(RFG) Donut King ++ BB's Coffee

[soulman]

Chairman's Address to AGM CEO's Address to AGM

1.35 million kg of roasted coffee beans!

Entered the ASX200 and getting the donut....small cap funds selling due to the ASX200 entry but no buying by the major?

[winner69]

I’d be ashamed to say I owned RFG shares .....but then again if you want to make money sometimes you need to cause misery to others along the way

But looking at the chart screwing your franchisees isn’t always a good thing long term.

http://www.smh.com.au/business/retai...07-h00lbl.html

This network has created a lot of human misery. They're all unhappy. I haven't met a happy one.

[peat]

I’d be ashamed to say I owned RFG shares .....but then again if you want to make money sometimes you need to cause misery to others along the way

But looking at the chart screwing your franchisees isn’t always a good thing long term.

http://www.smh.com.au/business/retai...07-h00lbl.html

This network has created a lot of human misery. They're all unhappy. I haven't met a happy one.

It seems amazing that the directors confirmed guidance and then six days later changed their mind about that.
I investigated this company and it ticked quite a few boxes but something pushed me away.
I note Motley Fool had recommended it several times and it was recently $7 (but have today put out a sell now that its below 2.00)

A very scary loss of wealth here. I would say that the business model is flawed in that it profits in too many ways off its franchisees. Those franchise fees arent unusual, I've seen them in other operations, but with the supply chain eating itself it turns into a race to the bottom.

[winner69]

Weird that management are blaming everything and everybody for this fiasco .....not our fault.

[Joshuatree]

Way over 2000 franchises and its all coming apart. I know a guy who has been averaging down on this; reminds me of aeons ago when i did the same with Brierleys re in 87. Big lesson that one.

[winner69]

gee whiz ... another shocking day ..... down 18%

[winner69]

RFG resumes trading on Monday after another shocker report

If you like 'bloodbaths' this could be a good one

Might be some decent spikes up fpr the brave

https://www.smh.com.au/business/comp...02-p4z2lu.html

In a nutshell, RFG has put profits before franchisees and it is now paying the price. The quality of food it sells to franchisees who then sell to customers has deteriorated and the prices have gone up, causing customers to flee and revenues to fall.

[percy]

It seems amazing that the directors confirmed guidance and then six days later changed their mind about that.
I investigated this company and it ticked quite a few boxes but something pushed me away.
I note Motley Fool had recommended it several times and it was recently $7 (but have today put out a sell now that its below 2.00)

A very scary loss of wealth here. I would say that the business model is flawed in that it profits in too many ways off its franchisees. Those franchise fees arent unusual, I've seen them in other operations, but with the supply chain eating itself it turns into a race to the bottom.

Yes it is not only RFG [food] model that is flawed.
Lawn mowing,carpet cleaning,house cleaning,petrol stations,book shops,the list just keeps on growing.
A great number of "self employed" working for next to nothing.Most would have used their home as security to finance buying their franchise.Grim future for hundreds of hard working battlers.

[percy]

Interesting to note RFG are trading at $1.265.May seem cheap, as they once traded over $7.00.
Must admit I think anyone buying at these prices is very brave.
The fizz is well and truly out of the bottle.

[Recaster]

RFG have been through a restructure and share issue. Currently around the AUD 7 cents region. They seem to be profitable now.