RFG reports growth and is in talks to acquire two new brands
Attributes growth to acquisitions.
RFG reports a 15.2% increase in Net Profit for FY14.
RFG Chairman Colin Archer indicated that RFG’s FY14 performance was driven by the successful implementation of previous strategic decisions which are now bearing significant fruit, specifically the acquisition of the Pizza Capers and Crust Brand Systems.
“Of particular note, the Company’s resolve to enter the Quick Service Restaurant (QSR) segment via acquisition of the Pizza Capers and Crust Brand Systems has proven a masterstroke, with QSR contribution to Group EBITDA now representing 22.7%, or $13.5m. Importantly, neither Brand System has reached maturity, thereby affording the Company significant potential for new outlet growth which is presently being driven by RFG’s Project QSR400 initiative.”
RFG CEO Tony Alford noted that organic growth of 150 new outlets in FY14, represented both record QSR and traditional outlet growth of 85 and 65 (respectively).
“Project Evo has garnered significant traction and fast-tracked pizza outlet proliferation throughout the Australian market. Importantly, the project continues to generate significant interest amongst potential franchisee candidates, with FY14 lead generation exceeding 400 enquiries”, he said.
Gary Alford, Director of Franchise at RFG shared to QSR Media, "FY14 witnessed the establishment of Michel’s Patisserie and Brumby’s Bakery Project Evolution pilot outlets, as well as the further proliferation of Evo concept for Donut King built upon the establishment of the first Donut King drive thru outlet. We now have more than 110 EVO outlets established across our Brand Systems. As EVO attributes are backfilled into existing outlets, we are seeing very positive results in respect to sales uplift, franchisee and customer engagement."
NEW ACQUISITIONS
RFG also announced its entry into Share Purchase Agreements (SPAs) to acquire the 236 outlet Cafe2U mobile coffee franchised Brand System, and 70 outlet La Porchetta casual dining franchised Brand System.
Alford noted that, “these transactions represent the culmination of significant and wide-ranging acquisitive opportunity investigation and due diligence activity undertaken over the course of the past 18 months, and demonstrate RFG’s commitment to supplementing organic growth via acquisition of quality complementary Brand Systems capable of generating enhanced earnings and increased scale."
The acquisition complements RFG’s November 2012 acquisition of The Coffee Guy Brand System, while the acquisition of La Porchetta represents a further strategic expansion by RFG into the casual dining segment following its successful acquisition of Pizza Capers and Crust Gourmet Pizza in the same year, he added.
"The very successful entry of RFG into the QSR category, and the commendable performance of Pizza Capers and Crust Gourmet Pizza over the past two years, is now augmented through the La Porchetta transaction, further consolidating the Company’s position as a genuine retail food leader in Australia and New Zealand with strong platforms and iconic Brand Systems across light meals, treat, specialist coffee, QSR and now Casual Dining.”
Upon settlement of both transactions, RFG outlet population will increase by 20% to 1,750, from 1,434.
