The formerly promising Australian fast-food firm that specialized in gourmet potato dishes has gone into liquidation, leaving behind a path of franchisees who were saddened and a large debt load.
Its management firm, located in Adelaide, collapsed due to financial strain when the Australian Taxation Office filed a wind-up case over an outstanding debt of more than $151,000.
The dissolution of the management entity was legally managed by liquidator Phil Robinson of Deloitte during a brief court session on Friday that reportedly lasted less than two minutes.
Former Miss Universe Australia contestant Jess Davis, who co-founded the chain with her husband Tyson Hoffmann, a former Adelaide 36ers NBL player, was the only person in charge of this organization.
For franchisees, who had previously disclosed the tremendous struggles they faced as their stores continuously failed to produce a profit, the collapse is a terrible conclusion. It was reported that some people had to sell their family homes to pay for the increasing losses,
and others were considering suing the parent business. The firm, which is well-known for its nutritious potato-themed products, had already experienced a sharp decline,
closing its last Gold Coast locations in Queensland in February. There were only four franchises left in operation by June of this year, down from a peak of thirteen.
Adding to the chaos was the disclosure that Jess Davis had resigned from her position as co-CEO in June, as revealed in a private email that was previously obtained. A “wild ride” from baking their first potato to establishing a “Australian-wide spud empire,” Davis mused in the email on starting the company “from
the ground up” over a five-year period. Hoffmann continued to serve as the only CEO, and Davis became the “head of brand.” Despite the difficulties facing the franchise network, the founders promoted the brand by traveling across the country in a food truck for a large portion of the year.
In addition, Davis caused a great deal of controversy earlier this year when he asked for $50,000 on Instagram to fund a different $4 million tropical resort project. Purchasing a 100-hectare beachfront tract
on the Tongan island of Nomuka, she and Hoffmann intend to construct “Oseni,” an eco-resort with 30 opulent homes and a seaplane pier for visitors.
For former franchisees still in shock over their losses, this endeavor stoked rage. In a stern caution to prospective investors, a representative for the impacted businesses advised them to avoid the fast-food chain and the planned resort.
“Authorities need to look closely at what they’re doing,” the spokesperson said, before adding, “We want to come forward in the hopes no one else in the future buys into [the brand] or invests in their upcoming travels and resort build.”
According to the whistleblower, franchisees were “hung out to dry,” with Davis and Hoffmann failing to give proper training or assistance and failing to respond when important concerns surfaced. Additionally, they said Hoffmann frequently demanded royalties from struggling franchise owners while allegedly owing money to creditors and suppliers.
The former franchisee complained, “We invested and lost our time, health, mentality, and family.” “In an effort to maintain our housing, we even had to take out a loan to fund a losing venture… It would be illegal to have anyone else in this situation, like many of the other franchisees who have lost everything, their houses, and their jobs.
Hoffmann has previously stressed individual store accountability in a statement addressing franchisee concerns: “Each store is responsible for its own financial obligations to suppliers.” He affirmed the company’s dedication to “transparency, franchisee success, and the strength of our brand,” while also
admitting that company performance differs. Hoffmann emphasized that the corporation felt “deeply” about its franchisees and wanted them to succeed, but that each franchisee’s success was dependent on “business management, effort, and execution,” which might be affected by personal issues.
Despite these claims, the Mr. Potato management firm is currently in liquidation, its franchisees suffering financial devastation, and its owners are pursuing their goal of a tropical island resort.
