Convenient comfort food still on the consumer radar
Retail Food Group, a leading Australian retail food brand manager and franchisor, has reported that retail trade performance for the first two months of 2009 has seen momentum continue as consumers continue to demand convenient comfort food.Year-to-date performance has seen network sales growth of almost six per cent and similar growth in average weekly sales across their four franchise systems – Donut King, Brumby’s, bb’s Café and Michel’s Patisserie.
Over contribution of Michel’s and Brumby’s (65%) had resulted in less reliance on Donut King and bb’s café (36%), the company noted, with Brumby’s a very solid performer due to the “staple nature of its product”.
“Notwithstanding adverse retail conditions, operational performance of our franchisee community is both robust and encouraging given the Christmas and New Year trade provides the stimulus and platform for full year Company outlook,” RFG CEO Tony Alford said.
Growth for the year ahead is anticipated to be robust as they look to deliver forecast new store growth, rationalise outlets that fail to meet performance criteria and leverage supplier contracts through increased scale.
“Absent any significant deterioration in market conditions affecting our systems, all of which have to date evidenced considerable resilience to external adverse economic forces, RFG is confident of achieving a minimum FY09 full year NPAT of $21m, representing a 19.5%,” Mr Alford advised.