Retail Food Group reports robust sales, plans expansion in 16 countries
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Multibrand food chain franchisor Retail Food Group says sales across its domestic network have grown 16.5 percent in the first 21 weeks of this year.
The company owns and operates Gloria Jean’s, Crust Gourmet Pizza, Donut King, Brumby’s Bakery, Cafe2U Michel’s Patisserie, Pizza Capers, and The Coffee Guy.
In August, the business reported that its tax-paid profits increased threefold to $5.3 million in its full-year results.
Continuing into the new financial year, same-store sales are up by 20percentt with Donut King performing exceptionally well, up by 47.6 percent.
Customer visits to stores have grown by 20.6percentt during the quarter to date, although staffing shortages are an ongoing issue for many outlets.
To alleviate operational pressures, the company says it has launched a baker recruitment program in partnership with the state-based TAFEs to create career opportunities.
For the first half of this year, 32 new outlets were opened while an additional 50 stores are planned across 16 countries in the remainder of FY23 (which includes four new US-based Gloria Jean’s drive-thru outlets).
In its international division, the company has reported that restructuring activity and improved trading conditions boosted underlying EBITDA by 35.5 per cent last financial year.
Questions & Answers
Q.What specifically caused the increase in the company's underlying EBITDA in its international division last financial year?
What specifically caused the increase in the company's underlying EBITDA in its international division last financial year?
The company reported that restructuring activity and improved trading conditions contributed to the boost in underlying EBITDA within its international division during the previous financial year.
Q.How much have customer visits to the Retail Food Group's stores increased recently?
How much have customer visits to the Retail Food Group's stores increased recently?
Customer visits to the company's stores have grown by 20.6 percent during the quarter to date. This indicates a significant rise in footfall across their various brands.
Q.Which of the Retail Food Group's brands is currently showing the strongest growth in same-store sales?
Which of the Retail Food Group's brands is currently showing the strongest growth in same-store sales?
Donut King is performing exceptionally well, with its same-store sales up by 47.6 percent. This makes it the strongest performer in terms of same-store sales growth reported.
Q.What is the company doing to address the ongoing issue of staffing shortages across its outlets?
What is the company doing to address the ongoing issue of staffing shortages across its outlets?
To alleviate operational pressures from staffing shortages, the company has launched a baker recruitment program. This initiative is in partnership with state-based TAFEs to create new career opportunities.
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