Australia – The parent company behind Donut King, Gloria Jean’s, Crust Pizza, and Beefy’s Pies, Retail Food Group (RFG), is reportedly exploring options to sell the Brumby’s Bakery chain, following disappointing financial performance in FY25.

RFG reported a statutory net loss after tax of $14.9 million, compared to a $5.8 million profit in the previous year, primarily due to a $12.2 million impairment on Brumby’s Bakery and related restructuring costs. Despite a revenue increase of 8.5% to $143.2 million and a 1.7% rise in underlying earnings, the gains were offset by a $15.7 million one-off restructuring charge.

Company Strategy & Franchise Focus

RFG chairman Peter George confirmed the company is “shifting focus” from underperforming legacy bakery brands to higher-growth ventures, including Donut King, Gloria Jean’s, Beefy’s Pies, and the forthcoming Australian launch of Firehouse Subs. This strategy follows earlier moves to phase out Michel’s Patisserie, converting remaining locations to Gloria Jean’s or Donut King outlets.

The company will retain direct control of select stores, including Donut King Burleigh Heads, Gloria Jean’s Robina, and some Beefy’s Pies locations, while other sites will continue as franchise-operated businesses.

Despite Brumby’s challenges, RFG’s domestic network recorded $505.4 million in sales, with 37 new local stores opening during the year and plans to grow each major brand to 200 sites across Australia. Internationally, RFG operates roughly 1,250 outlets in 30 countries, with 93 new franchise openings outside Australia and 38 within the country.

Implications for Franchisees

• Potential Opportunities for Investors – With RFG looking to sell Brumby’s Bakery, franchisees or investors may have the chance to acquire underperforming sites with existing infrastructure.
• Shift Toward Growth Brands – Current and prospective franchisees can benefit from RFG’s strategic focus on higher-performing concepts like Donut King, Gloria Jean’s, Beefy’s Pies, and Firehouse Subs.
• Franchise Expertise Needed – Navigating transitions in legacy brands requires experience and guidance, particularly in optimizing operations, marketing, and customer engagement.

Why BakeryFranchiseMaster.com Can Help

At BakeryFranchiseMaster.com, powered by Star Brands Consulting Group, we assist bakery investors and franchisees in:

• Evaluating investment opportunities in underperforming or legacy bakery brands
• Assessing profitability and growth potential of franchise sites
• Implementing strategies to revitalize operations and increase sales
• Making informed decisions on acquisitions, conversions, or new franchise launches

With our expertise, investors can capitalize on transitional opportunities, turning challenges in legacy brands like Brumby’s Bakery into profitable, scalable ventures.

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Conclusion

The potential sale of Brumby’s Bakery represents both a challenge and opportunity for investors and franchisees. By partnering with BakeryFranchiseMaster.com and Star Brands Consulting Group, franchisees can navigate RFG’s restructuring landscape, maximize operational efficiency, and identify profitable expansion opportunities. Strategic guidance ensures that investors are positioned to thrive, whether acquiring Brumby’s locations or focusing on higher-growth brands within the RFG portfolio.

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