Popular bakery and cafe chain Michel’s Patisserie will shut down after a tough few years of trade.
Its parent company Retail Food Group (RFG) said it would close the 19 Michel’s franchises it operates in NSW, Queensland and Victoria.
French pastry chef Michel Catteon founded the original Michel’s Patisserie café in Sydney in 1980.
There were more than 300 locations across the country during the cafe chain’s peak.
The Gold Coast-based group will convert the cafes into its other brands which include Donut King, Gloria Jean’s, Brumby’s Bakery and Crust Gourmet Pizza.
An RFG spokesperson said the company would work with existing franchisees to ensure the transition goes smoothly.
‘This process (converting from the Michel’s brand) will take place in collaboration with our franchise partners, with the timing of any conversions based on the individual circumstances of each partner to ensure the best outcome for them and their customers,’ RFG told The Australian.
‘We continue to support those franchise partners consistent with the terms of their existing Michel’s Patisserie franchise agreements.
Michel’s Patisserie stores across the country will close
‘We are working with all Michel’s franchisees in connection with the conversion opportunity.
‘That includes an offer of financial and other support.’
Franchise owners will be offered the opportunity to either covert to the Gloria Jean’s or Donut King brand.
‘We believe that each of the Gloria Jean’s and Donut King brands provide exciting opportunities and a compelling option for Michel’s Patisserie Franchise Partners considering their immediate or longer-term business futures,’ the spokesperson added.
RFG first identified plans to convert Michel’s outlets into its other brands at its 2024 AGM after network sales had dropped by 19 per cent.
‘Core brands outperform legacy brands. Our brand consolidation project aims to convert non-core brand outlets into stronger performing core brands,’ RFG chief executive Matt Marshall said at the meeting.
In the financial year ending in June 2024, RFG made a net profit of $5.8million after generating a loss in the previous corresponding period.
Michel’s hasn’t evaded controversy and was taken to court by consumer watchdog Australian Competition and Consumer Commission (ACCC) in 2022 over claims RFG sold franchises knowing they were operating at a loss.
The 19 stores will convert to Gloria Jean’s and Donut King stores
RFG was not made to admit the allegations as part of a court settlement but it either repaid affected franchisees or cleared their debts.
It included $5million repaid to franchisees of Michel’s Patisserie who paid levies to RFG between July 1, 2012 and June 30, 2017.
The cost of repayments and debt waivers cost the franchise operator $10million, AAP reported at the time.
RFG has been contacted for comment by Daily Mail Australia.
