RFG: to provide cheaper menus in downturn

Southport / AU. (rfg) Despite robust trade in 2008, the Australian Retail Food Group Limited (RFG) will provide cheaper menu items to entice customers in the weaker economic climate. The Gold Coast-based company said it will adjust its menus to compete with a growing trend toward home dining as the current downturn continues to bite.

RFG reported average weekly sales growth of 5,8 percent for November and December period, up from four percent at the end of October 2008. RFG chief executive Tony Alford said the company´s four franchises – Donut King, Brumbys Bakeries, Michels Patisserie and bbs cafe stores – should not be complacent in a challenging retail environment.

«Providing affordable meals options like quiches, breads, sandwiches, cakes and other treats for these occasions will also be a core focus in the year ahead», Alford said in a statement (PDF). «While Australians may be decreasing the purchase incidence of large ticket discretionary items, consumers will still seek to reward themselves with treats like donuts, coffee and cake. Australians are also increasingly demanding affordable and healthy meal options like breads, quiches and sandwiches».

The trend towards convenience foods in tough conditions has been reflected world wide. Some days ago, fast food giant McDonald´s Corporation posted a 7,1 percent worldwide sales increase for January, citing a 10,2 percent rise in Asia/Pacific, the Middle East and Africa led by strong growth in Australia, China and other countries.