RFG REBOUND TESTAMENT TO LEADERS

THREE years ago, as listed Gold Coast franchisor Retail Food Group lurched from crisis to crisis, the thought of the company surviving for this long – let alone returning to profit – may have seemed somewhat fanciful.

The group, once a stock exchange darling and pride of the Gold Coast corporate set, had sunk into a fiery pit of plummeting earnings, deserting franchisees, circling banks, $263m in debt and a public image that stunk worse than a Boxing Day wheelie bin.

When executive chairman Peter George arrived in 2018, the third chairman in a month, it would have been difficult to know where to start.

Flash back to the past year and 17 new outlets have launched, even as Covid-19 restrictions cruelled retail businesses along the east coast.

It’s a credit to Mr George and his team that the company, which directly employs 120 people on the Gold Coast, was able to post a $1.5m net profit. The fact it happened during a pandemic, when up to 110 stores at a time have been closed, is remarkable.

For a time, RFG was rightly and roundly criticised for its mistreatment of its franchisees, many of whom lost their businesses through the actions of the group and its former management.

The company has not escaped the ramifications of that treatment, with the Federal Court set to decide its fate in the ACCC’s unconscionable conduct case. An adverse finding could lead to a fine that could materially affect RFG’s ability to carry on.

Those driving the RFG bus have demonstrated a commitment to building a company that brings along its franchisees, permanent staff and shareholders for shared success. Let’s hope they have the chance to keep driving.