Rumours of job cuts at Brisbane meal delivery firm Youfoodz

City Beat spies report that there have been a series of lay-offs over the past week at Brisbane-based meal delivery company Youfoodz, which is now facing a far more crowded playing field than when it launched in 2012.

FINANCIAL DIET

It looks like meal delivery outfit Youfoodz has gone on something of a financial diet.

City Beat spies report that there have been a series of lay-offs over the past week at the Brisbane-based company, which is now facing a far more crowded playing field than when it launched in 2012.

We hear that an arm of the business based in Salisbury shut down on Tuesday, with four staff stood down. Two digital team members were cut loose from a Geebung outpost a day earlier.

Another 22 or so marketing employees were let go last Friday, along with two workers in NSW.

We had hoped to have a chat with Karl Giles, the company’s sole director and biggest shareholder, but he didn’t return a call seeking comment yesterday.

CEO Lance Giles also didn’t respond to our message. He previously founded and ran Gold coast-based My Fit Fridge, which collapsed with debts of $1 million in 2012.

The latest drama for Youfoodz comes as the firm has had to fork out the big bucks to fight legal claims.

Youfoodz recently launched meal kits.

Last week the company won a court fight to set aside a $210,000 statutory demand for payment from its chicken supplier, Cordina Foods in Sydney. The two sides had previously been sparring over $806,000 in disputed invoices.

That followed last month’s confidential settlement of a $180,000 unfair sacking claim brought by its former head chef. Youfoodz is also defending a claim lodged by My Life Pty Ltd in the Supreme Court in January.

Market analysts expect there to be a Darwinian battle for survival of the fittest in the $500 million sector, which includes rivals such as Marley Spoon and Hello Fresh.

In a hopeful sign, Woolworths sealed a $30 million deal last week to snare a 9 per cent stake in Marley Spoon.

Less fortunate was Brisbane’s award-winning entrepreneur Ben Doolan, whose FivePointFour Holdings meal delivery enterprise crashed in March owing nearly $770,000 after seven years in the game.

STILL FUMING

Queensland’s natural gas producers are still fuming over the shock 25 per cent spike in royalties unveiled in this week’s budget by our polarising treasurer, Jackie Trad.

Adding to the angst is the fact that she had given no hint just days earlier that there would be an increase.

City Beat has learned that industry lobby group APPEA met quietly last week with Trad, who revealed there would only be a review sometime in the next year of the royalty scheme affecting the $70 billion-plus LNG sector.

APPEA then relayed that information to its members, who are now madly crunching numbers as they figure out whether looming investment plans are still worth pursuing.

Queensland Treasurer Jackie Trad. Picture: Annette Dew

APPEA boss Andrew McConville, who just presided over the group’s four-day annual conference in Brisbane last month, said it was “disappointing there was no prior consultation’’ on the issue.

“Increases in royalty rates increase the cost of gas production and undermine the long-term stability that is needed to continue to attract investment in Queensland,’’ he told your diarist yesterday.

Trad has justified the royalty increase from 10 per cent to 12.5 per cent starting July 1 as a modest impost on a fast-growing sector.

She also notes it’s the first change to the rate in a decade and will deliver an extra $476 million to the bottom line over coming years.

APPEA boss Andrew McConville. Picture: Ross Swanborough

Total royalties from the natural gas industry are tipped to exceed $2.5 billion over the next four years.

Energy broker Make it Cheaper Australia also weighed in on the royalty boost yesterday,

“It is concerning to hear of new pressures on already high energy costs for Australian residents and businesses, particularly those which have a high gas usage in their homes or as part of their operations,’’ boss Fred van der Tang said.

Jackie Trad could be forgiven for wanting to move to Melbourne

YouFoodz stoush with chicken supplier over $806,000 in alleged unpaid invoices

Youfoodz head chef drops $180,000 suit and signs a ‘deed’