Retail Food Group (RFG) is preparing to sell its iconic Brumby’s Bakery chain after the brand contributed to a $12.2 million impairment in FY25. The move follows RFG’s total statutory loss of $14.9 million for the 2024–25 financial year, marking a major shift in the company’s franchise strategy.
Brumby’s Bakery, once a household name across Australia and New Zealand, has struggled to maintain relevance in a highly competitive retail food market. RFG confirmed the bakery no longer aligns with its growth strategy and is now exploring divestment options, though it noted there is no guarantee of an acceptable offer.
Despite Brumby’s decline, RFG’s broader portfolio showed mixed results. Group sales grew slightly to $505.4 million, while same-store sales fell by 0.2%. However, Beefy’s Pies was a standout performer, increasing sales by 13.6% to $102.7 million, and group earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 1.7%.
Brands under the RFG umbrella include Gloria Jean’s, Donut King, Michel’s Patisserie, Crust Pizza, and Beefy’s Pies. Collectively, they helped offset some of the losses linked to Brumby’s.
Looking forward, RFG plans to restructure its operations by shifting company-owned stores to franchise partners or closing underperforming locations. It is also banking on expansion through its stronger performers, particularly Beefy’s Pies, and the Australian launch of Firehouse Subs. The U.S. sandwich chain is expected to open its first store in mid-2026, with up to 165 outlets planned over the next decade.
RFG currently operates around 1,250 stores in 30 countries, opening 38 new stores in Australia and 93 internationally in the past year.
The proposed sale of Brumby’s Bakery signals a renewed focus on scalable, high-performing franchises. How successfully RFG divests Brumby’s and executes its new brand rollouts will be closely watched as indicators of its future direction in the Australian franchising sector.
(source: 9News)
