PROFITS DOWN FOR FRANCHISOR

Written on the 9 February 2011

PROFITS DOWN FOR FRANCHISOR

BRANDCHISOR Retail Food Group (RFG) will likely settle on its acquisition of Esquires Coffee Houses (Esquires) in Australia and New Zealand later this month.

The company has downgraded its profit guidance as 56 of its Brumby’s outlets and 31 Donut King stores were shut temporarily due to floods, with 108 outlets across all of its brands affected.

RFG announced during its 2010 AGM that it anticipated NPAT to be $12.5 million as a result of deluge affecting its northern NSW and Brisbane outlets and increased wage costs brought about by the recently introduced Modern Awards under the FairWork Act.

RFG CEO Tony Alford says it would be naïve to suggest that normal trading conditions will resume as a matter of course.

“Many franchisees will experience a long period of revenue reduction, and in some cases, this may result in a permanent reduction in retail sales within those communities worst affected by flood. This may have long term adverse affects for those franchisees concerned”.

Retail Food Group is the franchisor and intellectual property owner of the Donut King, Michel’s Patisserie, Brumby’s Bakeries (including Big Dad’s Pies), and bb’s café franchise systems.


Latest News

BRISBANE VFX PRODUCTION COMPANY CLEANS UP AT MAJOR INTERNATIONAL ADVERTISING AWARDS

AUSTRALIAN production company Alt.vfx has broken records in global advertising, becoming the first business to win...

CYCLONE DEBBIE FORCES MINE, RAIL AND PORT CLOSURES AS IT WREAKS HAVOC IN QUEENSLAND

COAL and gold mines in north and central Queensland are being seriously impacted as Cyclone Debbie makes landfall ...

FLYING START TO 2017 PASSENGER NUMBERS FOR GOLD COAST AIRPORT

RECORD numbers of travellers used the Gold Coast Airport (GCA) in January this year, continuing a five-year trend ...

SUNCORP SAYS IT'S 'COVERED' AGAINST FINANCIAL COST OF CYCLONE DEBBIE

INSURER Suncorp (ASX: SUN) says it is "well protected" against the financial impact of Cyclone Debbie th...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter