After more than two decades in Australia’s bakery and café scene, Michel’s Patisserie is set to close its doors nationwide. The announcement follows long-running financial difficulties and a strategic reassessment by its parent company, Retail Food Group (RFG).
A Transition for Franchise Owners
Retail Food Group confirmed the decision on Tuesday, revealing that Michel’s Patisserie locations will either close or be rebranded under other RFG-owned chains, such as Gloria Jean’s or Donut King. The company currently operates 19 Michel’s Patisserie franchises across New South Wales, Queensland, and Victoria.
A spokesperson for RFG stated that discussions with franchise partners were already underway to explore new business opportunities.
“These conversations form part of our organisation’s evolution to be closer to our customers, focusing on elevating customer experience to drive growth, and increasing Franchise Partner profitability,” the spokesperson told Sky News.
A Once-Popular Bakery Facing Growing Challenges
Michel’s Patisserie was founded in 1990 by Noel Carroll and Noel Roberts, and quickly gained traction in Australia’s café culture. By 1994, the chain had expanded to 35 outlets in Sydney, with 10 more planned for the near future. The brand became a staple in Australia’s retail food market, known for its cakes, pastries, and coffee.
However, in 2015, the company switched from offering freshly baked goods to supplying frozen cakes, a move that significantly impacted product quality and customer loyalty. This decline in standards led to a drop in sales and ongoing financial struggles.
In 2022, the Australian Competition and Consumer Commission (ACCC) took legal action against RFG, alleging that the company had sold Michel’s Patisserie franchises while knowing they were operating at a loss.
Support for Affected Franchisees
Retail Food Group has stated that it will support Michel’s Patisserie franchisees during the transition, offering financial assistance and alternative business models under its other café brands.
“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,” the company said in a statement.
While Michel’s Patisserie had a strong presence in Australia’s retail food market, RFG cited barriers to future brand growth as a key reason for the decision. The company has reassessed its strategy, focusing on investing in brands with stronger market potential.
Now, all 19 Michel’s Patisserie franchises operated by RFG across New South Wales, Queensland, and Victoria are set to close. Franchisees will have the opportunity to convert their businesses to other RFG brands such as Gloria Jean’s or Donut King.
With the closure of Michel’s Patisserie, another well-known Australian bakery chain disappears from the country’s food court landscape, marking the end of an era for customers who once frequented its stores for coffee and cake.
