Australia’s largest multi-brand retail food and beverage franchise owner, Retail Food Group (RFG), has shed light on its changing strategy in the wake of continued challenges.
The group has long been navigating a difficult environment, with declining sales in its fiscal first half prompting a cost-saving push. Now, in an update to investors on the ASX, RFG said it expects to save between $2.3 million and $2.5 million by the end of the financial period.
But it has already seen sales fall by 4.8 per cent so far in the second half of the fiscal year.
“Trading conditions remain difficult for our franchise partners, and we have responded by focusing our marketing activity on simple, value-led campaigns designed to reconnect with core customers, drive transaction growth, and stabilise customer count performance,” said RFG executive chairman Peter George.
“Our use of more scalable and efficient campaigns, focused on core product ranges and frequency-driving occasions, is a key element of our ongoing transformation agenda, which is ultimately focused on supporting our franchise partners as they navigate these challenging trading conditions.”
George, however, said that RFG is approaching a “key milestone” with the opening of the first Australian Firehouse Subs store, which is expected to launch this month at Westfield Mount Gravatt in Brisbane.
“This restaurant will represent a key milestone in RFG’s partnership with Restaurant Brands International and is the culmination of a significant schedule of work, including the establishment of a domestic supply chain,” he added. “We have positioned the brand for success, and lease negotiations are progressing for additional sites, in support of our broader rollout schedule and growth aspirations for each of our core brands.”
The transformation program at RFG is expected to conclude by the end of fiscal 2026. The following year, George said, will present “a more efficient cost base” for the group and its franchise partners. He also described the remainder of the current financial year as an “earnings inflection point” for the business.
