RFG Expansion Continues

Retail Food Group (RFG) has announced an expected increase in profits as the company continues to expand its portfolio

The Aussie firm has told shareholders they expect a 10-15 per cent increase in profit for the first half, while expansion continues with a deal to acquire a Donut King competitor and the Brumby’s master franchises in north Queensland and New Zealand.

There are 37 outlets within Brumby’s North Queensland territory and a 19 outlets in New Zealand.

The owner of the Michel’s Patisserie, Donut King, Brumby’s and bb’s cafe franchise brands also announced the acquisition, for an undisclosed amount, of the ‘Donuts Coffee and Muffins’ franchise – a direct competitor of Donut King with 23 outlets, mainly in New South Wales.

The company also anticipated FY10 full year organic new outlet growth to be approximately 40 outlets, with half of those to be established prior to 31 December 2009.

A company spokesperson said: “New outlet growth has been tempered by a tightening of new franchisee enquiry, lack of shopping centre development resulting in reduced prime site opportunities and stricter lending practices adopted by lenders. We have therefore adjusted our growth strategies to accommodate these factors whilst pursuing non-traditional site and potential acquisitive outlet conversion opportunities.”

Retail Food Group has developed into one of the largest Australian multi-food franchise groups with four franchise systems, boasting in excess of 1050 stores.