More retail carnage from Retail Food Group:
This another of those immigration-exposed businesses that is accused of relying upon unsociable assumptions for franshisee operations. As the AFR argues today the entire model is under increasing strain:
The investigative journalism by my colleague Adele Ferguson exposed the obvious financial conflicts and governance flaws inherent in poorly-run franchise systems.
Her work found that in certain circumstances there was a power imbalance between franchisees and franchisors which was exploited to the detriment of franchisees and their workers.
…Some franchisees blamed underpayments on Domino’s franchise model, saying they couldn’t afford to pay staff correct wages. Paying appropriate wages would squeeze the profitability of franchisees.
…Retail Food Group is another one of the poster children of franchising. Ferguson and Sarah Danckert found that it was squeezing its franchisees too hard.
Now just imagine what happens if/when the flow of hard-working but vulnerable migrants dries up.
