Popular bakery shuts down all stores

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Retail Food Group has confirmed it will close down the 19 Michel's franchises it runs in NSW, Queensland and Victoria.

The Gold Coast-based group, which also owns Donut King, Gloria Jean's, Brumby's Bakery and Crust Gourmet Pizza, will work with existing franchisees to ensure the transition runs smoothly.

"This process of switching from the Michel's brand will occur in partnership with our franchised operators, with the timing of any conversions being tailored to the unique needs of each business to achieve the best possible result for them and their customers," a RFG representative said.

We'll keep backing our franchise partners in line with the rules set out in their original Michel's Patisserie franchise deal.

We're working with all of Michel's franchisees in relation to the conversion option.

“That involves a financial assistance package and other forms of support.”

The spokesperson stated that the selected brands to take over the stores will be Gloria Jean's and Donut King.

“Given this assessment, we're having a chat with all the Michel’s Patisserie franchise partners to look into whether they can switch to the Gloria Jean’s brand, or if that's not possible, the Donut King brand,” she said.

“We reckon that each of the Gloria Jean's and Donut King brands presents exciting opportunities and a pretty compelling option for Michel's Patisserie franchise partners thinking about their immediate or longer-term business futures.”

“We'd like to take this chance to thank all our Michel's Patisserie franchise partners for their ongoing enthusiasm for the brand and look forward to working with each of them in a collaborative and open way, to achieve a positive outcome that suits their individual needs.”

Sydney's north shore saw the opening of Michel's Patisserie cafe by French pastry chef Michel Catteon in 1980.

At its peak, there were over 300 locations across the nation.

The legendary brand has had a bit of a rough trot in the marketplace lately.

In the financial year that ended in June 2024, RFG made a net profit of $5.8 million, after making a loss in the previous financial year.

RFG was taken to court by the Australian consumer watchdog, the Australian Competition and Consumer Commission, over allegations that RFG sold franchises that were operating at a loss in 2022.

While RFG didn't cop to the allegations in the court settlement, it was told to either give back the money to the affected franchisees or wipe their debts completely.