The Retail Food Group (RFG) has rejected the ongoing allegations and media reports on its finances and treatment of franchisees.
The company who owns Gloria Jean’s, Donut King and Brumby’s Bakery was recently accused of running franchisees and its brands into the ground through brutal business practices.
“RFG does not consider this coverage accurately reflects the strong platform for growth it has established to assure a sustainable long-term future for its business and those of its franchisees, as well as other stakeholders,” RFG said to AAP.
According to a company statement, the media coverage doesn’t accurately reflect the strong platform for growth they have established to assure a sustainable long-term future for its business and those of its franchisees, as well as other stakeholders.
The food and beverage company’s latest operational performance was provided at the Annual General Meeting on 30 November 2017. Their first 18 weeks’ domestic weighted Same Store Sales growth of +0.7% and Average Transaction Value growth of +1.9%.
“RFG’s franchise operations are and remain an important aspect of the Company’s increasingly diversified business model. [We] remain a passionate proponent of the strength and vibrancy of the full format franchising model, and considers the benefits provided by an established brand, proven systems and ongoing support enhances the opportunity for small business owners to achieve success,” RFG said in the same statement.
RFG said they have invested in business intelligence, digital capability, product innovation and supply chain improvements. In June 2017, the company’s new managing director and executive team initiated a business-wide review, supported by Deloitte.
The food and beverage company said they are taking a disciplined approach to wage non-compliance within its franchise systems and have also implemented initiatives to combat employee entitlement non-compliance including the RFG Foundations program, which has been developed in collaboration with the National Retail Association.
