Retail Food Group Company Profile
OverviewRetail Food Group Limited or 'RFG' is a leading Australian retail food brand manager and franchisor with over 1,200 franchised outlets under its stewardship.
It is currently the intellectual property owner, franchisor and manager of the Donut King, Michel's Patisserie, Brumby's Bakery, bb's cafe, Esquires Coffee Houses and Pizza Capers Gourmet Kitchen franchise systems.
Retail Food Group Limited was admitted to the Official List of the Australian Securities Exchange ('the ASX') on the 20th of June 2006 following an oversubscribed initial public offer.
Since its listing, RFG has demonstrated the strength of its unique business model and strong management by delivering on the strategic growth initiatives outlined in its May 2006 Prospectus and consistently returning significant value for its shareholders, franchisees and other stakeholders. Recent highlights have included:
Franchising:As a franchisor, Retail Food Group operates 'full format' franchise systems. Under full format franchising, a relationship is established between the franchisor and franchisee whereby the franchisor grants a franchisee the right to establish and operate a business under the franchisor's brand and system in return for the payment of a fee. The franchisee is contractually bound to operate its business according to the systems, formats and operational standards specified by the franchisor and will typically pay a royalty based on turnover.
In addition to providing the 'blue print' for operating a franchised business, the franchisor directs the overall marketing strategy for its brands together with providing ongoing quality control, guidance, supervision and business enhancements. Marketing and promotion is typically funded by a marketing levy contributed to by franchisees.
Currently there are around 1,025 business format franchises in Australia and an estimated 69,900 units operating under them. Franchising provides the franchisor with an avenue to grow its business without expending significant capital whilst providing franchisees with the security of a proven brand, product and business system. The majority of franchising continues to take place in retail trade, which accounts for 26 per cent of franchisors. Accommodation and food service (including 'fast food') franchises represent 17 per cent of franchisors. Administration and support services (including travel agencies, office services, domestic and industrial cleaning, gardening services and lawn mowing) account for 15 per cent of franchisors.
International Franchising:International franchising opportunities also exist with an increasing number of markets opening up and franchising almost universally accepted as a way of doing business. More than one-quarter of Australian franchise systems have international operations, contributing millions of dollars in export income from royalties and franchise fees. Two-thirds (68 per cent) of the international franchised and company-owned units were located within the English-speaking nations of New Zealand, UK, Canada and USA. Some 12 per cent of units were held in Europe and the remainder was mostly in South East Asia.
Strength in Brands:The Company is of the view that by assembling, enhancing and growing a fortress of strong, vibrant and profitable retail food franchise systems whose menu is consumer relevant, innovative, and above anything else, demands patronage, not only safeguards RFG's own future, but just as importantly, insulates and fortifies the franchisees of each of its systems.
'Strength in brands' essentially allows for economies of scale, cross pollination of products, collaborative marketing initiatives, co-branding and leveraging RFG's proven management systems and growing national presence to take advantage of significantly increased scale.
The first Donut King outlet was opened in Sydney in 1981 and the concept was shortly thereafter developed into a rudimentary franchise system. The Donut King system has since evolved into Australia's largest specialty donut and coffee retailer and grown to in excess of 360 outlets throughout Australia, New Zealand, China, Papua New Guinea and the Kingdom of Saudi Arabia.Donut King targets the 'impulse buy', 'reward' and 'treat' segments of the food retailing sector and attracts a broad range of customers across a diverse demographic profile.Whilst Donut King offers a variety of products including milkshakes, Quake Shakes®, frozen beverages, hot dogs, ice creams, toasts and its own proprietary blend of espresso coffee, the signature products of the Donut King system are constituted by the popular 'original' and 'classic' donut ranges.
Michel's Patisserie was established in Sydney in 1988 before being launched as a complete franchise system in 1990. It is now one of Australia's most successful retail food franchise systems with over 320 outlets throughout Australia and additional outlets situated in New Zealand and Indonesia.Michel's Patisserie specializes in the sale of specialty cakes, treats and savory products. The brand is also renowned for its award winning coffee blend.Michel's Patisserie's iconic brand, successful franchise system and innovative distribution model are key strengths which have positioned the network for further growth in the future.
Brumby's Bakery is generally concerned with the retail sale of specialty breads and is one of Australia's largest and most successful franchise systems. Indeed, Brumby's was among one of the first Australian retail food concepts to embark on a franchising program not only when franchising was in its infancy, but during a period when the specialty bread market was first emerging.Like most successful businesses, Brumby's had a modest beginning. The first store, known then as the 'Old Style Bread Centre', was opened in the Victorian suburb of Ashburton in 1975. Over the next decade, the 'Old Style Bread Centre' was introduced to, and expanded within, Queensland.During the 1980's it was believed that the system would be stronger with a truly Australian identity and the "Brumby's Bakery" brand was born.The system has since grown to incorporate over 320 stores situated in Australia, New Zealand and Papua New Guinea and incorporates sub-brands 'Brumby's GO!' and 'Big Dad's Pies'.
The bb's cafe system developed from the BB's Coffee & Croissants concept first established in the late 1980s in response to growing consumer demand for espresso style coffees and complementary offerings. It is now an established brand with over 50 outlets throughout Australia and New Zealand.bb's cafe outlets are specialty cafés serving the system's proprietary espresso coffee together with fresh baked and pre-pared foodstuffs. An extension of the system, bb's cafe Plus!, also offers alcoholic beverages and an extended menu range.Each bb's cafe outlet is designed with an ambience, style and menu offering targeted at a broad cross section of consumers with the objective of creating a 'welcoming oasis' for customers.
Esquires Coffee Houses are a highly recognizable international brand which believes great coffee can help. The brand strongly supports Organic Fairtrade practices and offers customers a socially responsible choice for their favourite coffee based drinks.
Esquires is committed to providing high quality products and exceptional customer service. The brand offers a full range of hot and cold Organic Fairtrade beverages and a wide selection of food for anytime of the day.
As its name implies, the Pizza Capers system specialises in the sale of gourmet pizzas and related products using fresh restaurant quality and wholesome ingredients. First established in 1996 in the Brisbane suburb of Kenmore, Pizza Capers achieved a network of 12 outlets before embarking on a franchising program in 2005. The system has since grown to incorporate over 100 outlets predominantly in Queensland but also situated within NSW, the ACT, Victoria, South Australia, Tasmania and Singapore. At Pizza Capers, our customers can 'gourmet the everyday'.