Retail Food Group (RFG) has announced the end of the Michel’s Patisserie chain, revealing it will work with franchisees to convert their stores to either Gloria Jean’s or Donut King.
There are just 19 Michel’s Patisserie stores across RFG’s home state of Queensland, New South Wales and Victoria. At its height the cake chain had more than 300 stores operating.
An RFG spokesperson said in a statement “While Michel’s Patisserie has a long history within Australia’s retail food market, a brand assessment has confirmed a variety of barriers to driving future brand growth; limitations that have been assessed while also considering how we as a network can better invest and help deliver lasting positive change for our franchise partners and stakeholders.
“In light of this assessment, we are engaging with all Michel’s Patisserie franchise partners to explore the opportunity for them to convert their business to the Gloria Jean’s brand, or where that outcome is not feasible, the Donut King brand.”
RFG thanked its Michel’s franchisees for their “ongoing passion” for the brand. The franchisor said it will work “in a collaborative and transparent way” to reach positive outcomes that suit each franchise partner.
“These conversations form part of our organisation’s evolution to be closer to our customers, focusing on elevating customer experience to drive growth, and increase franchise partner profitability,” the spokesperson said.
RFG to close Michel’s after 18 years of ownership
Michel’s was founded by French pastry chef Michel Cattoen in Sydney in 1980. Eight years later the two Noels, Noel Carroll and Noel Roberts, bought the business and in 1990 launched the franchise model.
RFG acquired the business in 2007. Michel’s has proven the troubled brand within the company’s portfolio which includes Brumbys, Crust Gourmet Pizza, Donut King, Gloria Jean’s and Pizza Capers.
In 2015 the franchisor switched from supplying fresh cakes to frozen and there was a decline in product quality.
Five years ago a Queensland court ruled RFG had breached Australian Consumer Law, successfully finding in favour of the franchisees’ claim they were misled in 2012 over quality and supplier agreements.
The same year the SMH revealed the multi-brand franchisor had ordered Michel’s franchisees to ignore food use-by-dates.
Most recently, RFG settled a class action by former franchisees, releasing franchisees from the historical debts associated with the claim.
Sibling brands Gloria Jean’s and Donut King
Michel’s has long been overshadowed by the performance of its two cafe, coffee and bakery sibling brands, Gloria Jean’s and Donut King.
In November 2024 RFG announced it would acquire Cibo Espresso from Retail Zoo, and rebadge the stores to Gloria Jean’s.
RFG CEO Matthew Marshall said at the time the strategy is to grow the core cafe, coffee and bakery brands. The stated ambition is to make Gloria Jean’s the “most visited beverage destination in the world”.
