Zambrero stores close with low sales blamed

Two outlets of popular Mexican fast food chain Zambrero, both located in prime locations in Brisbane and the Gold Coast, will be wound up after the economic downturn smashed their parent company and left it with debts of more than $100,000.

A FRANCHISEE of Mexican food chain Zambrero has surrendered two of her Queensland stores after low sales and repeated losses led to their collapse with staff owed unpaid superannuation.

The Mexican stores at Garden City and Surfers Paradise will now be wound up after they were put into administration last month, with director Kirsty Millikin unable to keep them operating.

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Ms Millikin is the sole director of Zam GC Pty Ltd and Norchap Industries Pty Ltd – which traded the two stores.

Five staff at the Garden City store are owed $2484 in unpaid superannuation while other creditors, some related, are in debt $98,962.

Historical financial data shows repeated losses at Zambrero Surfers Paradise, only turning a $21,103 net profit in FY19.

Zambrero, founded in Canberra, has more than 200 restaurants across the globe.

In this financial year to April 21 the store had lost $15,199, with data revealing the company was “struggling to pay short term liabilities”, according to administrator Michael Caspaney of Menzies Advisory.

“The director has advised that in December 2019 she noticed sales figures had dropped,” Mr Caspaney said.

“The director believes this was related to a decrease in economic activity and tourism in the area.

“She tried turning this around by increasing marketing and cutting costs where possible … However the business ceased trading on January 29 as it was no longer viable.”

The Surfers Paradise store is estimated to have liabilities totalling $112,258 and assets of $8418.

The stores, which are listed as ‘temporarily closed’, may be sold and reopened.

Zambrero was founded by Sam Prince in Canberra in 2005, and now has more than 200 restaurants across the globe.