Franchisor Finds Way To Beat Gloom

Australian Food:

Leading Australian retail food brand manager and franchisor Retail Food Group Limited (RFG) today announced a 134% increase in net profit in spite of the recent economic turbulence which has hit consumer confidence.

The owner of the Donut King, Brumby’s Bakeries, Michel’s Patisserie and bb’s café franchises saw growth stimulated by their purchases of Brumby’s and Michel’s and a record number of new store commissionings (61).

There is now a total of 1,052 franchised outlets under RFG’s four franchise systems comprising:
• 307 Donut King outlets (a net increase of 18 outlets on previous year)
• 329 Brumby’s Bakeries outlets (a net increase of 8 outlets on previous year)
• 348 Michel’s Patisserie outlets, (a net increase of 6 outlets on previous year), and
• 68 bb’s café outlets (a net decrease of 3 outlets on the previous year).

RFG Chairman John Cowley said the Company had exceeded management’s expectations during the past 12 months. “The Company has now fulfilled all aspects of the strategic growth plan outlined in RFG’s May 2006 Prospectus, delivering upon its commitment to shareholders and transforming itself into a genuine market leader within the retail food franchising industry,” he said. “Not only has the Company added two successful and highly recognized franchise systems to its portfolio in Brumby’s Bakeries and Michel’s Patisserie, it has continued to achieve consistent and sustainable growth in new outlet openings, outlet average weekly sales and outlet average transaction values.”