Down by a third: RFG on hunt for reduced premises
SLIMMED down food franchisor Retail Food Group is looking for new offices on the Gold Coast, a third smaller than its current footprint.
The Donut King owner, which has seen its market capitalisation slashed in the wake of reports of mistreatment of franchisees, currently has 3485sq m of space across two locations – 18 Commercial Dr, Ashmore, and 1-3 Olympic Circuit in Southport.
Yesterday CBRE issued a market brief to agents and landlords asking them to submit options to accommodate the 2500sq m RFG requirement on a long-term lease with a minimum of five years.
The brief says it is looking for a central Gold Coast location close to amenities and transport options.
RFG, which has been moving staff from Commercial Drive to Olympic Circuit as it restructures, has leases on both properties expiring early next year.
The CBRE brief calls for expressions of interest by the end of next week.
A spokeswoman for RFG said restructuring remained a priority for the business.
“It is all about creating a more agile, customer-focused business closer to the needs of our franchisees,” she said.
“This also includes looking at our lease arrangements for 2020 and beyond.”
She said most of the staff from the Ashmore office had been brought to Southport.
“Recent restructuring initiatives have made that possible and we are now able to bring together the staff from both our Ashmore and Southport offices.
“The floor space in the Olympic Circuit premises has been modified enabling the combined staff to work more closely and efficiently.”
She said the requirement for 2500sq m will suit the needs of the business for the next five years.
RFG put three commercial properties, including a vacant cold storage facility at 24 Octal St, Yatala, on the market in 2017, after seeking to centralise its operations at the former Bulletin headquarters in Molendinar.
The 18 Commercial Drive property was bought by a company linked to former CEO Tony Alford and fellow former executive Alicia Atkinson for $2.075 million.
RFG did not make the planned move to Molendinar after the business was severely hit by allegations of damaging franchise models leading to ruined livelihoods for franchisees.