Retail Food Group
Retail Food Group Limited is the intellectual property owner and manager of the successful Donut King, Michel’s Patisserie, Brumby’s Bakeries and bb’s cafe franchise systems. The company is renowned for its franchise systems, franchising expertise and systems management together with the success of its well known brands throughout the retail food industry. |
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Retail Food Group News
10.8.09
Leading Australian retail food brand manager and franchisor Retail Food Group Limited (ASX:RFG) has announced FY09 NPAT of $23.5m, a 33% (or $5.9m) increase on FY08.
NPAT from ‘Core Operations’ was $23.4m, up 52% (or $8.0m) on the result achieved in FY08.
EPS was 23.7 cents compared to 19.9 cents in FY08, while EPS from ‘Core Operations’ was 23.6 cents, representing an increase of 35.6% over EPS from ‘Core Operations’ in FY08.
KEY HIGHLIGHTS
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Final dividend increased to 4.75 cps fully franked (full year dividend 9.25 cps fully franked)
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Strong net cash inflow from operating activities of $23.2 million (75% growth on FY08)
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EBIT growth of 17.2% underpinned by:
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continued operational cost rationalisation and franchise system synergy enhancement, and
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increased EBIT contribution of acquired franchise systems (Brumby’s Bakeries and Michel’s Patisserie) as well as original systems (Donut King and bb’s café)
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Total debt reduced by further $21.8 million (or 18.5%) in FY09
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59 new outlets commissioned in FY09
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Continued international expansion in China with opening of 4 outlets in FY09
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Disposition of Central Manufacturing Facility (CMF) completed
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Consolidation of coffee roasting operations
Retail Food Group Limited is the intellectual property owner and manager of the successful Donut King, Michel’s Patisserie, Brumby’s Bakeries and bb’s cafe franchise systems.
Australia’s leading donut and coffee maker Donut King has launched its largest marketing campaign for the year aimed at encouraging coffee-lovers to sample its new Royal Bean coffee blend.
Developed by internationally-recognised coffee experts during the past 12 months, Donut King’s Royal Bean coffee blend features some of the world’s finest coffee beans.
The new marketing campaign is Donut King’s biggest coffee promotion and will run from 2 August for two months.
Supporting Royal Bean is a $1 million advertising and integrated marketing campaign from advertising agency BCM, interactive marketing agency Oxygen and public relations agency BBS.
The campaign includes television advertising on Channel 7 and pay TV, sponsorship of the new TV Burp television show, loyalty card letter drop, New Idea coffee giveaway, magazine advertising, mallways, offers to Donut King’s database and instore materials.
Donut King Acting Marketing Manager Andrea Gartside said the campaign was aimed at driving customer awareness and trial of the new coffee sub-brand within Donut King stores.
“This is another step in the progression of Donut King as a destination for the whole family. While kids can enjoy their donuts and milkshakes, mum and dad can sip on a great-tasting coffee,” she said.
“During the past year, we’ve been working hard to not only get the blend of coffee beans right in Royal Bean to meet the taste profiles of customers, but also investing heavily in training our store staff to brew the perfect cup of coffee.
“Coffee already accounts for a strong percentage of our store sales and with the launch of Royal Bean we’re looking to grow this further.”
As Australia's largest specialty donut and coffee chain, Donut King operates more than 315 stores across Australia, employing over 4,600 staff and serving 30 million donuts to Australians every year.
The Donut King franchise network is owned and managed by ASX Listed Retail Food Group Limited (RFG), a leading Australian retail food brand manager and franchisor. RFG is the intellectual property owner and manager of the Donut King, bb’s cafe, Brumby’s Bakeries and Michel’s Patisseries franchise systems.
Click here for more information about the Donut King Franchise Opportunities available today
16.7.09
Adding a touch of international cuisine to Australian dinner tables, Brumby’s has ventured across the globe to develop a range of international breads for household chefs.Launched in time to celebrate France’s Bastille Day on 14 July, the promotion of the worldly range of artisan breads includes French Provencale or Champagne Loaf from France, Ciabatta and Pane de Casa from Italy and Sour Dough from San Francisco.
Brumby’s Bakery Marketing Manager Michelle McBride said Brumby’s new international bread range was baked fresh in store every day.
“In the current economic climate, we’ve found our customers want delicious fresh bread with an affordable price tag, but they are also after a little luxury,” she said.
“Offering warm, fresh and crusty breads inspired by European and American tastebuds is certainly a way to satisfy the hunger for those little luxuries when times get a bit tougher.
“Apart from gourmet breads from France, Italy and San Francisco, many of our bakeries will also make Turkish bread, Bavarian Rye and Kythera.”
From 13 July to 2 August, every time a customer purchases bread from Brumby’s international bread range, they will receive a free French Bread Stick.
Brumby’s operates more than 300 stores across Australia, employing over 3,300 staff and serving more than 700,000 Australians a week.
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9.7.09
As Australians tighten their purse strings in response to the current economic climate, a new breed of ‘econo-chic’ dinner party throwers are turning to affordable, ready-to-go meal options to satisfy the hunger of their guests.
High on the list of new dinner party menu items is Australia’s humble meat pie, because of its robust flavours, generous proportions, convenience and affordable price tag.
Each year, Australians devour 260 million meat pies, averaging around 14 meat pies per person, and this number is expected to grow significantly over the next 12 months.
Michel’s Patisserie Marketing Manager Pia Harrison said in response to the emerging “econo-chic” trend, Michel’s launched a new Family-sized Meat Pie on 26 June.
“Michel’s Patisserie’s hearty, home-style Family Meat Pies are made with quality cuts of chunky beef, filled with our secret gravy and wrapped in a flaky pastry bowl.”
“In the current economic climate, more and more people are entertaining at home. Econo-chic parties are on the rise as friends realise that bringing a plate is a convenient, cheap and relaxing way to catch up with family or friends.
“That’s why we released a Family Meat Pie; they’re exceptional value, quality and convenience make them the perfect meal solution for a get together with friends or a family meal.
“As part of our winter promotion we’ve launched a Family Meat Pie and Apple Pie Combo for just $19.90*. And with the brisk, cooler months settling in, this combination is perfect for an ‘econo-chic dinner party’, because it’s cheap, cheerful, delicious and so easy!”
The patisserie is expecting to sell over a tonne of Family Meat Pies this winter season – literally using over 120,000 kilograms of quality chunky beef, 120,000 litres of gravy and 320 kilometres of pastry to keep up with the demand.
The new family meat pie joins Michel’s winter menu, which also includes a new Family Apple Pie ($7.90), and Tomato & Basil Soup and Pumpkin Soup with a bread roll ($6.90 each).
* Available until 30 July 2009
There are more than 335 Michel’s Patisserie stores operating across Australia, employing about 3,100 staff and serving around 26 million cups of coffee and 9.5 million slices of cake each year. The Michel’s Patisserie franchise network is owned and managed by Retail Food Group (RFG), a leading Australian retail food brand manager and franchisor. RFG is the franchisor and intellectual property owner of the Donut King, bb’s café, Brumby’s and Michel’s Patisseries systems.
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25.6.09
bb’s cafe will give away over $65,000 worth of free food and drink to its customers this month, as part of a new interactive advertising campaign designed to reward its customers.
The campaign, developed by Oxygen Interactive Marketing, will run from 20 June to 31 July and will operate across 60 bb’s stores throughout Australia and New Zealand.
As part of the promotion, customers who spend over a certain amount in a single transaction will receive a scratch card and the chance to win a share of $65,000 in bb’s cafe prizes.
Customers could also win $1,000 cash online by going to bb's cafe's website and entering the card’s unique code.
bb’s cafe marketing manager Brooke Daley said customers have a one in five chance of winning instantly.
“In the current economic climate, shoppers are conscious of getting more bang for their buck. bb’s cafe’s new Win Your Share of $65,000 promotion offers our customers an incentive for choosing bb’s as their local cafe,” she said.
“Whether you want something quick and fresh, or if you want to sit down and have a premium coffee while we make your lunch - bb's cafe offers the ultimate break from shopping.”
“Enjoy some of our freshly baked muffins with a perfect espresso from our signature blend, sample one of our specialty Panini breads or indulge in some of our fresh sweet treats.”
“We also use only the finest, freshest ingredients at bb’s cafe, which means our meals are just like home cooking, using recipes like mum used to use.”
Instant Win items include: Small Coffee, Small Tea, Regular Iced Chocolate or Iced Coffee, Regular Muffin, Scone, Regular Milkshake, 50ml Sassy Syrup, Cupcake, Arnott’s Mint Slice and Arnott’s Premier Melting Moments.
There are 60 bb’s cafes operating across Australia and New Zealand, employing over 500 staff and serving over 2.5 million cups of coffee a year.
The bb’s cafe franchise network is owned and managed by Retail Food Group (RFG), a leading Australian retail food brand manager and franchisor. RFG is the franchisor and intellectual property owner of the Donut King, bb’s cafe, Brumby’s and Michel’s Patisseries systems.
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18.6.09
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Donut King has exported its first shipment of roasted coffee to mainland China, as part of its growing presence in that country. Due to arrive in Shanghai in early July, the 288kgs of DK Royal Bean coffee blend will be used by the 4 Donut King stores in Shanghai. The DK Royal Bean coffee has been specifically developed at Retail Food Group’s dedicated coffee roasting facility in Sydney, called Caffe Coffee. It is used in all Donut King outlets and features a unique blend of international beans. |
The first shipment will provide more than 23,000 shots of espresso, with more shipments expected to follow later this year. More than 20 Donut King outlets are expected to be open in China by 2014.
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28.5.09
Add a little O3 to your daily bread choice
Brumby’s Bakeries has become the first retail bakery chain in Australia to launch a freshly-baked Omega 3 wholemeal loaf catering to health conscious consumers.
While some breads featuring Omega 3 are available on supermarket shelves, this will be the first time consumers can access preservative-free Omega 3 wholemeal loaves direct from a bakery which are baked fresh daily.
Research has found that Omega 3 can reduce the risk of heart disease, asthma, allergies, blood clotting, and helps maintain a low blood pressure. In babies and children, Omega 3 can aid the development of brain, eye and heart functions.
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From the stages of the world to the cakes of the world, an ex-professional ballet dancer from Shanghai, China has brewed up a new Michel’s Patisserie store in Chadstone Shopping Centre.
Michel’s Patisserie Chadstone, set to open on Friday 29 May, will offer high quality coffee, sweet treats and scrumptious savouries as part of Chadstone shoppers’ daily grind.
A graduate from the Australian School of Ballet, Michel’s Patisserie Chadstone owner David He said dancing on the world stage had fuelled his hunger to open a speciality patisserie.
“I came to Australian over a decade ago to study ballet at the Australian School of Ballet in Melbourne. It was an amazing experience, and when I graduated I moved to Hong Kong to pursue my dancing dreams,” he said.
“After an incredible career dancing on stages in France, Denmark, Austria, the USA, Korea and Swaziland, I retired and moved into the hospitality industry. I worked as the general manager for one of the biggest restaurant bars in Hong Kong called Queens. It was challenging and hectic, but I loved it.”
But the stage lights and memories of ballet lingered, and after a few years David ventured back to the stage – but this time, behind it, starting his own event production and management company. “I had had an amazing life, and then I met my even more amazing wife, and we moved to Australia to start a new life and adventure together. I bought my first Michel’s Patisserie at Eastland, and I’m excited to be adding Chadstone to my patisserie portfolio,” he said. |
Franchisee, David He with his family at their Eastland Store |
David said sweet dreams of becoming part of such a successful cake patisserie
had been brewing in his mind for years.
“Situated in Chadstone Shopping Centre [outside Aldi], Michel’s Patisserie will help Chadstone shoppers celebrate the good things with quick pick-me-ups for people on the go, or the perfect place for shoppers to relax and recharge with our unique Michel’s Espresso blend of coffee,” he said.
“At Michel’s Patisserie Chadstone, we offer over 200 tantalising bakery items and provide a catering service to suit your every occasion.
“And with winter just around the corner, we’ve got plenty of treats to help you entertain and keep warm. Our wide selection of delectable cakes can be made to order in a variety of sizes, and can incorporate personalised messages and themes for that special someone.
“We cater to all budgets and can personalise cakes for any occasion including weddings, children’s birthdays and anniversaries and we also offer the exciting option of personalised photo cakes.”
“Besides sweet treats, we also offer a wide selection of pies, sausage rolls, filo pastries and quiches in a range of sizes including cocktail, individual and family.”
There are more than 340 Michel’s Patisserie stores operating across Australia, employing about 3,100 staff and serving around 26 million cups of coffee and 9.5 million slices of cake each year.
The Michel’s Patisserie franchise network is owned and managed by Retail Food Group (RFG), a leading Australian retail food brand manager and franchisor. RFG is the franchisor and intellectual property owner of the Donut King, bb’s café, Brumby’s and Michel’s Patisseries systems.
Click here for more information about the Michel's Patisserie Franchise Opportunity
21.5.09 - Retail Food Group
Donut King & Brumby’s GO! move into service stations
Australian food retailers Donut King and Brumby’s GO! will open new stores in the lucrative service station food retail market as part of its ongoing expansion strategy, owner Retail Food Group announced today.
ASX-listed Retail Food Group (RFG) is Australia’s leading retail food brand manager and franchisor, owning the Donut King, Brumby’s Bakeries, Michel’s Patisserie and bb’s cafe franchise systems.
RFG Head of Emerging Markets, Gavin Nixon said the first outlet of RFG’s franchise systems to open in a service station was a Donut King at Allendale, Cessnock in late 2008.
He said the model had proven successful, prompting the planning of additional openings.
“Donut King already has a well recognised donut and coffee offer with a strong presence in the shopping centre retail environment,” he said.
“Brumby’s GO! represents an evolution in the life of the Brumby’s Bakeries franchise system and has been developed to meet consumer demand for on the run single serve snack items. The Brumby’s GO! concept offers baked ready-to-go products, made fresh daily onsite, using Brumby’s Bakeries tried and tested recipes.
“Entering the service station food retail market is certainly a new direction for RFG and each of the franchise systems.”
RFG has confirmed two new outlet openings in New South Wales and potentially a further five in South Australia in the next 12 months.
“Mums and kids know and understand the Donut King and Brumby’s brands, but they also appeals to the Tradesmen and the Company Representative market. Service stations’ highway position means customers can fuel up and go,” he said.
The Brumby’s GO! concept opened its first outlet in 2004 and now includes over 10 outlets throughout Australia as a sub-group within the 300 outlet plus Brumby’s Bakeries system.
As Australia's largest specialty donut and coffee chain, Donut King operates more than 300 stores across Australia, employing over 4,600 staff and serving 30 million donuts to Australians every year.
Click here for more information about Donut King franchise opportunities
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19.2.09 - Retail Food Group posts 19% profit increase
Leading Australian retail food brand manager and franchisor Retail Food Group Limited (RFG) has announced 1H09 NPAT of $10.6 million, representing a 19% (or $1.7 million) increase on the previous corresponding period (pcp) and exceeding the Company’s NPAT guidance provided on 19 January 2009.
NPAT from ‘Core Operations’ amounted to $11.1 million, up 52% (or $3.8 million) compared to the result achieved in 1H08.
Basic Earnings Per Share (EPS) for the period were 10.7 cents compared to 11.2 cents in the pcp, reflecting the impact of the non-recurring gain on acquisition of Brumby’s Bakeries realised in 1H08.
EPS from ‘Core Operations’ were 11.2 cents, representing an increase of 22% over EPS from ‘Core Operations’ in 1H08.
NEWS ITEM - MEDIA RELEASE FROM RETAIL FOOD GROUP
- 9 DECEMBER 2008
SALE OF CMF & LONG TERM SUPPLY AGREEMENT
Australian retail food brand manager and franchisor Retail Food Group Limited (RFG) today announced that it had reached an agreement with Allied Mills Pty Ltd (Allied Mills) pursuant to which the Company shall dispose of its Central Manufacturing Facility (CMF) .
The CMF, being a facility dedicated to the manufacture and wholesale supply to franchisees of donut and bakery products, was established by RFG during FY07 at Yatala within the Gold Coast - Brisbane corridor.
RFG commissioned the CMF given the manufacturing processes relevant to the large scale
production of its proprietary Donut King products were unique within Australia. The manufacturing business associated with the CMF therefore constituted a departure from RFG’s core business of developing and managing retail franchise systems.
The Allied Mills transaction contemplates:
- the sale of RFG’s interest in the CMF operations, land, building, plant and equipment which will result in a profit on disposal;
together with
- a long term supply agreement, having an initial 10 year term and guaranteeing continuity of supply of product to Donut King franchisees, whilst generating initial and ongoing licence fee income for RFG which will be immediately EPS accretive.
RFG CEO Tony Alford said, “the transactions represent a realisation of the CMF divestment strategy disclosed during the Company’s recent AGM and provides a vertical integration opportunity for Allied Mills whilst allowing RFG to concentrate on its core competency of franchise intellectual property development, enhancement and management. The business disposition and supply agreement also eliminates RFG’s exposure to product procurement, staffing and other supply side risks normally associated with the operation of a manufacturing facility”.
“RFG and Allied Mills have enjoyed a successful association dating back to the late 1980’s with the later supplying the proprietary Donut King and bb’s café pre-mix products,” Mr Alford said, “these transactions provide significant opportunity to further enhance RFG’s long term strategic supply chain relationship with Allied Mills and its associated entities including collaboration in relation to the development of both donut and other pre-mix products for introduction to all four of RFG’s franchise systems”.
“The transactions will further insulate franchisees from sudden and or dramatic input price variations, as a result of Allied Mills’ commodity risk management capability”.
“Other benefits accruing to franchisees from the transactions include continuity of product supply, lowest possible unit costs, ongoing product development and margin certainty arising from negotiated product price reviews being limited to once per annum”, Mr Alford said, “whilst also maintaining the lifestyle enhancements which first gave rise to the establishment of the CMF”.
Completion of the transaction is scheduled for January 2009 at which time RFG will apply the
entire proceeds of the transactions, some $9.5 million, toward the voluntary reduction of debt
facilities.
Mr Alford added, “voluntary application of the transaction proceeds in this manner, together with debt reduction already sourced, and to be sourced, from the Company’s free cash flow, increases available headroom under existing facilities to in excess of $30 million”.
Allied Mills is a 60:40 joint venture between ASX listed GrainCorp Ltd (code: GNC), an Australian based bulk handling company, and Cargill Australia, a subsidiary of Cargill Inc.
The joint venture was formed in 2002, and its heritage encompasses more than 100 years of
ownership in flour milling and food ingredient assets, knowledge and experience. Allied Mills is the largest manufacturer of human consumption flour and flour related ingredients in the Australian milling industry.
Managing Director of Allied Mills Joe Di Leo said, “Our company has held a strong supply
partnership with Retail Food Group for close to 20 years. It is exciting to see this partnership
evolve into an acquisition of RFG’s Central Manufacturing Facility”.
“This acquisition supports our overall growth strategy and we look forward to continuing to work closely with RFG”, he said.