There’s something uniquely nostalgic about a favourite bakery—the comforting smell of fresh pastries, the familiar faces behind the counter, and the sense of tradition it provides.
Unfortunately, the Australian bakery landscape is about to lose one of its most familiar fixtures as a beloved brand known for its sweet treats and pastries is set to close all of its stores. Retail Food Group (RFG), the bakery chain’s parent company has announced the sad news for many dessert and pastry lovers.
Michel’s Patisserie has been a staple in the country’s bakery scene since its inception in Sydney in 1980 by French-born chef Michel Cattoen. It ‘prides itself on ensuring every visit is special; no matter how big or small.’
The brand’s product offering ranges from ‘delicious sweet treats or heart-warming savouries, to [their] range of personalised cakes and award-winning signature coffee.’
Over the years, Michel’s expanded significantly, boasting more than 300 stores at its peak. However, the current count stands at 19 outlets across New South Wales, Queensland, and Victoria.
The decision to close the stores comes after RFG conducted a comprehensive review of the brand, which revealed a ‘variety of barriers to driving future brand growth.’
Gary Mortimer, a retail expert from Queensland University of Technology, pointed out to 7NEWS.com.au that cafés and coffee shops are navigating an ‘incredibly competitive market.’
He highlighted that while the costs of food, cake, and coffee are relatively high, wage costs can be ‘astronomically high due to penalty rates,’ further squeezing the profitability of such establishments.
‘Another challenge with a franchise model—those owners not only have to pay wage and input costs but also have to pay franchising fees, marketing fees and store fit-out costs,’ he added.
In light of these challenges, RFG is in discussions with Michel’s Patisserie franchisees about the possibility of converting their stores to other brands within the RFG portfolio, such as Gloria Jean’s or Donut King.
‘We believe that each of the Gloria Jean’s and Donut King brands provide[s] exciting opportunities and a compelling option for Michel’s Patisserie franchise partners considering their immediate or longer-term business futures,’ said RFG’s spokesperson in a statement.
RFG has also expressed gratitude to the Michel’s Patisserie franchise partners for their dedication and is committed to working collaboratively to ensure a smooth transition that accommodates the individual circumstances of each franchisee.
The closure of Michel’s Patisserie marks the end of an era for a brand that has been part of Australia’s culinary fabric for over four decades.
The news comes on the heels of past controversies, including a legal battle where RFG faced allegations from the Australian Competition and Consumer Commission (ACCC) of selling corporate stores without disclosing their loss-making status to buyers. In December 2022, RFG agreed to waive historical debts for a number of affected franchisees as part of a resolution with the watchdog.
As the final pastries are sold and the ovens cool down for the last time, customers and franchise owners alike are left to reflect on the changing tides of the retail food market. The closure of Michel’s Patisserie serves as a stark reminder of the volatility of the food industry and the importance of adaptability in the face of economic pressures.
How do you feel about the closure of Michel’s Patisserie, and what do you think it signifies for the future of Australian bakeries? We invite you to share your stories and thoughts on this significant change with the YourLifeChoices community in the comments below.
Also read: A slice of change: Why Domino’s Pizza is closing over 200 stores
