Coffee and bakery chains drive Retail Food Group’s half-year sales growth

Gloria Jean’s benefited from an uplift in customer traffic following the lifting of lockdown restrictions across Australia | Photo credit: Gloria Jean's

Retail Food Group has reported strong half-year sales growth across all its foodservice brands, with the group’s coffee and bakery chains enjoying a significant post-pandemic ‘bounce back’. 
 

Reporting on the six months ended 30 December 2022, the Queensland-based food and beverage franchise group reported total network sales growth of 14% to reach A$258.8m ($174m). Meanwhile brand-wide same-store sales increased 18%. 

The company’s leading coffee brand, Gloria Jean’s, benefited from an uplift in customer traffic following the lifting of lockdown restrictions across Australia to achieve 32% same-store sales growth and total revenue growth of 25% to reach $56.7m ($38m) in its domestic market. 

The coffee chain is now operating at 104% of pre-pandemic levels across Australia. 

Retail Food Group opened two Gloria Jean’s Coffees drive-thru outlets across the country during the period, but closed 11 stores to reach 181 nationwide. Retail Food Group also operates 71 Gloria Jean’s coffee vans across Australia, 14 fewer than at the end of its half-year 2022.  

Gloria Jean’s is operated in international markets by Retail Food Group’s International Franchise Division. The business opened 10 net new stores over the last six months, including 19 new outlets in Turkey, to reach 592 stores across 41 countries. 

Retail Food Group forecasts opening more than 60 stores across 15 countries for its full-year 2023, including strong outlet growth in the US, where the company is targeting 100 sites within the next three years. 

The Queensland-based food and beverage franchise group also reported strong growth for its bakery café brands, comprising Donut King, Brumby’s Bakeries and Michel’s Patisserie.  

Revenues for Retail Food Group’s bakery café division reached A$124m ($83.5m), driven by Donut King’s 41% same-store sales growth. 

“During the 1H23, all brand systems enjoyed positive same-store sales growth. Of particular note, the group’s coffee-based brand systems enjoyed a significant post Covid-19 ‘bounce back’ as customers returned to more normal shopping routines,” said Peter George, Executive Chairman, Retail Food Group. 

Retail Food Group also operates the Pizza Capers and Crust Gourmet Pizza Bar fast-food brands, which contributed sales of A$78m ($52.5m) during the reporting period.