Retail Food Group is looking to accelerate new store openings across Australia as the franchise operator recorded $489.5 million in domestic network sales in FY26.
The company, which operates brands including Gloria Jean’s, Donut King, Brumby’s, Crust and Beefy’s, is positioning new formats and expansion opportunities as key growth drivers, despite domestic network sales falling 3.1 per cent during the year.
Same-store sales fell 0.7 per cent amid challenging consumer spending conditions. Underlying EBITDA slid 31.4 per cent to $20.3 million.
The company opened six new outlets during FY26 and closed 35 underperforming or non-core locations, resulting in a net reduction of 29 stores across its network.
The closures formed part of a broader strategy to optimise its footprint and improve the quality and profitability of its store network, while creating opportunities for future expansion.
The group is now focused on expanding its presence in new markets, including regional locations, and on expanding its portfolio by rolling out the US sandwich chain Firehouse Subs.
The first Australian Firehouse Subs restaurant opened at Mt Gravatt in Queensland during the year and recorded an opening-day sales record for an international Firehouse Subs location, according to the company.
Retail Food Group plans to have four Firehouse Subs stores operating by December, before expanding the network to 15 locations by the end of next year.
“Retail trading conditions continued to remain challenging in FY26, and 2H26 saw further impacts from macroeconomic and geopolitical factors,” said executive chairman Peter George.
“It’s been pleasing to see the resilience of our brands through those challenges as we begin to see the impacts of the business improvement measures.”
Looking ahead, the company is targeting an additional $5 million to $7 million in savings in FY27 while focusing on improving franchise partner economics, margins, and cash generation.
- Further reading: Declining sales reflect ‘difficult’ conditions at Retail Food Group
