Retail Food Group's business model thrives despite economic conditions
Leading Australian retail food group and franchisor Retail Food Group (ASX:RFG) has today announced that retail trade performance of its franchise systems for the first two months of 2H09 has witnessed a continuation of the strong performance achieved to the 31st of December 2008.Retail Food Group is the intellectual property owner and manager of the successful Donut King, Michel’s Patisserie, Brumby’s Bakeries and bb’s cafe franchise systems.
The January 2009 year to date Key Performance Indicators (KPI) performance (on a weighted average basis across all systems) achieved:
- Network sales growth of 5.98%
- Average Weekly Sales (AWS) growth of 5.75%; and
- Average Transaction Value (ATV) growth of 6.56%.
RFG CEO Tony Alford said, ‘notwithstanding adverse retail conditions, operational performance of our franchisee community is both robust and encouraging given the Christmas and New Year trade provides the stimulus and platform for full year Company outlook”.
Profit forecast upgrade
“Absent any significant deterioration in market conditions affecting our systems, all of which have to date evidenced considerable resilience to external adverse economic forces, RFG is confident of achieving a minimum FY09 full year NPAT of $21m, representing a 19.5% increase over FY08 NPAT of $17.6m”, Mr Alford said.