,Australia

Retail Food Group's revenue slumps 6.5% in H1 2020

Same-store sales across its brands lowered by 2%.

Amidst its ongoing turnaround plan, Retail Food Group (RFG) posted a 6.5% year-on-year decline in revenue to $179.5 million from $192 million in H1 2020.

Sans discontinued businesses, revenues were up by $3.7m to $151.4m in the six months ended December 2019, attributed to its manufacturing brand Dairy Country, which saw a revenue jump of almost 20% year-on-year.

Same-store sales (SSS) across all RFG brands system, not including the discontinued businesses, have moderated to 2% in the period, said to be “highly influenced” by “unique” challenges to its Michel’s Patisserie chain.

Excluding the bakery chain, Donut King stood out amongst brands with 1.1% SSS growth.

Moreover, revenues of their brands system were down $10.1m, bogged down by store closures.

“Given the tough retail climate in which the Group’s franchise networks participate, these results demonstrate the growing traction of new product and campaign activity and provide momentum for the 2H20, during which a variety of marketing activations will serve to bolster Same Store Sales performance,” executive chairman Peter George said in a recent disclosure sent to the ASX.

Last December, the company completed its capital restructure, which addressed its debt burden.

“The Company now enjoys a sustainable debt facility, together with a liquidity buffer that provides stability whilst management implements various performance improvement initiatives,” George exclaimed.

In H1 2020, 73 outlets and 10 mobile vans were closed and there were no new outlets opened. The company operated a total of 667 total international outlets across 66 markets.

Starting the new year, RFG settled to dispose of its Hudson Pacific Foodservice estate on 3 January.

Photo Credit: Donut King Facebook

Join QSR Media Australia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The “combined” concept features the operator’s PappaRich, NeNe Chicken, Hokkaido Baked Cheese Tart and Kurimu brands.
This reliable equipment makes pebble ice – a midpoint between fast-ice and the classic flake ice. 
The sandwich chain sold almost 357,900 additional cookies in 2021 compared to 2020.
Adopting data-backed solutions can spell the difference between savings and losses.
Last December, the brand teamed up with Budgy Smuggler to create Footlong and Six-Inch swimwear.
The unmanned store chain, located in Wirye New Town, is selling about 120 kinds of products.
Founded in 2017, it already has a presence in ten countries, including the US, UK and Australia.
This was inspired by tennis player Ash Barty, who coined the feed the "unofficial dish" of the Aussie Open.
The initiative comes as Aussies increasingly search for the single-use items.
The fast food chain first tested the Beyond Meat product in August 2019.
The range is available from $55 exclusively at Budgy Smuggler stores and online.
The chain initially had a pop up in the town early last year.