Australia’s Retail Food Group has announced plans to open 23 more Donut King stores over the next year as it counts down to its $36.5 million capital raising and public listing, Chief executive Tony Alford said 261 Australian franchises already operated. New outlet openings were a key factor in driving earnings growth along with the growth of the company’s bb’s cafe outlets.

In its recently issued prospectus, Retail Food Group forecasts Donut King net outlet growth of 6 per cent for the 2006 fiscal year and 7.1 per cent in 2007. “New outlet openings deliver franchise revenue including initial franchise and training fees and have a positive flow-on effect through ongoing franchise service fee revenue and increased supply volume and turnover from which the company derives supplier product licence fees and other benefits,” Mr Alford said.

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