Zambrero founder Sam Prince takes Federal Court legal action against ex-CEO Stuart Cook

After a former CEO claimed he drove Zambrero’s dazzling growth, the Mexican fast food chain’s billionaire founder went to court. Here’s what happened next.

When former Zambrero CEO Stuart Cook started claiming he was largely responsible for its success, the Mexican fast food chain’s billionaire founder Sam Prince was none too pleased.

Prince — a doctor who went on to eliminate the disease of crusted scabies from Australia — established Sydney-headquartered Zambrero in 2005 when he was 21 while he was studying medicine.

Today Zambrero has 300 stores and aims to grow that to more than 1000. It has donated 80 million meals to people in hunger.

Zambrero, which is majority owned by Prince, filed action in the Federal Court in December alleging Cook had engaged in misleading or deceptive conduct.

Cook was Zambrero CEO from 2009 to 2015.

Sam Prince, the billionaire founder of Zambrero. Picture: Supplied

Stuart Cook was once CEO of Zambrero. Picture: Justin Lloyd

In a document filed with the court, Zambrero said Cook “was not primarily responsible for the success and expansion of the Zambrero business during the relevant period.

“Dr Prince and (another former Zambrero boss) Karim Messih … were primarily responsible for the success of Zambrero”.

Cook denied those allegations and the case has now been settled.

The court order dismissing the proceedings says: “Without any admission of liability and without conceding that he has made any of the representations or that they are misleading or deceptive.

It also says “Mr Cook undertakes that he will not make or be involved … in the making of … representations” including that he “set up Zambrero”, was “solely responsible for building up Zambrero during his time as CEO” and that he “is primarily responsible for its success.”