After several tough years, the parent company of Australian bakery and cafe chain Michel’s Patisserie, Retail Food Group (RFG), has decided to retire the iconic brand.
This move will see all existing Michel’s Patisserie stores shut down and converted into other RFG brands, such as Gloria Jean’s and Donut King.
A Look Back at Michel’s Patisserie’s History
Michel’s Patisserie was first opened in Australia in 1980 by French pastry chef Michel Catteon. At its peak, the brand had over 300 locations across the country.
However, in recent years, the brand has faced significant challenges, including a decline in network sales and a court battle with the Australian Competition and Consumer Commission (ACCC) over claims that RFG sold franchises knowing they were operating at a loss.
What’s Next for Michel’s Patisserie Franchisees?
RFG has confirmed that it will offer franchise owners the opportunity to convert their stores into either Gloria Jean’s or Donut King.
This move is seen as a way to help franchisees transition to a more sustainable and profitable brand.
“We believe that each of the Gloria Jean’s and Donut King brands provide exciting opportunities and a compelling option for Michel’s Patisserie Franchise Partners considering their immediate or longer-term business futures,” said an RFG spokesperson.
Why is Michel’s Patisserie Closing?
The decision to close Michel’s Patisserie comes after RFG reported a 19% decline in network sales.
The company has stated that its core brands, such as Gloria Jean’s and Donut King, are outperforming its legacy brands, like Michel’s Patisserie.
As a result, RFG has decided to focus on its core brands and convert non-core brand outlets into stronger performing core brands.
A New Era for RFG
The closure of Michel’s Patisserie marks a new era for RFG, as the company looks to focus on its core brands and drive growth. In the financial year ending June 2024, RFG generated a net profit of $5.8 million.
The company is confident that its brand consolidation project will help to drive future growth and profitability.
What Does This Mean for Customers?
For customers, the closure of Michel’s Patisserie means that they will no longer be able to visit their local store.
However, RFG has confirmed that it will be converting existing stores into Gloria Jean’s or Donut King, so customers will still be able to enjoy their favorite treats and drinks under a new brand name.