- Guzman y Gomez (ASX: GYG) runs a mix of corporate and franchised restaurants and has said it expects about 40% of stores to be corporate-owned over the long run.
- Industry sources put the cost of a new drive-thru restaurant at around $1.7 to $2 million, with roughly 40% of the project cost expected as the franchisee’s own capital.
- Drive-thru sites now make up most of the network, and their leases often run 20 to 30 years.
Guzman y Gomez opened its first taqueria in Sydney in 2006 and listed on the ASX in June 2024. It has grown quickly through a combination of company-owned and franchised restaurants, and drive-thru sites now make up the large majority of its Australian portfolio.
This is one of the larger investments in Australian quick-service franchising. The size of the commitment and the length of the leases make careful modelling essential.
Guzman y Gomez franchise at a glance
| Sector | Mexican-inspired quick service |
|---|---|
| Owner | Guzman y Gomez Limited (ASX: GYG) |
| Founded | 2006, Sydney; franchising since 2007 |
| Ownership model | Hybrid of corporate and franchised restaurants |
| Main format | Drive-thru (about 85% of the portfolio, per the company in 2024) |
| Reported investment | About $1.7 to $2 million for a new restaurant (industry estimates) |
| Equity | Around 40% of the project cost in liquid capital (industry reports) |
| Drive-thru leases | Typically 20 to 30 years |
Figures come from the public sources listed at the end of this guide and can change. Treat them as a starting point and confirm current numbers in the franchise disclosure document.
How the Guzman y Gomez model works financially
Guzman y Gomez restaurants are high-volume operations with long trading hours. Because sales are large in absolute terms, small changes in labour or food cost percentages move profit by significant amounts.
Franchisees fund the build and ongoing maintenance of their restaurants. Drive-thru sites involve land or long-term ground leases, development approvals and construction risk, so the timetable to opening and the cost to complete matter as much as forecast sales. A 20 to 30 year lease is a commitment that will outlast several franchise terms, so align the two before you sign.
As a listed company, GYG publishes network results. Use them for context, but test the forecast for your specific site.
The numbers to test before you buy a Guzman y Gomez franchise
- Total project cost to opening, including construction contingencies and pre-opening wages.
- How much you fund with equity versus debt, and the repayments the restaurant can carry.
- Lease term, rent reviews and make-good obligations compared with the franchise term and renewal rights.
- Labour and food cost percentages at forecast volumes, including late-night and weekend trading.
- The royalty and marketing contributions in the disclosure document, and the sales they apply to.
- Ramp-up time to forecast sales and the cash needed until then.
Buying an existing Guzman y Gomez restaurant
Established franchised restaurants change hands from time to time, subject to franchisor approval. With trading history available, test weekly sales, labour and food cost and capital spending, and check the remaining lease and franchise terms carefully given their length.
How Franchise Co. can help with a Guzman y Gomez purchase
We work with buyers and owners of franchise businesses across Australia. For a Guzman y Gomez restaurant we can:
- Review the numbers before you sign. Our business due diligence starts from $2,000 + GST and tests the project budget, funding structure, lease and sales forecast against the disclosure document.
- Set up the structure and the books. Entity choice, GST, payroll and a chart of accounts that tracks labour and food cost weekly against volume. See accounting and tax and bookkeeping, BAS and payroll.
- Check your franchise fees. We reconcile royalty and marketing contributions to the sales they’re calculated on. See royalties and franchise fees.
- Plan the next restaurant. If a second site is on the cards, we model the cash flow and funding first. See multi-site reporting.
Guzman y Gomez franchise FAQs
How much does a Guzman y Gomez franchise cost?
Industry sources estimate a new drive-thru restaurant at around $1.7 to $2 million, with about 40% of the project cost expected as the franchisee’s own capital. Confirm current figures with GYG.
Is Guzman y Gomez a franchise or company-owned?
Both. GYG runs a hybrid model with corporate and franchised restaurants and has said it expects about 40% of stores to be corporate-owned over the long term.
Why do Guzman y Gomez leases run so long?
Drive-thru sites often involve long-term ground leases of 20 to 30 years. Make sure the lease and franchise terms, including renewal rights, line up.
What should I model before buying a GYG restaurant?
Build cost and contingency, funding and repayments, labour and food cost at forecast volumes, and the time it takes to reach forecast sales.
Franchise Co. is an independent accounting practice. We aren’t affiliated with, endorsed by or connected to Guzman y Gomez or Guzman y Gomez Limited. Guzman y Gomez is a trademark of its owner and is used here only to identify the brand this guide discusses.
Sources and further reading
- Morningstar: Guzman y Gomez business model
- realcommercial.com.au: Guzman y Gomez drive-thru growth
- BusinessesForSale: How much is a Guzman y Gomez franchise?
- ACCC: Franchise disclosure document
Sources checked November 2026. Franchise costs and fees change. Confirm current figures with the franchisor before acting.
This guide is general information for people considering a franchise in Australia. It doesn’t take your circumstances into account and isn’t personal tax, legal or financial advice.
Talk it through
Every franchise is different. Ask us how this applies to yours.
