Future unclear for RFG stores

THE future of Gloria Jean’s Coffees, Donut King, Brumby’s Bakery and Pizza Capers stores in Townsville remains unclear.

The embattled Retail Food Group – which owns the franchises – plans to shut 160- 200 of its stores by mid next year.

The company has not revealed how many of each of the franchises will close.

Throughout Townsville there are numerous Retail Food Group outlets, including three Gloria Jean’s Coffees outlets.

When contacted by the Townsville Bulletin most of the franchises said they had been told they were not able to comment.

However, one manager, who did not wish to be named, said they had been told their store would be safe.

“But you never know,” they said. “It’s all pretty quiet at the moment so we have to wait and see.”

In a business update at the start of this month, Retail Food Group said the outlets closing was “predominantly due to unsustainable rent and declining shopping centre performance”.

The company’s shares plummeted last week after the announcement.

An RFG spokeswoman said the company was undertaking a whole of business review, assisted by Deloitte.

“An important component of this review is looking at the sustainability of our franchise network across Australia,” she said.

“The review identified between 160 to 200 of our domestic outlets that are unsustainable on a long- term basis and will cease trading before the end of June, 2019.

“It’s important to note that we are not forcing anyone to close their store. The majority of those franchisees with stores identified as being unsustainable have already indicated that due to rent pressures and declining shopping centre performance, they will not renew their lease.

“We are working closely with impacted stakeholders,” she said.