Former boss says old Coast firm has lost way
RETAIL Food Group needs to change its business model so it works not just for the company but franchisees also, founder Murray d’Almeida says.
The BPS Technology chairman founded what is now called Retail Food Group in the 1970s as Donut King Pty Ltd.
The company changed its name in the late 1980s to reflect its growing number of brands.
Mr d’Almeida said he travelled to the UK in the 1990s to spread the brand in Europe, setting up 100 stores in the UK and Germany.
“While I was away Tony Alford had got in there and taken control,” he said.
He left in 1999 with Mr Alford firmly ensconced at the top.
Mr d’Almeida said the RFG model is flawed, because it is too heavily weighted in favour of the franchisor making money, rather than the franchisees.
“As the founder, and I successfully grew it over 20 years to several hundred outlets, it was a success because the business model worked for all stakeholders,” he said.
“The business model now is where management has taken that equitable business model and it now has a weighting that is not on the basis of all stakeholders being able to thrive.”
Mr d’Almeida said he believes the company has a future, if the issues are addressed. “It definitely has a future but the business model needs to be based on equity so all stakeholders thrive in the system.”
An RFG spokeswoman said the company is committed to seeing its franchisees succeed.
“We remain committed to the livelihood and profitability of each and every one of our franchise partners, as our futures are interlinked: if they succeed, then so do we,” she said.
“Comments made by those who have had no involvement in RFG’s business for many years, in some cases over a decade, are neither helpful, nor, we would suggest, based on a proper understanding of all of the appropriate facts and details”.