GYG Accelerates Drive-Thru Expansion Amid ASX200 Fast-Food Competition

May 08, 2025 12:40 PM AEST | By Team Kalkine Media

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GYG Accelerates Drive-Thru Expansion Amid ASX200 Fast-Food Competition — Image source: shutterstock

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Highlights

GYG Expands Drive-Thru Focus

Coffee Strategy to Rival Fast Food Giants

ASX200 Context for Growth-Driven Brands

Mexican-inspired fast food chain Guzman y Gomez is revving up its expansion strategy with a strong emphasis on drive-thru locations. The company revealed plans to ensure that 85% of its future outlets will feature drive-thru capabilities, a move that aligns with evolving consumer demand for speed, convenience, and mobility.

Of the 220 restaurants the company currently operates across Australia, approximately half already include a drive-thru. Speaking at a recent industry event, Co-CEO and founder Steven Marks shared that some of the brand’s drive-thru venues are generating exceptional weekly revenue, with leading outlets bringing in over $250,000 per week.

“Drive-thru stores are not only performing well—they're outperforming expectations,” Marks said. He emphasized that customer demand for fast, high-quality food and beverage options on the go has never been stronger.

Beyond burritos and tacos, GYG is taking a strategic leap into the competitive coffee segment. With breakfast orders contributing meaningfully to its performance, the company is developing a dedicated coffee strategy to further capture morning traffic. According to Marks, McDonald’s (NYSE:MCD) currently accounts for one in four coffees served in Australia and generates roughly $1 billion annually from coffee sales alone. GYG intends to tap into that lucrative market by ensuring that all stores employ barista-trained staff to elevate their coffee offering.

This growth mindset aligns with broader trends across the Australian fast-food sector, particularly as businesses navigate competition in the post-pandemic era. Investors and industry observers watching the evolving landscape of ASX200 fast-food businesses can find useful parallels with GYG’s trajectory—even though GYG is not yet publicly listed.

For those analyzing potential expansion-driven consumer brands or ASX dividend stocks, GYG's performance metrics offer useful benchmarks. Although not part of the ASX200 yet, the company’s rapid footprint expansion and strategic positioning in both the food and coffee segments signal strong intent toward scalability and potentially future listings.

Guzman y Gomez’s continued investment in drive-thrus and coffee innovation is setting the stage for long-term competitiveness. With shifting consumer behaviors favoring convenience and quality, the company’s current strategies could offer a strong template for growth in Australia’s fast-casual dining sector.

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