Big change coming to iconic café chain and what it means for your favourite treats
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For years, a well-known café brand has been a go-to spot for indulgent cakes, flaky pastries, and a welcoming atmosphere.
However, changes are underway as its parent company has announced a major brand transformation.
This shift marks the end of a familiar presence in the Australian café landscape, bringing an era to a close.
Michel's Patisserie, a known institution since its inception in 1980 by French pastry chef Michel Catteon, has faced several challenging years of trade.
At its zenith, the brand boasted over 300 locations across the country, becoming a staple in the Australian bakery and cafe market.
However, the tides have turned for Michel's, with RFG confirming that the remaining 19 franchises in New South Wales, Queensland, and Victoria will be shuttered and converted into other RFG brands, such as Gloria Jean's or Donut King.
The decision to retire Michel's Patisserie did not come lightly. Retail Food Group (RFG) has been in discussions with Michel's franchise partners, weighing the brand's long history against the barriers to future growth.
'We believe that each of the Gloria Jean's and Donut King brands provides exciting opportunities and a compelling option for Michel's Patisserie Franchise Partners considering their immediate or longer-term business futures,' a spokesperson said.
'We'd like to take this opportunity to thank all of our Michel's Patisserie Franchise Partners for their ongoing passion for the brand and look forward to working with each of them in a collaborative and transparent way, to achieve a positive outcome that is best suited for individual circumstances.'
A brand assessment highlighted various limitations, prompting RFG to consider how best to invest in and support its franchise partners and stakeholders.
The outcome is a strategic pivot towards brands that RFG believes offer more exciting and sustainable opportunities for business growth.
This move is part of RFG's broader strategy to focus on core brands that have shown stronger performance.
The company's chief executive, Matt Marshall, emphasised this point at the 2024 annual general meeting, noting that network sales had declined by 19 per cent and that the consolidation project aims to strengthen the overall brand portfolio.
'Core brands outperform legacy brands. Our brand consolidation project aims to convert non-core brand outlets into stronger performing core brands,' he said.
Despite the strategic shift, the transition is bittersweet. Michel's Patisserie has been a part of Australia's retail food market for over four decades, and its closure will undoubtedly leave a void for those who have cherished its offerings.
RFG has expressed gratitude to all Michel's franchise partners for their dedication and passion for the brand and is committed to working collaboratively to ensure a smooth and positive transition for all involved.
The financial implications of the brand's struggles have been significant. In 2022, the Australian Competition and Consumer Commission (ACCC) took Michel's to court over allegations that RFG sold franchises knowing they were operating at a loss.
While RFG did not admit to the allegations, the court settlement resulted in $5 million being repaid to franchisees or debts being waived, totalling a $10 million cost to the franchise operator.
As we bid farewell to Michel's Patisserie, it's important to remember the joy and deliciousness it brought into our lives.
The legacy of Michel Catteon's vision will live on in the memories of those who savoured his creations.
And while the future may not include Michel's familiar green and gold signage, the spirit of indulgence and community it represented will continue to thrive in the cafes and bakeries that fill its place.
Credit: YouTube
Do you see this brand transformation as a positive step for business growth, or does it risk losing something familiar and cherished? Feel free to share your thoughts and opinions in the comments below.
However, changes are underway as its parent company has announced a major brand transformation.
This shift marks the end of a familiar presence in the Australian café landscape, bringing an era to a close.
Michel's Patisserie, a known institution since its inception in 1980 by French pastry chef Michel Catteon, has faced several challenging years of trade.
At its zenith, the brand boasted over 300 locations across the country, becoming a staple in the Australian bakery and cafe market.
However, the tides have turned for Michel's, with RFG confirming that the remaining 19 franchises in New South Wales, Queensland, and Victoria will be shuttered and converted into other RFG brands, such as Gloria Jean's or Donut King.
All Michel's Patisserie stores are being closed and converted into Gloria Jean's or Donut King outlets. Credit: Facebook
The decision to retire Michel's Patisserie did not come lightly. Retail Food Group (RFG) has been in discussions with Michel's franchise partners, weighing the brand's long history against the barriers to future growth.
'We believe that each of the Gloria Jean's and Donut King brands provides exciting opportunities and a compelling option for Michel's Patisserie Franchise Partners considering their immediate or longer-term business futures,' a spokesperson said.
'We'd like to take this opportunity to thank all of our Michel's Patisserie Franchise Partners for their ongoing passion for the brand and look forward to working with each of them in a collaborative and transparent way, to achieve a positive outcome that is best suited for individual circumstances.'
A brand assessment highlighted various limitations, prompting RFG to consider how best to invest in and support its franchise partners and stakeholders.
The outcome is a strategic pivot towards brands that RFG believes offer more exciting and sustainable opportunities for business growth.
Franchise owners are not being left in the lurch; they are being offered the chance to convert their businesses to either Gloria Jean's or Donut King.This move is part of RFG's broader strategy to focus on core brands that have shown stronger performance.
The company's chief executive, Matt Marshall, emphasised this point at the 2024 annual general meeting, noting that network sales had declined by 19 per cent and that the consolidation project aims to strengthen the overall brand portfolio.
'Core brands outperform legacy brands. Our brand consolidation project aims to convert non-core brand outlets into stronger performing core brands,' he said.
RFG has expressed gratitude to all Michel's franchise partners for their dedication and passion for the brand and is committed to working collaboratively to ensure a smooth and positive transition for all involved.
The financial implications of the brand's struggles have been significant. In 2022, the Australian Competition and Consumer Commission (ACCC) took Michel's to court over allegations that RFG sold franchises knowing they were operating at a loss.
While RFG did not admit to the allegations, the court settlement resulted in $5 million being repaid to franchisees or debts being waived, totalling a $10 million cost to the franchise operator.
As we bid farewell to Michel's Patisserie, it's important to remember the joy and deliciousness it brought into our lives.
The legacy of Michel Catteon's vision will live on in the memories of those who savoured his creations.
And while the future may not include Michel's familiar green and gold signage, the spirit of indulgence and community it represented will continue to thrive in the cafes and bakeries that fill its place.
Credit: YouTube
