Business Description:
Retail Food Group Limited (RFG) designs, develops and manages franchise systems and is the intellectual property owner and manager of the following retail and coffee brands: Donut King, Michel’s Patisserie, Brumby's Bakery, Esquires Coffee Houses, bb's cafe, Evil Child, Roasted Addiqtion, Big Dad's Pies and Barista's Choice.

Strategy Analysis:
Eighty percent of outlets are located in high foot traffic shopping centres to take advantage of small change customer spending. Stagnant shopping centre development has forced management to consider non-traditional sites to continue outlet growth. Franchisee health is a focus with efforts centred on the fortification of average weekly sales via menu enhancement and product innovation, and leveraging input suppliers. Management also pursue acquisitions which provide opportunities to increase EPS, scale, synergies, organic growth and intellectual property. Acquisitions will not necessarily be limited to the food and franchising sector. Retail Food Group reported NPAT up 4.6% to $27.22m for the year ended 30 June 2011. Revenues from ordinary activities were $125.66m, down 6.4% from last year. Diluted EPS was 25.2 cents compared to 25.0 cents last year. Net operating cash flow was $26.84m compared to $29.24m last year. The final dividend declared was 7.5 cents, taking the full year dividend to 14.5 cents compared with 11.75 cents last year.