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.
PROFITS DOWN FOR FRANCHISOR
9 February 2011
Latest News
‘Huge day for us’: Asahi Beverages buys Adelaide’s Never Never Distilling Co
Adelaide-based Never Never Distilling Co, an award-winning gin prod...
Kokoda Property secures Kimpton Hotel for $1.5b Skyring Terrace project in Brisbane
Melbourne’s Kokoda Property, gearing up to start construction...
Iconic Brisbane music venue The Zoo to close despite record ticket sales
The Brisbane independent music scene has been dealt a heavy blow to...
Making data make sense: Canberra startup Aristotle Metadata stealthily bags major global contracts
After more than six years in 'stealth mode' as its founders...
New Perth CBD planning scheme aims to accommodate 55,000 people by 2036
The City of Perth is preparing for a major transformation over the ...
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
EtoroAdvertisement