Mr Potato founders Jess Davis and Tyson Finau, aka Tyson Hoffmann, plan island resort as stores close

A national fast-food chain, founded by two high-profile entrepreneurs, has been boiled down to half its size with stores closing across Australia. So why are its founders planning to build an island resort?

A national potato-themed fast-food chain, founded by two high-profile entrepreneurs, has been boiled down to half its size, closing its last two Queensland stores as its expansion plans fail to eventuate.

But the chipping away of the Mr Potato brand hasn’t stopped its glamorous founders from securing a tropical island paradise and spruiking shares in a yet-to-be-built eco resort.

Mr Potato was launched by model Jessica Davis and Tyson Finau, also known as Tyson Hoffmann, who played for the Adelaide 36ers NBL team.

It had Gold Coast franchises at Broadbeach, Mermaid Waters, Upper Coomera, Palm Beach and Robina as well as stores in Western Australia, across Sydney and in Adelaide, where it was founded in 2018.

Founders Jessica Davis and Tyson Hoffmann at their new store. Picture: Tricia Watkinson

After the liquidation of three Gold Coast stores in 2023 – run by Mr Finau’s sister – Ms Davis said it was a “bump in the road”.

“Since starting Mr Potato in late 2018 we have grown to a network of 13 locations Australia-wide, with a further four locations set to open before the end of 2023,” she said at the time.

But new stores have failed to eventuate and the network has been sliced to six, with none left in Queensland.

Stores at Upper Coomera, Palm Beach, and Robina are permanently closed along with stores at Bateau Bay and Charlestown in NSW and a store in Perth’s Joondalup, WA.

Staff of the Mermaid Waters and Broadbeach stores found out their jobs were gone via a WhatsApp message on Monday morning.

Ms Davis, an aspiring Miss Universe 2024 contestant, said Mr Potato HQ was working to take over the two recently closed Gold Coast stores.

“These stores have been integral parts of vibrant communities and Mr Potato is truly saddened to see them close,” she said.

“We remain optimistic about their future success and the continued job security of staff at both locations.”

Mr Potato stores have closed down this week, including the Broadbeach store at Oracle Bvd. Picture: Glenn Hampson

Ms Davis said the Robina store closed as its franchisee agreement had “come to an end” and the company-operated Upper Coomera store had closed due to “location challenges”.

“Like any business, the success of a franchise ultimately depends on the business management, effort, and execution of the individual franchisee,” she said.

“Various factors, including personal, family, and health challenges - that can affect all of us at times - may also impact one’s ability to successfully operate a franchise or any business.”

Despite the apparent mashing of their brand, the chain’s founders have bought themselves a 100ha chunk of beachfront land on a tropical island, where they plan to develop an eco resort.

They’re seeking investments of $50,000 to $4m-plus for the venture, advertising equity shares via a website.

According to the couple’s social media, they bought the beachfront land, on the Tongan island of Nomuka, and planned to build themselves a home.

But then the idea expanded “into some next-level-s**t” and they have outlined plans for a resort named Oseni, which will host “30 private, luxurious and eco-friendly villas” on the remote beach.

The couple plans to “build a seaplane wharf” to help ferry guests from mainland Tonga to ’Eua, landing on the sea “out the front of the resort”.

Mr Potato founders Jessica Davis and Tyson Finau Hoffman are seeking investors for their Tonga eco resort, which is yet to be built.

Ms Davis did not answer specific questions about the investment offer, saying the resort was a “long-term passion project that has only just passed the discovery phase”.

“It is separate from the Mr Potato group of companies, and the founders’ focus remains solely on the Mr Potato brand,” she said.

“When the project progresses further, we will provide an update on timelines and completion.”

Both Ms Davis and Mr Finau are directors of Oseni and each hold various different classes of shares in the company.

No other shareholders are registered with ASIC.

Mr Potato Group is solely directed by Ms Davis, with Mr Finau ceasing as a director in December 2023.

Ms Davis, who turns 35 on Friday, is also a director of companies linked to Mr Potato stores in Sydney’s Newtown and at Glenelg in South Australia.

Mr Finau also holds multiple directorships of companies linked to Mr Potato stores across Australia.

The brand launched a new menu in January and is prepping for a nationwide food truck tour, with more than 70 town and city stop-offs advertised.

“We lost so much money”

Staff of the Mermaid Waters and Broadbeach Mr Potato stores, mostly school-aged teenagers employed as casuals, found out without notice that their jobs were gone via a WhatsApp message on Monday morning.

The message, from franchisee Amy Kelly, said the decision had not been taken lightly.

“Unfortunately, the stores are just not working out for us and will be permanently closed as of today,” she wrote.

“Thank you for all your support and hard work over your time with us.

“Any outstanding pays will be sorted next week (the normal pay day).

“We want to wish you all the most success in your bright futures.

“If you need a reference letter, please reach out.”

When contacted by the Gold Coast Bulletin, Ms Kelly said she was devastated to have to close the stores.

“We have lost so much money, we have kept putting money into the stores just to keep them afloat, but we just kept losing,” she said.

“The past year has probably been the hardest of my life.”

Ms Kelly and her husband Age opened the Broadbeach store, in the Oracle centre, in May 2023 and took over the Mermaid Waterssite in November that year.

The company behind the Mermaid store, solely directed by Tyson Finau’s sister Shanay Finau, had gone into liquidation.

“I loved the opportunity to give young kids a go in their first jobs,” Ms Kelly said.

“I’m so sad about these guys not having jobs anymore, it’s horrible, it’s not the way I wanted it to work out.

“I cared about my staff.”

Originally published as Mr Potato founders Jess Davis and Tyson Finau, aka Tyson Hoffmann, plan island resort as stores close