Beefy’s sales up since Retail Food Group’s acquisition

Beefy’s Pies witnessed $6 million domestic network sales from December 11 to end of April, up 7 per cent year over year, reflecting an improvement since Retail Food Group’s $10 million acquisition of the beef pie brand.

Its average transaction value during the period rose 3.6 per cent to $15.81 while average weekly sales totalled $33,500.

RFG said Beefy’s contributed unaudited earnings before interest, taxes, depreciation, and amortisation (EBITDA) of about $1 million post-acquisition, in line with the group’s expectations.

The figures come as Beefy’s transitioned to lower-cost Coca-Cola pricing on January 1 and Gloria Jean’s Wynnum started a trial of Beefy’s pies in February which opened a grab and go hot box opportunities. However, RFG noted that the extension of gluten-free pie supply is still under consideration.

Beefy’s will soon open its 10th store in Ballina in June as part of expansion plans for the pie brand in northern NSW and Queensland. The new store will replace a previously high-performing Brumby’s outlet.

Meanwhile, a second Michel’s store conversion to Gloria Jean’s is underway in Toowoomba as part of RFG’s non-core brand consolidation project.

The group successfully completed the pilot conversion of Pizza Capers to Crust in Cleveland, Queensland.

For the full year, RFG maintains its previous forecast of $110 million to $118 million of revenue from contracts with customers, up 8 per cent to 16 per cent from last year. Underlying EBITDA is estimated to reach $28 million to $32 million, up 11 per cent to 26 per cent.

RFG aims to invest up to $0.5 million in franchisee support to convert its Café2U and The Coffee Guy mobile brands to Gloria Jean’s.

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