Jobs go in RFG revamp: Focus on franchising with 20 per cent growth forecast

GOLD Coast-based Retail Food Group has made 68 operations staff redundant and given them 24 hours to put their hands up for 60 newly created positions, as part of a massive restructure.

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GOLD Coast-based Retail Food Group has made 68 operations staff redundant and given them 24 hours to put their hands up for 60 newly created positions, as part of a massive restructure.

Operations staff from every brand across the group received letters confirming they had been made redundant yesterday.

“As a result of RFG’s rapid growth, the highly competitive Australian retail sector and feedback from franchisees and customers, we have identified the need to change our service model from operations and compliance to best support franchise partners, focusing on growing their business and enhancing their capability,” the letters said.

“As a result of this organisation review, regretfully your current role no longer exists.”

The owner of Gloria Jeans, Brumby’s Bakery, Donut King and Crust Pizza chains, RFG posted a net profit increase of 34.4 per cent to $28.86 million in the first half of the year.

Underlying first-half net profit rose 27.1 per cent to $32.1 million, putting it on track to reach full-year guidance of 20 per cent growth.

Affected staff have been given two options — to apply for one of the new sales and performance positions or apply for a newly created franchise care centre position.

Staff who had not indicated their intention to apply for one of the new positions by 4pm yesterday were advised they would be made redundant, with final payments to be processed from today.

RFG CEO franchise and managing director elect Andre Nell.

The letter said affected staff were not required to attend work “following receipt of this letter while you are considering these options”.

RFG CEO franchise and managing director elect Andre Nell said the jobs cuts were in response to the evolving retail landscape.

He said RFG would redeploy resources from an operations focus to sales and business mentorship.

RFG recently hit a milestone of 2500 outlets, with brands including Brumby’s Bakery, Crust Pizza and Pizza Capers.

Gloria Jeans, Di Bella Coffee and ­Cafe2U were acquired by RFG during the 2015 financial year as part of its aggressive expansion program.

Under managing director Tony Alford, RFG has become Australia’s largest owner of retail food franchises.

Mr Alford will step down on July 1. He will remain a non-executive director as Mr Nell takes control.

Mr Nell said the new national sales and performance division was the first of its kind in the country’s retail food franchising sector.