Popular bakery brand Michel’s Patisserie to shut all stores, Retail Food Group reveals

Well-known bakery chain Michel’s Patisserie will close for good, its parent company has revealed.

There are 19 Michel’s in NSW, Queensland and Victoria, and Retail Food Group said it is in talks with franchisees about converting them to one of its other brands.

Also under the RFG umbrella is Gloria Jeans, Brumby’s Bakery, Donut King and Crust Gourmet Pizza.

The Gold Coast-based group said that “while Michel’s Patisserie has a long history within Australia’s retail food market”, a review had identified a “variety of barriers to driving future brand growth”.

“In light of this assessment, we are engaging with all Michel’s Patisserie franchise partners to explore the opportunity for them to convert their business to the Gloria Jean’s brand, or where that outcome is not feasible, the Donut King brand,” an RFG spokesperson said in a statement.

“We believe that each of the Gloria Jean’s and Donut King brands provide exciting opportunities and a compelling option for Michel’s Patisserie franchise partners considering their immediate or longer-term business futures.

“We’d like to take this opportunity to thank all of our Michel’s Patisserie franchise partners for their ongoing passion for the brand and look forward to working with each of them in a collaborative and transparent way, to achieve a positive outcome that is best suited for individual circumstances.”

Queensland University of Technology retail expert Gary Mortimer said cafes and coffee shops operate in an “incredibly competitive market”.

“The input costs including the food, cake and coffee are relatively high but wage costs can be astronomically high due to penalty rates,” he told 7NEWS.com.au.

“Another challenge with a franchise model — those owners not only have to pay wage and input costs but also have to pay franchising fees, marketing fees and store fitout costs.”

The original Michel’s Patisserie was founded in Sydney in 1980 by chef Michel Cattoen and during the chain’s peak, it had a footprint of more than were 300 stores.

In the last few years, RFG was taken to court by the ACCC which alleged the group sold corporate stores without disclosing to buyers they had been operating at a loss.

RFG agreed to waive historical debts of a number of affected franchisees, the watchdog announced in December, 2022.