Retail Food Group fights back tough time
One of Australia’s leading café and pizza franchising groups, Retail Food Group es expecting further poor results.
The group expects FY18 underlying NPAT (Net Profit After Tax) to be approximately $34.5 million and the statutory NPAT to be a loss of $87.6 million, which consider substantial impairment charges the group suffered at the end of 2017.
In May 2018, Richard Hinson was appointed to step in to replace the former managing director after joining the company in January 2018 to lead a strategic review of the business.
RFG, which operates food franchises such as Donut King, Gloria Jean’s Coffee and Pizza Capers, Crust Pizza and Michel’s Patisserie, was previously accused of forcing franchisees to the wall financially by charging exorbitant franchise fees along with excessive marketing and food costs for low quality products.
It was also alleged that RFG offered limited support to franchisees.
RFG previously revealed plans to close up to 200 outlets.
“Trading conditions in food retailing continue to be tough. The actions we are taking in collaboration with franchisees are starting to see a positive response,” Hinson says.
RFG is one of several franchise networks, including 7-Eleven, Domino’s Pizza and recently Red Rooster and Oporto’s parent company Craveable Brands, to be accused publicly of mistreating franchisees or similarly underpaying staff.
A federal parliamentary inquiry into the franchise sector is now underway in response to the string of allegations across several companies.
- Retail Food Group downgrades profit guidance again
- Retail Food Group profits to be hit by negative attention
Two food companies have taken home top prizes at the 2016 Telstra Business Awards.
Australian fresh produce marketer, Freshmax, has signed an exclusive stonefruit rights deal with lea...
McDonald’s Australia is using a unique social media process in order to recruit people to work in it...
There has been much hype surrounding the now confirmed entry of AmazonFresh into Australia. But will...
The Victorian State Government has decided to keep the Victorian Liquor Subsidy (VLS) as is.
The Australian Competition and Consumer Commission (ACCC) has put Australian produce growers and sel...
Franchisors in Australia have been warned to prepare for the introduction of new laws that will make...
ExpressPods has released its new compatible Baileys Premium Coffee Pod in Australia and New Zealand.