Crisped out: Another Aussie food favourite bites the dust
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If you've ever lined up for a warm, comforting feed at your local snack stop, this one might hit close to home.
A once-buzzing food franchise has quietly entered liquidation—leaving store owners stunned, creditors chasing answers, and loyal customers asking how it all fell apart.
From Spud Empire to Smashed Dreams
Mr Potato started with a bang in Adelaide, quickly growing into a nationwide chain with a simple but clever concept: fresh, customisable potato meals that promised a healthier alternative to your usual fast food fare.
The business was co-founded by Miss Universe entrant Jess Davis and her husband, former Adelaide 36ers NBL player Tyson Hoffman (also known as Tyson Finau).
Davis, who became the face of the brand, often shared the company’s journey on social media, painting a picture of entrepreneurial success and healthy living.
But behind the scenes, things weren’t quite so rosy. On Friday, the company’s management arm was placed into liquidation after the Australian Taxation Office (ATO) brought a wind-up action over a $151,000 debt.
Phil Robinson of Deloitte was appointed as liquidator, and the court’s decision took less than two minutes.
Franchisees Left in the Lurch
For many franchisees, the collapse of Mr Potato has been nothing short of devastating. Some have lost their homes, others have been forced to borrow money just to keep their stores afloat, and a few are now facing bankruptcy.
The number of franchises dwindled from 13 to just four by mid-2024, with the last Queensland outlets closing their doors in February.
A former franchisee, speaking to the media, warned potential investors to steer clear of both Mr Potato and the couple’s next venture—a $4 million eco-resort in Tonga.
In earlier news: Lawsuit reveals widespread misconduct at major lender, puts home loans at risk
'We invested and lost our time, health, mentality and family and we even had to borrow money to support a non-profitable business while trying to keep a roof over our heads,' he said.
The whistleblower also claimed that Davis and Hoffman were difficult to reach when problems arose and that support and training were lacking.
'To think anyone else could be put in this position like a lot of the other Mr Potato franchisees who have lost everything, lost their homes [and] gone bankrupt, would be criminal.'
A Shift in Focus and More Controversy
As the business faltered, Davis stepped down as co-CEO in June last year, leaving Hoffman as the sole CEO while she took on the role of 'head of brand.'
Source: @mrpotatoaus / Instagram.
'As a CEO, building this business from the ground up over the last five years has been the most challenging, yet rewarding, adventure of my life,' she said.
The couple then shifted their focus to a national food truck tour and, more controversially, to their new project.
Oseni, a luxury eco-resort on the Tongan island of Nomuka. Their call for $50,000 investments from the public to help fund the resort sparked outrage among former franchisees and observers, who questioned the wisdom of investing in another high-risk venture.
According to their Instagram, the resort is set to feature 30 private, eco-friendly villas and a seaplane wharf to ferry guests from the Tongan mainland. But with the collapse of Mr Potato, many are urging caution.
What Went Wrong?
So, how did a business with so much promise end up in such dire straits?
The story of Mr Potato is a cautionary tale for anyone considering buying into a franchise or investing in a 'hot' new business.
While the founders have pointed to the usual challenges—market conditions, individual store management, and personal circumstances—franchisees say they were left without adequate support or guidance.
In a statement, Hoffman insisted that each store was responsible for its own financial obligations and that the company remained committed to transparency and franchisee success. 'While we respect the experiences of former franchisees, it's important to clarify key points and address misinformation.
'Business performance varies due to multiple factors, and we encourage all franchisees to conduct thorough due diligence before making financial commitments,' he said. 'We care deeply about our franchisees and want them to succeed. We provide support not only in business but also in navigating the various challenges that life presents.
'Like any business, the success of a franchise ultimately depends on the business management, effort, and execution of the individual franchisee.
'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.'
Read next: Is this freezer staple gone forever? Aussie food lovers scramble for alternatives
Have you ever invested in a franchise or been caught up in a business collapse? What advice would you give to others thinking about taking the plunge? Share your stories and thoughts in the comments below!
A once-buzzing food franchise has quietly entered liquidation—leaving store owners stunned, creditors chasing answers, and loyal customers asking how it all fell apart.
From Spud Empire to Smashed Dreams
Mr Potato started with a bang in Adelaide, quickly growing into a nationwide chain with a simple but clever concept: fresh, customisable potato meals that promised a healthier alternative to your usual fast food fare.
The business was co-founded by Miss Universe entrant Jess Davis and her husband, former Adelaide 36ers NBL player Tyson Hoffman (also known as Tyson Finau).
Davis, who became the face of the brand, often shared the company’s journey on social media, painting a picture of entrepreneurial success and healthy living.
But behind the scenes, things weren’t quite so rosy. On Friday, the company’s management arm was placed into liquidation after the Australian Taxation Office (ATO) brought a wind-up action over a $151,000 debt.
Aussie fast food chain Mr Potato has collapsed and entered liquidation due to a $151,000 debt owed to the ATO, leaving franchisees facing bankruptcy and financial hardship. Image source: @mrpotatoaus / Instagram.
Phil Robinson of Deloitte was appointed as liquidator, and the court’s decision took less than two minutes.
Franchisees Left in the Lurch
For many franchisees, the collapse of Mr Potato has been nothing short of devastating. Some have lost their homes, others have been forced to borrow money just to keep their stores afloat, and a few are now facing bankruptcy.
The number of franchises dwindled from 13 to just four by mid-2024, with the last Queensland outlets closing their doors in February.
A former franchisee, speaking to the media, warned potential investors to steer clear of both Mr Potato and the couple’s next venture—a $4 million eco-resort in Tonga.
In earlier news: Lawsuit reveals widespread misconduct at major lender, puts home loans at risk
'We invested and lost our time, health, mentality and family and we even had to borrow money to support a non-profitable business while trying to keep a roof over our heads,' he said.
The whistleblower also claimed that Davis and Hoffman were difficult to reach when problems arose and that support and training were lacking.
'To think anyone else could be put in this position like a lot of the other Mr Potato franchisees who have lost everything, lost their homes [and] gone bankrupt, would be criminal.'
A Shift in Focus and More Controversy
As the business faltered, Davis stepped down as co-CEO in June last year, leaving Hoffman as the sole CEO while she took on the role of 'head of brand.'
Source: @mrpotatoaus / Instagram.
'As a CEO, building this business from the ground up over the last five years has been the most challenging, yet rewarding, adventure of my life,' she said.
The couple then shifted their focus to a national food truck tour and, more controversially, to their new project.
Oseni, a luxury eco-resort on the Tongan island of Nomuka. Their call for $50,000 investments from the public to help fund the resort sparked outrage among former franchisees and observers, who questioned the wisdom of investing in another high-risk venture.
Former franchisees claim they struggled with lack of support from founders Jess Davis and Tyson Hoffman, with some losing their homes or considering legal action after unprofitable business experiences. Image source: Mercedes-Benz Gold Coast / Facebook.
According to their Instagram, the resort is set to feature 30 private, eco-friendly villas and a seaplane wharf to ferry guests from the Tongan mainland. But with the collapse of Mr Potato, many are urging caution.
What Went Wrong?
So, how did a business with so much promise end up in such dire straits?
The story of Mr Potato is a cautionary tale for anyone considering buying into a franchise or investing in a 'hot' new business.
While the founders have pointed to the usual challenges—market conditions, individual store management, and personal circumstances—franchisees say they were left without adequate support or guidance.
In a statement, Hoffman insisted that each store was responsible for its own financial obligations and that the company remained committed to transparency and franchisee success. 'While we respect the experiences of former franchisees, it's important to clarify key points and address misinformation.
'Business performance varies due to multiple factors, and we encourage all franchisees to conduct thorough due diligence before making financial commitments,' he said. 'We care deeply about our franchisees and want them to succeed. We provide support not only in business but also in navigating the various challenges that life presents.
'Like any business, the success of a franchise ultimately depends on the business management, effort, and execution of the individual franchisee.
'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.'
Read next: Is this freezer staple gone forever? Aussie food lovers scramble for alternatives
Have you ever invested in a franchise or been caught up in a business collapse? What advice would you give to others thinking about taking the plunge? Share your stories and thoughts in the comments below!
