FRANCHISE BOSS QUITS AFTER 'FOOLISH' REMARKS

FRANCHISE BOSS QUITS AFTER 'FOOLISH' REMARKS

A BRUMBY’S Bakeries executive at the centre of a Carbon Tax gaffe has resigned.

Deane Priest has stepped down as the company’s executive director after he allegedly used an internal newsletter to encourage franchisees to lift prices and blame it on the new Carbon Tax.

“After all, your costs will be going up due to it,” he wrote.

The comments sparked an Australian Competition and Consumer Commission (ACCC) investigation into whether the bakery network had mistakenly linked price rises to the Federal Government’s $23 a tonne price on carbon which came into effect on July 1.

If found guilty, infringement notices of $6600 or fines up to $1.1 million could be handed to parent company Retail Food Group (RFG).

Southport-based RFG, which owns Brumby’s Bakeries, Donut King, Michel’s Patisserie and bb's cafe franchise systems, has distanced itself from the comments.

“[They] were innocent albeit foolish and ill-considered remarks…[we] express our genuine regret over this isolated incident and unreservedly apologise for this unacceptable error of judgment,” says CEO Tony Alford (pictured) in a written statement.

Media reports suggest RFG marketing and innovation director Tracey Catterall told franchisees the group would try to “win back the hearts and trust” of Brumby's customers.

The company is expected to place advertisements in the media this weekend and use social media networks to explain its position.

RFG shares declined on Friday to $2.69 per unit.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Looking for a credit or charge card that’s built for your business? Try American Express
Partner Content
A good credit card should work for you, not against you, and let you and your business ...
American Express
Advertisement

Related Stories

ACCC cracks down on greenwashing, fake online reviews

ACCC cracks down on greenwashing, fake online reviews

The nation’s consumer watchdog is cracking down on businesses...

Going green: Investible backs eight climate tech companies through $30 million fund

Going green: Investible backs eight climate tech companies through $30 million fund

A cohort of eight innovative technology companies contributing to d...

Devine abandons Alba to upsize at Burleigh Heads with $400m Burly tower

Devine abandons Alba to upsize at Burleigh Heads with $400m Burly tower

In a sign that the heat has yet to come out of the Gold Coast prope...

Mandatory COVID isolation to end nationally mid-October

Mandatory COVID isolation to end nationally mid-October

National Cabinet has today determined that mandatory isolation peri...