Brumby’s Bakery on chopping block as RFG posts loss

Gold Coast food franchisor Retail Food Group is considering a sale of its Brumby’s Bakery chain after announcing a loss of nearly $15 million for 2024-25.

The Robina-based company, which owns a suite of franchises including Michels Patisserie, Gloria Jeans, Di Bella, Brumby’s Bakery, Crust Pizza, Pizza Capers and Donut King, says it will be focusing its growth efforts on five key brands.

The company, which is touted as Australia’s largest multi-brand retail food franchise owner with around 1250 outlets in 30 countries, announced the change in strategy after it posted earnings before interest and depreciation of $29.6 million.

However the company reported a full-year loss of $14.98 million with the bottom line hit by a $12.2 million write-down in the value of Brumby’s Bakery and the $15.7 million of a company restructure.

RFG said it would now focus its efforts on five brands: Gloria Jeans, Donut King, Crust Gourmet Pizza Bars and two new additions to its offerings; Beefy’s Pies and Firehouse Subs.

In February this year the company announced that it had signed a development agreement to introduce popular US brand Firehouse Subs to Australia and open 165 restaurants over the next 10 years.

The company said it now had key staff members in place for the new venture, and the first Firehouse Subs store would open in 2026.

Meanwhile the company’s purchase of Beefy’s Pies is paying off with the brand expanding. Network sales rose 16.6 per cent during the year, same-store sales rose 5.1% and the company had opened five new stores. RFG says it has a target of 50 Beefy’s Pies stores by 2028.

However, Brumby’s Bakery is no longer seen as a core brand for the company. RFG purchased Brumby’s Bakery in 2007, but the company’s priorities have now changed.

“Brumby’s Bakery has been assessed against our strategic growth pillars and, given our other growth priorities, we are investigating options for divestment in FY26,’’ the company said.

RFG chief executive officer Matt Marshall said the company had been pleased to record a second consecutive year of revenue growth.

“Our sales momentum is gaining pace as retail conditions improved in (quarter 4) and into FY26, with the ongoing simplification of our brand portfolio and prioritisation of growth opportunities positioning the business for sustainable long-term performance,” Mr Marshall said.