Hewjet makes a point I've been talking about for years. There ARE too many food outlets in Australia - FAR too many for the population and a huge increase of numbers per 100000 people over the last 25 years. Having operated and consulted in the food game since 1981 I can tell you things look good, but aren't.
Couple that with a low density populace and it's a bad formula. And the reason it is important is that it impacts on any company who operates in the food space. Add in a lowering of the standards for franchisees and easy finance and we have a problem. Lower prices expectations and a militant consumer driven to price by advertising manipulation and it hits GP, NP, ATO take and ROI.
So, looking forward, anyone in food is facing challenges. Councils stupidly think that all spaces can be filled with cafes but the cost of set up even for independents is getting crazy.
All of this DOES matter to the RFG discussion because THEY'RE IN THE FOOD BUSINESS.
RFG Price at posting:
$1.99 Sentiment: Sell Disclosure: Not Held
