Retail Food Group to cut staff working hours
The company said it remains focussed on supporting franchisees during this time.
Retail Food Group (RFG) is consulting with personnel to either stand down or reduce the working hours of the majority of staff, the company said in a statement sent to the ASX.
Whilst noting the performance of Brumby’s that has continued to exceed expectations over the past few weeks, recent trading data is said to have supported management's expectations for a significant reduction in customer count across the group's domestic franchise network.
"A large majority of our franchise partners are facing an extremely difficult trading environment, particularly within shopping centres, as consumers react to the increasingly onerous measures taken by government, and of course are focused on more immediate issues such as their and their family's health and safety," RFG executive chairman Peter George said.
"As a responsible franchisor it is necessary for us to take a long-term and pragmatic approach to best assure the future sustainability of our franchise network for all stakeholders, to ensure our costs are reduced to match our anticipated revenues in the foreseeable future, and to best position RFG and its franchise network for a return to less challenging times.”
George said RFG remains focussed on providing “practical and meaningful support” to franchisees, including financial assistance for those “who require it most” whilst continuing to monitor the preventative actions taken by government and regulators in the markets where they operate in.
RFG employs around 500 people directly, whilst its franchisees employ thousands of staff.
