interview. I'm sure 2 00:00:08,000 --> 00:00:11,720 Speaker 1: an ailmine Goodmany Gomez has copped a hammering from investors 3 00:00:11,840 --> 00:00:15,680 Speaker 1: despite reporting higher than expected earnings for its first six 4 00:00:15,800 --> 00:00:19,240 Speaker 1: months as a listed company. Gig was the biggest IPO 5 00:00:19,400 --> 00:00:22,880 Speaker 1: of last year and reported same store sales up nine 6 00:00:22,920 --> 00:00:26,960 Speaker 1: percent that sales fell and losses widened at its five 7 00:00:27,200 --> 00:00:30,200 Speaker 1: US stores. This is the company that has grown very 8 00:00:30,400 --> 00:00:33,800 Speaker 1: very quickly and remains well expensive relative to other stocks 9 00:00:33,880 --> 00:00:37,280 Speaker 1: like Domino's. But the boss of GYG remains very confident 10 00:00:37,440 --> 00:00:41,120 Speaker 1: and extremely passionate about the rollout of stores across Australia 11 00:00:41,360 --> 00:00:43,519 Speaker 1: and the growth of the brand in the US. This 12 00:00:43,680 --> 00:00:46,479 Speaker 1: reporting season, we're partnering with the team at osbiz to 13 00:00:46,520 --> 00:00:49,880 Speaker 1: bring you interviews with some of Australia's top business leaders. 14 00:00:50,200 --> 00:00:52,680 Speaker 1: Osbiz is the country's leading provider of live and on 15 00:00:52,800 --> 00:00:55,600 Speaker 1: demand video of the latest news in Australian business markets, 16 00:00:55,640 --> 00:00:58,720 Speaker 1: economy and startups. Sign up for free at Osby's dot 17 00:00:58,760 --> 00:01:02,680 Speaker 1: com TODAYU remarks coc of Mini Gomez. It's both with 18 00:01:02,880 --> 00:01:03,720 Speaker 1: Juliet Sally. 19 00:01:09,400 --> 00:01:12,959 Speaker 2: Good to see Steven so a solid result. She shared, 20 00:01:12,959 --> 00:01:15,960 Speaker 2: price though is dropping potentially on the US outlook can 21 00:01:16,000 --> 00:01:17,720 Speaker 2: you just talk us through the half in your words? 22 00:01:18,800 --> 00:01:19,360 Speaker 1: Yeah, sure. 23 00:01:19,760 --> 00:01:22,440 Speaker 3: Obviously very proud of what we released to the market today, 24 00:01:22,840 --> 00:01:24,520 Speaker 3: and could not be more proud of the people at 25 00:01:24,560 --> 00:01:28,160 Speaker 3: GUZMANI Gomez, which obviously include over fourteen thousand crew in 26 00:01:28,200 --> 00:01:33,120 Speaker 3: our restaurants, are amazing franchisees, our suppliers and everybody that's 27 00:01:33,120 --> 00:01:35,640 Speaker 3: truly dedicated to the mission at GYG, which is to 28 00:01:35,800 --> 00:01:37,960 Speaker 3: reinvent fast food and change the way the masses e. 29 00:01:38,560 --> 00:01:41,959 Speaker 3: So first six months as a publiclistic company, we're very 30 00:01:42,040 --> 00:01:44,679 Speaker 3: proud of and it really just shows our guest love 31 00:01:44,760 --> 00:01:48,520 Speaker 3: for GYG and our team's ability to execute on strategies. 32 00:01:48,640 --> 00:01:51,560 Speaker 3: So very very pleased with the results today. 33 00:01:52,280 --> 00:01:55,320 Speaker 2: Let's talk about the US section though, because your Australian 34 00:01:55,440 --> 00:01:58,200 Speaker 2: EBIT increased more than thirty seven percent, but that was 35 00:01:58,280 --> 00:02:01,840 Speaker 2: offset by more than sixty percent decline from the US. 36 00:02:02,040 --> 00:02:04,120 Speaker 2: How are things going in the US in a very 37 00:02:04,240 --> 00:02:06,600 Speaker 2: saturated market, Like. 38 00:02:06,680 --> 00:02:10,519 Speaker 3: We said, you know, the US is We're extremely optimistic. 39 00:02:10,639 --> 00:02:12,800 Speaker 3: You know, we have five restaurants about to open up, 40 00:02:12,800 --> 00:02:15,119 Speaker 3: our six and of course we would love to see 41 00:02:15,200 --> 00:02:18,040 Speaker 3: revenue growing at a fest pace, but you know, you 42 00:02:18,160 --> 00:02:21,160 Speaker 3: have to build brand and for us, it's all about 43 00:02:21,200 --> 00:02:23,560 Speaker 3: the guest experience. You know, we've been through this in Australia, 44 00:02:23,600 --> 00:02:26,360 Speaker 3: we've been through this in Singapore, and building brand takes 45 00:02:26,440 --> 00:02:29,120 Speaker 3: time and obviously, you know, our investors understand that. The 46 00:02:29,160 --> 00:02:32,600 Speaker 3: people at GYG understand that. So for us, it's always 47 00:02:32,720 --> 00:02:35,880 Speaker 3: been about food quality, our people in real estate, which 48 00:02:35,880 --> 00:02:39,560 Speaker 3: we will never ever compromise on. So in the US, 49 00:02:39,639 --> 00:02:42,240 Speaker 3: I mean, our food is outstanding and it's just getting 50 00:02:42,280 --> 00:02:44,720 Speaker 3: our product in people's hands. So we're heavily invested in 51 00:02:44,840 --> 00:02:46,840 Speaker 3: labor and our restaurants to make sure that we nail 52 00:02:46,880 --> 00:02:50,480 Speaker 3: that GYG experience. We're about to open our sixth restaurant, 53 00:02:50,520 --> 00:02:53,160 Speaker 3: which is in Evanston, Illinois, so all the restaurants are 54 00:02:53,200 --> 00:02:56,640 Speaker 3: in Chicago. That's how we'll build brand by obviously creating 55 00:02:57,000 --> 00:02:59,959 Speaker 3: a concentration YG so people get familiar with the brand. 56 00:03:00,520 --> 00:03:05,239 Speaker 3: Evan opens up market first college town we were in 57 00:03:05,320 --> 00:03:08,480 Speaker 3: Northwestern University is and we're super excited. And what we 58 00:03:08,560 --> 00:03:10,320 Speaker 3: feel is going to be the game changer as it 59 00:03:10,440 --> 00:03:12,480 Speaker 3: was here in Australia, is when we release Cleaning the 60 00:03:12,560 --> 00:03:15,440 Speaker 3: New Healthy, which should be released in the US by 61 00:03:15,480 --> 00:03:18,600 Speaker 3: the end of March, so watch the space. We're very 62 00:03:18,680 --> 00:03:21,720 Speaker 3: optimistic I wouldn't better us, but it's going to take 63 00:03:21,760 --> 00:03:23,000 Speaker 3: some time to build brand. 64 00:03:23,400 --> 00:03:25,679 Speaker 2: At the same time as trying to get into that 65 00:03:25,800 --> 00:03:28,280 Speaker 2: saturated market both here and in the US. And I 66 00:03:28,320 --> 00:03:30,720 Speaker 2: guess in most markets we are faced in cost of 67 00:03:30,840 --> 00:03:34,960 Speaker 2: living pressures. How is that sort of affecting sales and 68 00:03:35,040 --> 00:03:37,240 Speaker 2: how are you trying to come around that when people 69 00:03:37,280 --> 00:03:40,360 Speaker 2: are not eating out potentially as much as they used to. 70 00:03:41,480 --> 00:03:42,920 Speaker 3: Well, you know, I get that, I get asked that 71 00:03:43,080 --> 00:03:45,320 Speaker 3: question a lot. I mean, GYG is fast food for 72 00:03:45,440 --> 00:03:47,760 Speaker 3: this generation and if you see our restaurants, we have 73 00:03:47,880 --> 00:03:50,760 Speaker 3: more kids than ever coming to GYG. And what we've 74 00:03:50,800 --> 00:03:52,720 Speaker 3: been able to figure out is when I think about 75 00:03:52,760 --> 00:03:56,360 Speaker 3: traditional fast food, they're fast, but it's not food anymore. 76 00:03:56,720 --> 00:03:58,920 Speaker 3: You know, we are completely transparent what we sell on 77 00:03:59,000 --> 00:04:02,400 Speaker 3: our menu and it's really resonating with this generation and 78 00:04:02,680 --> 00:04:05,680 Speaker 3: most of the generations here in Australia. You know, when 79 00:04:05,680 --> 00:04:08,000 Speaker 3: people ask about the economy, and I'm not an economist, 80 00:04:08,200 --> 00:04:10,680 Speaker 3: but people have to eat right. They want high quality 81 00:04:10,800 --> 00:04:14,760 Speaker 3: food at value, at convenience and GYG we believe does 82 00:04:14,800 --> 00:04:16,920 Speaker 3: it better than anybody else. So you know, if the 83 00:04:16,960 --> 00:04:19,720 Speaker 3: economy is strong, economies week, I mean, people are coming 84 00:04:19,760 --> 00:04:22,680 Speaker 3: to GYG because it's high quality food, great value and 85 00:04:22,760 --> 00:04:25,159 Speaker 3: great convenience and obviously you can see it in our numbers. 86 00:04:25,680 --> 00:04:29,839 Speaker 2: And speaking of convenience, you've got eleven restaurants trading twenty 87 00:04:29,920 --> 00:04:32,120 Speaker 2: four to seven. What's the growth channel in that and 88 00:04:32,240 --> 00:04:34,000 Speaker 2: in terms of drive through as well. 89 00:04:34,839 --> 00:04:37,200 Speaker 3: So our focus at GYG and we have a very 90 00:04:37,360 --> 00:04:39,840 Speaker 3: very deep pipeline of restaurants and obviously our goals to 91 00:04:39,920 --> 00:04:42,760 Speaker 3: reach two thousand here in Australia. You know, eighty five 92 00:04:42,800 --> 00:04:44,960 Speaker 3: percent of the restaurants we will open the future will 93 00:04:45,000 --> 00:04:48,080 Speaker 3: be drive throughs. Currently it's about half of our store 94 00:04:48,160 --> 00:04:50,960 Speaker 3: network and obviously that's breakfast, lunch and dinner through the 95 00:04:51,080 --> 00:04:55,440 Speaker 3: drive throughs. We have eleven that basically are twenty four 96 00:04:55,440 --> 00:04:57,320 Speaker 3: to seven, which is something that we're very proud of. 97 00:04:57,640 --> 00:04:59,560 Speaker 3: And in time, we'd like all of our drive throughs 98 00:04:59,600 --> 00:05:01,400 Speaker 3: to be twe twenty four to seven, So no matter 99 00:05:02,000 --> 00:05:04,880 Speaker 3: what time you want to try Gyg or enjoy Gyg, 100 00:05:05,040 --> 00:05:07,520 Speaker 3: it'll be available to you. So in time we would 101 00:05:07,520 --> 00:05:10,440 Speaker 3: love all of our restaurants to be twenty four twenty 102 00:05:10,480 --> 00:05:10,960 Speaker 3: four to seven. 103 00:05:11,360 --> 00:05:14,320 Speaker 2: How much further offerings are you making in the more 104 00:05:14,360 --> 00:05:17,120 Speaker 2: affordable market. I understand you've had a trial on things 105 00:05:17,240 --> 00:05:19,480 Speaker 2: like streak corn and smaller bowls. 106 00:05:20,560 --> 00:05:23,360 Speaker 3: Yeah, so have you had the street corn yet? We've 107 00:05:23,480 --> 00:05:27,040 Speaker 3: just released it. It is delicious, delicious and only three 108 00:05:27,040 --> 00:05:30,440 Speaker 3: point fifty I mean delicious, but even with the mini bowls. 109 00:05:30,520 --> 00:05:33,240 Speaker 3: I mean our view is, you know, what GYG has 110 00:05:33,279 --> 00:05:35,400 Speaker 3: been able to create over you know, obviously we've been 111 00:05:35,560 --> 00:05:37,679 Speaker 3: in business for eighteen years, is one of the fastest 112 00:05:37,720 --> 00:05:40,680 Speaker 3: fresh food operating platforms anywhere, which is basically we have 113 00:05:40,720 --> 00:05:43,600 Speaker 3: a dual limitar line that's basically built around this Bespokes 114 00:05:44,200 --> 00:05:48,080 Speaker 3: stickering system and enables us because we have no capacity 115 00:05:48,160 --> 00:05:52,640 Speaker 3: constraints to do regular sized burritos, many burritos, regular sized bowls, 116 00:05:53,040 --> 00:05:55,960 Speaker 3: mini bowls, and it's you know, I mean my view is, 117 00:05:56,080 --> 00:05:57,480 Speaker 3: you know, if people want to eat less, then eat 118 00:05:57,560 --> 00:06:00,480 Speaker 3: less and come to GYG. So we have thing for 119 00:06:00,560 --> 00:06:04,080 Speaker 3: everybody and it creates incredible value. You know, our three 120 00:06:04,120 --> 00:06:06,360 Speaker 3: dollar tacos, which is you know, I mean, you know 121 00:06:06,520 --> 00:06:09,560 Speaker 3: Australians still buy all they'll pass on the supermarkets, which 122 00:06:09,720 --> 00:06:11,600 Speaker 3: that's a whole of the conversation. I can understand that 123 00:06:11,800 --> 00:06:13,680 Speaker 3: would you come to GYG. We make our own hearts 124 00:06:13,720 --> 00:06:17,200 Speaker 3: shell tacos, our beautiful ground beef, shred of lettuce, cheese, 125 00:06:17,520 --> 00:06:20,000 Speaker 3: and it's cheaper to come to GYG than to cook 126 00:06:20,080 --> 00:06:22,679 Speaker 3: it home. And that's a huge part of our success 127 00:06:22,839 --> 00:06:25,960 Speaker 3: is that people love our menu, they love our clean food, 128 00:06:26,040 --> 00:06:28,680 Speaker 3: and especially love the value that we obviously provide for them. 129 00:06:29,400 --> 00:06:31,760 Speaker 2: I assume people that got in at the IPO also 130 00:06:31,839 --> 00:06:34,719 Speaker 2: loved the value that's been returned to them. Your shares 131 00:06:34,760 --> 00:06:37,880 Speaker 2: at one point topping forty five dollars. At what point 132 00:06:37,920 --> 00:06:40,920 Speaker 2: would you then potentially look to returning to shareholders in 133 00:06:40,960 --> 00:06:41,880 Speaker 2: the form of dividends. 134 00:06:43,120 --> 00:06:46,000 Speaker 3: Well, I leave that to Eric who was our CFO 135 00:06:46,080 --> 00:06:48,840 Speaker 3: and our finance team, but in the near future, you know, 136 00:06:48,920 --> 00:06:51,800 Speaker 3: we looked to obviously give back, you know, some of 137 00:06:51,920 --> 00:06:56,000 Speaker 3: our profitability in the terms of dividends to our shareholders, 138 00:06:56,000 --> 00:06:57,720 Speaker 3: and that'll be announced when the time is right. 139 00:06:58,440 --> 00:07:00,400 Speaker 2: When it comes to the overall valuation, you know a 140 00:07:00,440 --> 00:07:03,240 Speaker 2: lot of analysts out there saying you're valued more around 141 00:07:03,560 --> 00:07:07,040 Speaker 2: the thirty nine forty dollars price target. Again, you can't 142 00:07:07,080 --> 00:07:09,200 Speaker 2: control the market, but what would you say to people 143 00:07:09,279 --> 00:07:12,280 Speaker 2: that say above forty five dollars you're too heavily valued, 144 00:07:13,040 --> 00:07:14,080 Speaker 2: and you know you're. 145 00:07:14,000 --> 00:07:16,640 Speaker 3: Right about that. I actually don't comment under the stock price. 146 00:07:16,680 --> 00:07:18,280 Speaker 3: I don't really look at the stock price, you know. 147 00:07:18,280 --> 00:07:20,160 Speaker 3: I mean we're here for the long term. I mean, 148 00:07:20,200 --> 00:07:24,680 Speaker 3: our team is so dedicated and so talented, and all 149 00:07:24,760 --> 00:07:26,680 Speaker 3: we care about is making sure that we execute on 150 00:07:26,720 --> 00:07:28,680 Speaker 3: the strategy that we tell our shareholders and for the 151 00:07:28,680 --> 00:07:31,320 Speaker 3: people at GYG. So as we say, the marketer do 152 00:07:31,440 --> 00:07:33,200 Speaker 3: what the market does. It's our job to build an 153 00:07:33,280 --> 00:07:36,440 Speaker 3: exceptional business. And obviously, and that's what we look to 154 00:07:36,840 --> 00:07:37,680 Speaker 3: achieve in future. 155 00:07:38,320 --> 00:07:40,080 Speaker 2: All right, Well, let's get back to your target, as 156 00:07:40,120 --> 00:07:42,360 Speaker 2: you say, to become the next McDonald's with more than 157 00:07:42,400 --> 00:07:45,360 Speaker 2: one thousand restaurants in Australia. What's the sort of timeframe 158 00:07:45,440 --> 00:07:46,480 Speaker 2: for that. How are you tracking? 159 00:07:47,120 --> 00:07:49,480 Speaker 3: So this year, obviously in our prospectives we said we'd 160 00:07:49,520 --> 00:07:52,440 Speaker 3: open up thirty one restaurants and we're obviously on track 161 00:07:52,520 --> 00:07:54,480 Speaker 3: for that, and we would look to over the next 162 00:07:54,600 --> 00:07:56,720 Speaker 3: five years continue to build on that to get up 163 00:07:56,720 --> 00:07:59,840 Speaker 3: to about forty restaurants a year. We have an amazing 164 00:08:00,040 --> 00:08:02,560 Speaker 3: real estate development team. We have ten full time real 165 00:08:02,640 --> 00:08:06,240 Speaker 3: estate people. We're just looking for triple triple A drive throughs. 166 00:08:06,240 --> 00:08:07,960 Speaker 3: Where we can't find a triple A drive through, we 167 00:08:08,040 --> 00:08:10,440 Speaker 3: find a triple A strip and the pipeline is what 168 00:08:10,520 --> 00:08:12,800 Speaker 3: we call it, is getting bigger and bigger, and we're 169 00:08:12,800 --> 00:08:15,880 Speaker 3: approving about four to five triple A real estate sites 170 00:08:15,920 --> 00:08:18,080 Speaker 3: a month, you know, which has to go through a 171 00:08:18,200 --> 00:08:22,040 Speaker 3: very comprehensive process. So our pipeline is getting stronger. And obviously, 172 00:08:22,200 --> 00:08:24,480 Speaker 3: you know, the goal for GG is to hit a 173 00:08:24,600 --> 00:08:26,880 Speaker 3: thousand restaurants in Australia. 174 00:08:26,440 --> 00:08:30,000 Speaker 2: In time a very tight labor market, Steve, and are 175 00:08:30,040 --> 00:08:33,120 Speaker 2: you finding it difficult to find workers, No, not at all. 176 00:08:33,200 --> 00:08:34,880 Speaker 3: I think people, you know, I mean, obviously they see 177 00:08:34,920 --> 00:08:36,679 Speaker 3: the excitement and the energy in our restaurants and we 178 00:08:36,800 --> 00:08:39,760 Speaker 3: want to become a part of it. And we're attracting 179 00:08:40,040 --> 00:08:43,319 Speaker 3: amazingly talented and driven teenagers. And then and we're holding 180 00:08:43,360 --> 00:08:44,959 Speaker 3: onto a lot of the crew that in a restaurant 181 00:08:44,960 --> 00:08:47,680 Speaker 3: because they enjoy being at GYG. So you know, making 182 00:08:47,720 --> 00:08:50,360 Speaker 3: sure that we give them opportunities on learning development and 183 00:08:50,480 --> 00:08:53,240 Speaker 3: we truly developed them and to become the next leaders 184 00:08:53,280 --> 00:08:55,559 Speaker 3: at GG is key to our success as well. 185 00:08:55,960 --> 00:08:58,319 Speaker 2: And just a final thought on you know, looking forward 186 00:08:58,360 --> 00:09:00,640 Speaker 2: in terms of guidance, you've had some pretty strong sales 187 00:09:00,679 --> 00:09:03,400 Speaker 2: to the second half, but we do have expected further 188 00:09:03,559 --> 00:09:05,880 Speaker 2: rate cuts, which you would think would boost consumer spending. 189 00:09:05,920 --> 00:09:08,720 Speaker 2: But on the other side a pretty weak Aussie dollar, 190 00:09:08,800 --> 00:09:11,760 Speaker 2: how are you sort of faring in terms of the 191 00:09:11,800 --> 00:09:13,440 Speaker 2: overall macroeconomic outlook. 192 00:09:14,040 --> 00:09:16,640 Speaker 3: I mean, this is why we love being in fast food, right, 193 00:09:16,720 --> 00:09:18,959 Speaker 3: I mean, people got to eat. So if the dollars strong, 194 00:09:19,040 --> 00:09:21,600 Speaker 3: the dollars week, the economy is strong, the economy's week. 195 00:09:21,840 --> 00:09:23,679 Speaker 3: We just want to make sure our chicken is grilled 196 00:09:23,720 --> 00:09:27,120 Speaker 3: to perfection. Our new Street corner is really resonating, and 197 00:09:27,520 --> 00:09:29,439 Speaker 3: we leave the markets and then the economy to the 198 00:09:29,480 --> 00:09:31,520 Speaker 3: economists and the players. We just want to make sure 199 00:09:31,800 --> 00:09:34,480 Speaker 3: that we deliver experience to all our guests. So I mean, 200 00:09:34,600 --> 00:09:36,880 Speaker 3: and as I said, being in fast food, you got 201 00:09:37,000 --> 00:09:39,559 Speaker 3: to eat. People want high quality, clean food at convenience 202 00:09:39,640 --> 00:09:42,079 Speaker 3: and great value, and that's what gyg offers its guests. 203 00:09:49,040 --> 00:09:52,720 Speaker 1: There was Stephen Mark's co CEO of gusman Egomez, speaking 204 00:09:52,960 --> 00:09:56,760 Speaker 1: with Juliet Sally on Osby's, Australia's leading provider of live 205 00:09:56,800 --> 00:10:00,480 Speaker 1: and on demand video of the latest news in Australian business, markets, 206 00:10:00,600 --> 00:10:04,080 Speaker 1: economy and startups. Sign up at Odsby's dot com dot Au. 207 00:10:04,280 --> 00:10:04,760 Speaker 3: It's free. 208 00:10:05,200 --> 00:10:07,560 Speaker 1: This is the Fear and Greed daily Interview. Join us 209 00:10:07,600 --> 00:10:09,720 Speaker 1: every morning for the full episode of Fear and Greed. 210 00:10:09,840 --> 00:10:12,200 Speaker 1: Daily business news for people who make their own decisions. 211 00:10:12,520 --> 00:10:14,440 Speaker 1: I'm Sean Elmer. Enjoy today.