The solution is to close marginal stores, rewrite the franchise contract to better help franchisees make a living, revamp the remaining stores with newer design and introduce better menus that contain a range of food people want to eat and drink. It's the revamp that is needed to get the company back on track. It might mean lower profits in the medium term but past profits were based on an unsustainable business plan. Future profits will depend on creating more viable franchises for all parties, the company, franchisees and customers. Let's hope the new CEO has a plan to implement something like this. If successful profit will return and success will lead to expansion locally and internationally.
RFG Price at posting:
76.0¢ Sentiment: Hold Disclosure: Held
