Deception Bay residents will soon have one less place to grab a sweet treat, as Michel’s Patisserie in Deception Bay Shopping Centre is among 19 stores across NSW, Queensland, and Victoria set to close.
Closure Announcement and Rationale
Retail Food Group (RFG), the parent company of Michel’s Patisserie, announced the decision to close the bakery chain due to challenges in growing the brand. RFG, which also owns other well-known food brands like Gloria Jean’s, Brumby’s Bakery, Donut King, and Crust Gourmet Pizza, will be working with Michel’s Patisserie franchisees to transition their businesses.
The company is offering franchisees the opportunity to convert their stores to Gloria Jean’s or Donut King, believing these brands offer better prospects for the future. RFG has stated that it will provide financial and other support to franchisees throughout this process.
Impact on Franchisees and the Community
The closure will impact the 19 Michel’s Patisserie franchisees and their employees. RFG has indicated it is committed to working collaboratively and transparently with each franchisee to find the best outcome for their circumstances. The company acknowledged the passion of Michel’s Patisserie franchisees and thanked them for their dedication to the brand. The closure will also mean a change for local communities who frequented the bakery.
Industry Insights and Background
A retail expert noted the highly competitive environment for cafes and coffee shops. The expert highlighted the challenges of high input costs for food, cakes, and coffee and significant wage costs, especially with penalty rates. The franchise model also presents additional financial burdens for owners, including franchising fees, marketing fees, and store fit-out costs. Michel’s Patisserie, founded by French pastry chef Michel Catteon in 1980, once boasted over 300 locations across Australia.
RFG recently reported a net profit of $5.8 million for the financial year ending June 2024, following a loss in the previous period. The company also faced legal action from the Australian Competition and Consumer Commission in 2022 concerning allegations of selling franchises to owners, knowing they would operate at a loss. RFG settled the case without admitting wrongdoing and was ordered to repay affected franchisees or wipe their debts.
The Future of the Deception Bay Site
The future of the Michel’s Patisserie location in Deception Bay Shopping Centre remains uncertain. Further details about the conversion to either a Gloria Jean’s or Donut King, or another business are expected to be released in the coming months.
Published Date 19-Feb-2025
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