Retail Food Group (RFG)

Shares / Stock Code

RFG

Stock Exchange / Sharemarket

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Retail Food Group (RFG) was first established in 1989 for the purposes of developing and managing the Donut King and BBs Coffee & Croissants franchise systems. The BB’s Coffee & Croissants system would later evolve into the current bb’s cafe system. Following its establishment and throughout the 1990s, RFG focussed on growing the foregoing brands throughout Australia. The BB’s system was also established in New Zealand. Investors can trade Retail Food Group shares on the Australian Stock Exchange (ASX).

Much of the initial growth of both the Donut King and BBs systems was achieved via the use of a master franchisee structure which was ultimately dismantled in 2003. During the period 1999 to 2004, RFG also acquired the world intellectual property rights to the Donut King system and the world intellectual property rights (excluding Europe) for the BB’s system.

Retail Food Group was incorporated in 2003 to act as the ultimate holding company of the fast growing RFG group of entities. The company was later admitted to the Official List of the Australian stock market on 20 June 2006 and quotation commenced two days afterwards.

Whilst RFG had become a recognised leader in retail food franchising prior to 2006, since quotation of its securities on the ASX it has truly cemented itself as a market leader by demonstrating the strength of its unique business model and strong management.

The Company has returned significant value for its shareholders by not only exceeding Prospectus forecasts and driving positive shareholder outcomes, but also delivering strong outlet and sales growth (both at system and store level). The Company has also delivered upon the strategic growth initiatives outlined in its May 2006 Prospectus by completing the acquisition of the then 321 outlet strong Brumby’s Bakeries franchise system in September 2007.

This was later followed by the acquisition of the then 346 outlet strong Michel’s Patisserie franchise system in December 2007, subsequent to that the aquisition of the Queensland based Big Dad's Pies franchise system, making Retail Food Group one of the largest retail food franchisors in Australasia.

Retail Food Group's Philosophy

Retail Food Group’s philosophy is two fold and in part represented by the ‘Strength in Brands’ tag line associated with the company’s logo.

In the first instance, RFG is of the view that by assembling, enhancing and growing a fortress of strong, vibrant and profitable retail food franchise systems whose menu is consumer relevant, innovative, and above anything else, demands patronage, not only does the company safeguard its own future, but just as importantly, it insulates and fortifies the franchisees of each of its systems.

‘Strength in brands’ essentially allows for economies of scale, cross pollination of products, collaborative marketing initiatives, co-branding and leveraging RFG’s proven management systems and growing national presence to take advantage of significantly increased scale.

Secondly, RFG appreciates that its success is dependent upon the success of its franchise systems and the many franchisees who operate under them. Consequently, the Company acknowledges and embraces its symbiotic relationship with its franchisees and is committed to delivering sustained value and satisfaction for its franchisees and their customers.

The company’s philosophy can be summarised by the desire to ‘continue to develop the organisation as a leader and innovator in retail food systems management in order to provide benefits to all stakeholders by maximising complimentary opportunities and delivering real value for their customers’.