Retail Food Group set for huge expansion in UK market

RETAIL Food Group has released more details of its expansion to the United Kingdom, which it hopes will help boost the company as it continues to battle fallout from criticism of its franchise system.

The Southport group plans to open 250 Crust Gourmet Pizza Bars and 140 Donut King outlets in the UK in the coming decade, with the first to open its doors within eight months.

Jabbar Mumtaz, who bought the master franchise rights for Donut King and Crust in the UK, believed both brands would be well received there.

“RFG and its brand systems have a great reputation, a quality product offering, and fantastic benefits for partners and I look forward to working with the company and introducing locals to pizza and doughnuts like they’ve never experienced,” he said in a statement.

Mike Gilbert, who heads the company’s international operations, said the UK was an important global market for RFG following the establishment of international hubs in Australia, the US and Middle East.

That reputation has taken a beating in the past month, since franchisees went public with claims they were being charged unsustainable fees, which had led to staff underpayment and bankruptcies.

RFG announced its second profit downgrade in a month on Tuesday, in a statement that said profit for the first half of this financial year would be “less than” the $22 million previously announced – which was already 34 per cent down from the same period last year.

The company attributed the unspecified decline partly to a change to the UK deal, which meant proceeds of the sale weren’t available until after December 31. It also blamed “further consideration of additional transactional matters” for the latest guidance.