Zambrero: Legal battle between ex-CEO Stuart Cook and founder Sam Prince comes to an end after the former chief was accused of taking too much credit – as his latest vegan business venture collapses
A legal battle between a former Zambrero CEO and the founder of the Mexican fast food chain has been settled after the former executive was accused of touting his role within the company before opening a new restaurant.
The Australian founder of the popular food chain, Sam Prince, took Stuart Cook to the Federal Court earlier this year, alleging that Cook had made misleading statements about his time at Zambrero.
Mr. Cook was CEO of Zambrero from 2009 to 2015 and is also the founder of the entrepreneurial advisory firm TWIYO, which stands for “the world is your oyster.”
Dr. Prince, who is reportedly worth around $1.6 billion, sued Cook in February of this year for alleged “misleading or deceptive conduct.”
The case was settled in June and Mr Stuart, who denied the allegations, was not ordered to pay costs.
Mr Cook, without any admission of liability and without admitting that he made misleading statements, has agreed not to bring a series of claims.
These include statements that he “founded Zambrero, was solely responsible for building Zambrero during his tenure as CEO, is responsible for its success and expanded the business from two stores to 100, with an additional 250 pre-sold,” the court document said.
Mr. Cook also pledged not to comment on his time at Zambrero in relation to one of his recent business ventures that has since collapsed: Flave, a restaurant serving plant-based burgers and salad bowls.
The Australian founder of the popular food chain, Sam Prince, took Stuart Cook (pictured with his wife Samantha Cook) to the Federal Court earlier this year, alleging he made misleading statements about his time at Zambrero
Zambrero founder Sam Prince (pictured), who is reportedly worth around $1.6 billion, sued his former CEO earlier this year for alleged “misleading or deceptive conduct.”
He agreed to make “no representation that Flave had the same management team as Zambrero; and that Flave’s management team was responsible for scaling Zambrero to over 100 locations.”
Mr Cook declined to comment on the matter.
He previously made headlines in December 2022 when he raised money through crowdfunding for the plant-based company he founded with his wife Samantha Cook.
He gave several media interviews and Flave received nearly $900,000 from 510 investors.
During the crowdfunding, Flave was described as having “the same management team that scaled the Zambrero restaurant chain to over 100 locations.”
In a webinar for those interested in investing at Flave, Mr. Cook spoke extensively about his corporate background, including his time at Zambrero.
“I was the former CEO of Zambrero and took the company from two restaurants to 100 restaurants and then exited,” he said.
The Mexican chain was founded in 2005 by Mr. Prince.
Zambrero has grown to 265 restaurants worldwide, including in Australia, the US, the UK and New Zealand.
The Cooks founded a plant-based restaurant, Flave, with celebrity chef Scott Findlay
In 2012, the company had 20 locations, and by 2015, that number had grown to 100. Zambrero currently has 265 restaurants worldwide, including in Australia, the US, the UK and New Zealand.
Before the case was settled, Dr. Prince accused Cook of taking credit for Zambrero’s success in interviews and podcasts.
The case was dismissed by the court on June 13.
It comes after the collapse of Flave, whose two stores in Bondi, Sydney’s east, closed in the middle of last year. The first store opened in late 2021.
Flave’s website is no longer available, despite the company’s aim to expand to 1,000 stores within 10 years.
The Cooks started their business in 2020.
Mrs. Cook developed a bacterial infection after drinking a coconut while on her honeymoon with Mr. Cook in Costa Rica. She was told to follow a plant-based diet.
The Cooks opened their first Flave store in Bondi in late 2021, but the business has since closed
The couple started the plant-based company Flave after Mrs Cook fell ill on their honeymoon and was encouraged to adopt a vegan diet
This eventually led to the birth of Flave, with all dishes developed by head chef Scott Findlay, who was taught by Gordon Ramsay and was Sir Paul McCartney’s personal chef for seven years.
Mr. Findlay has collaborated with artists such as Beyoncé, Elton John, Madonna and Pink.
Flave’s co-founders said in a letter to shareholders last week that they hadn’t paid themselves since January of last year and were paying $10,000 in bills each month.
“We have actively explored several options, including closing the Australian operations and holding discussions with potential international partners. However, their assessment, like ours, is that Flave is slightly ahead of current consumer habits,” the Australian Financial Review said.
‘The plant-based food industry has seen significant fluctuations in recent years. While there was initial excitement and rapid growth in the sector, recent trends indicate a shift in consumer interest and behavior.
“The bottom line is that there simply isn’t a demand in Australia for a large-scale, fully vegan eatery that caters to the masses.”