Retail Food Group controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2022
ACCC civil case and franchisee settlement
The ACCC won a civil court case against RFG. A settlement relating to alleged improper marketing expenses and the sale of loss-making stores provided repayments and debt erasures totaling A$10 million to Michel's Patisserie and Gloria Jean's franchisees.
2019
Crust franchise operator fined over worker underpayments
Fine or penalty
In a case involving a Crust Gourmet Pizza outlet in North Hobart, the Federal Circuit Court fined the outlet's operator, QHA Foods, $80,000 and fined two directors $12,000 each. The case concerned underpayment and discrimination against foreign employees. The operators admitted workplace-law breaches. The court proceedings addressed the treatment of foreign workers at the franchise outlet, with the penalties imposed on both the operating company and its directors.
The Federal Circuit Court fined QHA Foods, the operator of a Crust Gourmet Pizza outlet in North Hobart, $80,000, and fined two directors $12,000 each. The case involved underpayment and discrimination against foreign employees; the operators admitted workplace-law breaches.
Company response
Remediation — Retail Food Group (RFG)
RFG has implemented a wide range of measures in order to prevent non compliance occurring across its network.
Source excerpt
The operator of the Crust outlet, QHA Foods Pty Ltd, and two of the company's directors and shareholders, Anandh Kumarasamy and Haridas Raghuram, admitted committing several breaches of workplace laws.
RFG has implemented a wide range of measures in order to prevent non compliance occurring across its network.
QHA Foods was fined $80,000, while Mr Kumarasamy and Mr Raghuram — who Fair Work said were involved in managing the outlet — were each fined a further $12,000.
2017
Reported franchisee financial distress
A Sydney Morning Herald investigation reported that hundreds of franchisees had experienced severe financial hardship after investing in brands within the RFG network.