Food trends, vegans boost RFG profits
DOUGHNUT fries and vegan pizzas have helped dish up a 27 per cent higher helping of revenue for listed Gold Coast food franchise giant Retail Food Group.
An award-winning mobile game which turned customers into “donut warriors” was also lauded in the annual report for the company, which operates shopping centre staples Gloria Jeans, Donut King, Michel’s Patisserie and Brumby’s, as well as the popular Pizza Capers and Crust chains and more.
Southport-based RFG reported $349.3 million in revenue, up from $275.1 million the previous year for a net profit of $75.5 million – 14 per cent higher than FY16.
Chairman Colin Archer said the company’s network of 2516 outlets had spread across 81 international territories and was supported by a significant coffee-roasting business and new commercial division, which was generating additional and diversified revenues and bolstering future earnings.
RFG’s commercial division, created after it acquired food delivery group Hudson Pacific for $88 million last year, contributed 10 per cent, or $11.8m, to underlying group earnings, he said.
The group will further spread its reach this financial year, with a new hub to tap into new coffee opportunities throughout the Middle East and North Africa.
Shareholders of RFG received total dividends for the year of 29.75 cents per share, an increase of 8.2 per cent on the prior period.
Donut Rush, an app developed on the Gold Coast, reached the number one position on both the Google Play and Apple App Store platforms within its first week of launch, overtaking app giants Gumtree, eBay, Skype and Twitter.
It had more than 400,000 downloads and users played the game for more than 30 million minutes.
Donut King received a highly commended award for the app at the 2017 AC & E Awards, held at Luna Park in Sydney last week.
RFG chief digital officer, Kevin Wordon – who headed up the development of the app with leading app development company, Millipede — said it was validation of the company’s focus on engagement marketing and digital innovation.
“Data shows our customers were engaged with the brand via the app for eight minutes and 38 seconds per session, which when put in perspective, is 17 times the length of a 30-second ad,” he said.