Retail Food Group has created a new chief executive role to oversee the embattled Australian store network that includes Donut King, Gloria Jean’s and Brumby’s Bakery.
RFG on Monday said Richard Hinson, a former executive at supermarkets wholesaler Metcash and confectionary maker Wrigley Pacific, has been hired for the role to help improve support for franchisees.
The company’s shares have halved in value since media reports first emerged in early December accusing RFG of running franchisees into the ground with high costs and a lack of support.
Shares in RFG were down 3.0 cents, or 1.45 per cent, at $2.04 by 1500 AEDT.
Managing director Andre Nell said Mr Hinson has a wealth of experience in supply chain and customer service in the food sector and he will assist in the business wide review of the group’s operations.
‘One of the primary objectives of that review is to find ways to better support our franchisees to ensure their businesses remain profitable and sustainable in a challenging retail market,’ Mr Nell said.
‘Richard has been brought on board to assist with the review and lead implementation of key recommendations which result from it.’
He said this new position demonstrated the group’s commitment to its franchisees.