Multibrand food-chain franchisor Retail Food Group (RFG) says all of its brands enjoyed positive same-store sales growth in the December half.
The company owns and operates Gloria Jean’s, Crust Gourmet Pizza, Donut King, Brumby’s Bakery, Cafe2U Michel’s Patisserie, Pizza Capers and The Coffee Guy.
For the six months, same-store sales (SSS) grew 17.9 per cent compared to the previous year, boosting underlying earnings before income and taxes to $13.7 million.
Among the group’s portfolio, Donut King was a “standout” performer contributing 40.7 per cent of SSS growth in the half aided by a 32.5 per cent increase in customer count and average transaction value.
Its international division – Master Franchise Partners (MFPs) and Di Bella Coffee – contributed $2 million to EBITDA and added 44 new outlets in the half.
The company also launched a new concept, Rack ‘em Bones BBQ Ribs, leveraging its existing QSR outlets and maximising profitability.
RFG executive chairman, Peter George, said the group’s coffee brands enjoyed a significant ‘bounce back’ post-Covid as customers returned to normal shopping routines.
“We remain focused on delivering solutions for our franchise partners to unlock growth and drive profitability.
“This focus has led to a range of initiatives, including virtual brand extension, the ongoing cost of goods review, menu optimisation, pricing evaluation and RRP review to offset inflationary pressures, marketing investments and the implementation of a new e-commerce platform in the second half to improve customer experience and functionality.”
The company resolved court proceedings brought by the Australian Competition and Consumer Commission (ACCC) in late December agreeing to pay certain franchisees $8 million and waive franchisee debts of $1.8 million.
