Firehouse Subs in Australia: Retail Food Group takes bite out of $1.7b sandwich market with launch of US chain

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Firehouse Subs in Australia: Retail Food Group takes bite out of $1.7b sandwich market with launch of US chain

The company behind eateries Donut King and Gloria Jean’s is set to muscle its way into the local $1.7 billion sandwich category by launching US chain Firehouse Subs across Australia.

Fresh from abandoning its popular bakery chain Michel’s Patisserie last week, Retail Food Group announced on Wednesday it had inked a deal with Restaurant Brands International to open 165 Firehouse Subs stores over the next 10 years.

The move — which will see the first store opened in south-east Queensland late this year — pits the brand directly against market leader Subway.

The Gold Coast-based RFG is also behind the Crust pizza chain and Brumby’s Bakery.

The deal with RBI — one of the world’s biggest quick service restaurant companies — is expected to see 15 company-owned stores opened in the next three years in Queensland before expanding across the country via franchisees.

RFG chief executive Matthew Marshall said Firehouse Subs was a key pillar of its ambitious growth strategy.

“I am convinced that Australians have never tried anything like the quality and flavour of Firehouse Subs,” he said.

“This is a brand that is all about the highest quality sandwiches with exceptional service. We couldn’t ask for a better partner than RBI, bringing global scale and new market entry expertise.”

RBI International president Thiago Santelmo said it was excited to expand Firehouse Subs in the Asia-Pacific region.

An RFG spokesman told The Nightly that WA was also on its radar, saying there was an “opportunity for franchisees to partner with us to expand the Firehouse Subs brand in all States and Territories”.

Firehouse Subs was founded by brothers Chris and Robin Sorensen in Jacksonvile, Florida. It has grown to 1300 locations across North America, with plans to expand into Brazil.

RFG shares jumped 13 per cent to $2.08 following the announcement of the deal and its half-year results, which showed net profit grew 74 per cent to $7.3 million in the six months to the end of December as revenue leapt 20 per cent to $69.6m.

Sales growth at its coffee, cafe and bakery brands — which generates about 72 per cent of total sales — was offset by weaker performance from its quick service restaurants segment.

RFG said Crust has seen the number of customers decline as families continued to pull back on dining out.

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