Retail Food Group (RFG), the parent company of Michel’s Patisserie, has announced the retirement of the iconic bakery and café chain after facing significant trading challenges. Operating 19 Michel’s franchises across New South Wales, Queensland, and Victoria, RFG plans to close all existing stores and convert them into its other brands, such as Gloria Jean’s or Donut King.
Despite its long-standing presence in Australia’s retail food sector since 1980, an assessment revealed barriers to future growth, prompting RFG to shift focus. Franchise owners will be given the option to transition to one of the core brands to enhance business prospects. RFG has expressed gratitude to its franchise partners for their commitment and aims to support them through this transition.
At its height, Michel’s Patisserie boasted over 300 locations, but a recent report indicated a 19 per cent decline in network sales. Furthermore, the company faced legal scrutiny from the Australian Competition and Consumer Commission regarding franchise operations, which led to substantial repayments to franchisees.
Now, RFG is concentrating on consolidating its core brands, seeking to deliver better long-term outcomes for its stakeholders while acknowledging the challenges faced by the Michel’s brand.