Over Sold, page-291

Scott, you have identified a trend that others have seemed to have dismissed; that is that “Australia is leaking with food outlets, far too many for the population”. I absolutely agree and for that one reason was the reason I had no interest in RFG. There just didnt seem to be a wide enough moat around the business. A private food retailer can open up a business and if she or he has good product and return customers will make a go of it without having to pay franchise fees. One can argue about the product, the proficiency of the business etc etc etc, but the fact remains, that anyone that has the finance and can make a good hamburger, is free to set up wherever and whenever they like. No moat whatsoever, no franchise fees, no-one to answer to apart from yourself and the bank manager..... and the customers.