Posted by 
The parent company of Australian bakery and cafe chain Michel's Patisserie will retire the iconic brand following several tough years of trade.
Retail Food Group (RFG), which also owns Donut King, Gloria Jean's, Brumby's Bakery and Crust Gourmet Pizza, operates 19 Michel's franchises in NSW, Queensland and Victoria.
The Gold Coast-based group has confirmed it will shutter all existing Michel's Patisserie stores and plans to convert the cafes into its other brands.
READ MORE: 'Obscene': Greens unveil plan to heavily tax 150 people
READ MORE: Residents facing 87 per cent rates hike to fund pool makeover
"Retail Food Group (Australia) can confirm that we have engaged our valued Michel's Patisserie Franchise Partners in conversations regarding the future of the Michel's Patisserie brand and network opportunities for current franchisees," a spokesperson for RFG told 9news.com.au.
"While Michel's Patisserie has a long history within Australia's retail food market, a brand assessment has confirmed a variety of barriers to driving future brand growth; limitations that have been assessed while also considering how we as a network can better invest and help deliver lasting positive change for our Franchise Partners and stakeholders."
The spokesperson said franchise owners will be offered the opportunity to either covert to the Gloria Jean's or Donut King brand.
"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 spokesperson added.
"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."
RFG first flagged plans to convert remaining Michel's outlets into its other core brands at its 2024 annual general meeting after reporting network sales had declined by 19 per cent.
"Core brands outperform legacy brands. Our brand consolidation project aims to convert non-core brand outlets into stronger performing core brands," RFG chief executive Matt Marshall said at the meeting.
In the financial year ending June 2024, RFG generated a net profit of $5.8 million.
The original Michel's Patisserie cafe was founded in 1980 by French pastry chef Michel Catteon.
The first cafe was opened on Sydney's north shore and at its peak, there were over 300 locations across the country.
READ MORE: The 15 fastest-growing jobs with a six-figure paycheck
READ MORE: Matildas skipper Sam Kerr waits after jury is sent out
Michel's faced trouble in 2022 when it was taken to court by consumer watchdog Australian Competition and Consumer Commission (ACCC) over claims RFG sold franchises knowing they were operating at a loss.
RFG was not made to admit the allegations as part of a court settlement but either repaid affected franchisees or wiped their debts.
This included $5 million repaid to franchisees of Michel's Patisserie who paid levies to RFG between July 1, 2012 and June 30, 2017.
The cost of repayments and debt waivers cost the franchise operator $10 million, AAP reported at the time.
DOWNLOAD THE 9NEWS APP: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the Apple App Store and Google Play.
