Always enjoy reading an RFG presentation update. They set the standard for the retail industry.

I always come away thinking these guys really have this industry totally figured out; to the point where their presentations should be studied by marketing courses for its comprehensive depth of detail.

.From customer research they seem to know what the customer wants, and they lay out a plausible plan/strategy to achieve same. So, what goes wrong, because the depth of 'knowledge' just doesn't seem to hit the RFG cash register?

My general answer (without research proof) is as follows:

(1) The franchisor/franchisee model itself. No matter what the expertise of the franchisor & its systems, the attitude and approach of the franchisee will determine success or otherwise. It always comes back to people. Customers are people, franchisees are people, staff are people. Franchising is about systems, and it's a critical error to think that the people operate the systems (perfectly) to allow the systems to drive the business.

(2) Site selection and franchisee selection are critical to success + constant monitoring that the existing systems are followed to the letter of the law. It's why I favour a strong company store bias PROVIDED it has a very strong staff incentive plan in place. They need to be heavily incentivised to chase the extra dollars of sales every day. 

(3) RFG cannot escape it - its nationally known past shame and failure. Whilst they appear to want to refresh everything else, it beggars belief they don't refresh the brand name. RFG of today is totally different to yesterday, so why do they continue to carry that past cross of failure? 

Overall, they appear to be headed in the right direction and I am pleased that Beefy's (their latest acquisition) is doing well with an introduction of the pies into Gloria Jeans (SEQ).

It's still a watch & observe situation for me, but there are a few green shoots emerging & RFG believe FY25 will see an improved retail outlook for the coffee, cafe & bakery (CCB) portfolio, but continued pain in the Quick Serve Restaurant portfolio (QSR). They cite higher wages with government efforts to 'soften costs of living' as purse additives, but I wonder how much of the 'extra' will go down the interest gurglar.