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Australian KFC and Taco Bell restaurant operator Collins Foods (ASX: CKF) has appointed Austrade boss Xavier Simonet to replace outgoing CEO Drew O'Malley who announced in June that he would be stepping down from the role following a family tragedy.
Simonet, who has been CEO of the Australian Trade and Investment Commission (Austrade) since April 2021, has extensive experience in retail as head of Kathmandu Holdings, now known as KMD Brands (ASX: KMD), for six years previously.
The incoming CEO, who also spent 11 years with Louis Vuitton Moet Hennessy, is credited with turning around the fortunes of Kathmandu Holdings during his tenure.
However, he joins Collins Foods after his role at Austrade earlier this year was revealed to be facing challenges with Simonet leading a strategy to rein in cost blowouts at the government-backed trade authority.
Simonet will replace non-executive director Kevin Perkins who stepped in as interim CEO after O’Malley exited the business following the death of his wife due to a serious illness.
O'Malley had been with Collins Foods since 2017 when he assumed the role of chief operating officer, before being promoted to the job at the height of COVID-19 in July 2020.
“Following a comprehensive global search process, the board is delighted to have secured a managing director and CEO of Xavier’s capabilities, experience and respect in the market,” says Collins Foods chair Robert Kaye.
“His track record reflects his capability to successfully grow international brands and businesses while working collaboratively with multiple stakeholders.”
Simonet will step into the role on 4 November 2024, based at the company’s Brisbane head office.
Collins Foods notes that Simonet has a “proven track record of formulating and implementing strategic plans across multi-site retail operations”.
“He has successfully grown sales and profitability across multiple geographies and brings diversity of experience across a range of sectors and companies,” it says.
“Xavier has a global mindset and a track record of delivering operational performance, leading business transformation and executing M&A.”
Simonet joins KFC on the back of a strong FY24 performance which saw the company deliver record revenue of $1.49 billion.
The growth of its two key brands, KFC and Taco Bell, was buoyed by the net increase of 17 restaurants during the year with KFC Australia accounting for three-quarters of all revenue.
Collins Foods is pushing to further develop its European KFC operations and the Taco Bell chain in Australia with both recording double-digit revenue growth during the year.
However, an update issued to the market on 22 August revealed that while company sales grew 1.1 per cent in the first 16 weeks of FY25, the profit gains on higher sales were “more than offset by the impact of persistent inflation on cost of sales, labour and energy”.
Kayes notes that Perkins has led the company as interim CEO during “considerable change and challenge for Collins Foods”.
However, Simonet is looking forward to the challenge.
“It is a privilege to be entrusted to lead Collins Foods as its next MD and CEO,” says Simonet.
“The opportunity to grow Collins Foods and its world-class brands, which are synonymous with customer value and great tasting food, is compelling.
“I am very much looking forward to working with the board and entire team of more than 20,000 employees across Australia and Europe as we strive to continue to set new standards in QSR (quick service restaurant) excellence.”
Simonet joins Collins Foods on a base fixed salary of $1.2 million, plus incentives, which is double his salary as CEO of Austrade.
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