Gold Coast-based fast food outlet Oporto hopes to do a deal with creditors to continue operating

The fast food industry is proving to be a tough market with a franchisee of an Oporto outlet hoping to do a deal with creditors to continue operating.

TRENDY fast food outlet Oporto is trying to avoid becoming a casualty of the hotly contested quick-service restaurant sector on the Gold Coast.

The chain’s Surfers Paradise outlet, in heart of tourist hotspot Cavill Ave, has gone into voluntary administration with the hope of coming to an arrangement with creditors, including the taxman, to continue operating.

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Sydney-based MaC Insolvency was appointed administrator last Thursday and the first meeting of creditors will be held on Monday.

The franchisee of Surfers Paradise Oporto outlet is hopeful of coming top a deed of arrangement with creditors to continue operating. Pic: Courier-Mail

MaC Solvency managing director Trent McMillen said the store was still operating and he would know by the end of May if the business could be saved.

“Still trading under my control as administrator while I conduct investigations and formulate a Deed of Company Arrangement to be proposed to creditors, which will avoid liquidation and allow the business to trade out,” Mr McMillen said in a statement to The Courier-Mail.

“All staff retained, no changes to trade.”

Besides the embattled Surfers Paradise eatery, last August, fast-food rival Taco Bell announced it would open a venue at Robina in a store that was previously occupied by an Oporto restaurant.

The Oporto store at Harbour Town is just one of the fast food chain’s restaurants on the Gold Coast. Picture Mike Batterham

Owning an Oporto franchise is not cheap.

According to their website, the total cost will vary depending on the size and layout of the store.

“Typically, stores cost between $450,000 and $900,000 (plus GST) to establish,” the website states.

“Smaller stores or stores with existing equipment may cost less and larger stores may cost more. In addition to this you will need to pay the franchise fee of $50,000 (plus GST).”

Originally published as Gold Coast-based fast food outlet Oporto hopes to do a deal with creditors to continue operating