Retail Food Group reports its same-store sales have risen by 20 per cent so far in the new financial year. Donut King’s massive 47.6 per cent uplift ensured it was the top performer in this period.
Retail Food Group is also the franchisor for Brumby’s Bakery, Cafe2U, Crust Gourmet Pizza, Gloria Jean’s, Michel’s Patisserie, Pizza Capers and The Coffee Guy.
Chairman Peter George said all brands had achieved a rise in average transaction values (ATV) year to date. The coffee chains saw a lift of at least 6 per cent.
“These are strong results, albeit compared against a Covid-19 impacted PCP, and provide considerable optimism regarding potential trading outcomes over the coming festive season,” he said.
The first half of the year has however been challenging, George said, citing staff shortages and inflationary pressures as major concerns.
For Brumby’s the business has launched a baker recruitment program and partnered with State based TAFEs. Several apprentices have already been employed.
George said “active engagement” with suppliers to “best manage supply chains and ensure they remain responsive to network requirements” has helped inflationary pressures.
The business has also introduced proactive pricing strategies focused on preserving franchisee profitability.
However increases in green bean and logistics costs have impacted coffee margins. RFG has absorbed some of these pressures to support franchisees.
More stores opened
RFG has opened seven new stores in Australia so far in 1H23, including a company-owned Gloria Jean’s drive through outlet in Cairns. A further six new outlets are scheduled for commissioning before Christmas 2022.
Up to 30 November, 12 existing stores have been sold, and 45 existing franchise agreements renewed. That brings renewals to a total of 85 since 1 May 2022.
Internationally RFG has seen improved trading conditions in most licensed territories. The global store footprint has risen by three, with 32 new outlets offset by 29 closures in the 1H23.
RFG will open about 50 more stores across 16 countries within this financial year. This pipeline includes four new US Gloria Jean’s drive through outlets.
The company expects in FY23 a rise of between 20.9 per cent and 34.8 per cent on FY22 underlying EBITDA.
- Peter George has joined online book retailer Booktopia as a non-executive director and chairman of the board. He will retain his executive chairman role at RFG, a position he has held for four years.
