From : smartcompany.com.au
By : Jason Gehrke

The recent furore over a Brumby’s head office memo which mentioned the carbon tax as a reason to increase prices completely overshadowed the sentiment behind the document.

In simple terms, the memo recommended franchisees review their prices to ensure that they are appropriate for the products offered, that prices are competitive with those offered by other chains, and sufficiently profitable such that the business can remain viable and pay a reasonable return on investment to the franchisees who own and operate it.

In itself, these sentiments are universally relevant, but with reference to the carbon tax, the memo (once leaked to the media) became a PR disaster that drew the attention of federal politicians and the Australian Competition and Consumer Commission (ACCC), and ultimately led to the resignation of the brand’s most senior executive after a long and distinguished career.

Unfortunately, the throwaway reference to the carbon tax in the memo totally overshadowed its main message, which was to remind business owners to review their prices.

Click to continue reading “Franchise tips and trends price review message lost in carbon tax furore”

From : smartcompany.com.au
By : Patrick Stafford

Brumby’s Bakery has been slapped with an undertaking by the Australian Competition and Consumer Commission after telling its franchisees to blame price rises on the carbon tax – but the competition watchdog says it’s not making an example out of the franchise.

The chain was the first to be slammed by the ACCC with regard to the carbon tax, after managing director Deane Priest sent a newsletter to franchisees telling them to start raising prices in June, and blame any on the carbon tax if customers asked.

Priest has since resigned.

The ACCC has now confirmed Brumby’s has accepted an enforceable undertaking, which includes writing to franchisees and outlining legal obligations under proper representation of prices. Staff will also receive more training.

ACCC chairman Rod Sims says the outcome is designed to seek compliance with the law, “not to necessarily impose penalties” – and referenced the “excellent co-operation” from the company.

Click to continue reading “We’re not on a witch hunt”

From : smh.com.au
By : Larissa Ham

Brumby’s has escaped a hefty fine over its carbon tax misfire, instead entering into an undertaking with the consumer watchdog.

The bakery chain’s parent company, Retail Food Group, was forced to issue a prompt apology after its managing director, Deane Priest - who has since resigned - wrote to franchisees suggesting that they lift their prices and ‘‘let the carbon tax take the blame’’.

The Australian Competition and Consumer Commission this afternoon said that it had accepted a court-enforceable undertaking from Retail Food Group that it would not engage in similar conduct in the future.

If businesses tell customers that prices have gone up due to the carbon price, or indeed for other reasons, their claims must be truthful and have a reasonable basis, or the business will face potential ACCC action,’’ ACCC chairman Rod Sims said.

Click to continue reading “Brumbys let off hook after carbon misfire”

From : franchise.net.au
By : Sarah Stowe

The Australian Competition and Consumer Commission has accepted a court enforceable undertaking from Retail Food Group, owner of Brumby’s Bakeries, regarding comments over the carbon tax and price increases.

The chain found itself the first high profile business caught up in publicity over carbon tax pricing and under the spotlight at the ACCC following comments in a newsletter to franchisees that linked retail price increases to the introduction of the carbon tax.

Retail Food Group has cooperated with the ACCC and offered the undertaking that neither the company nor its subsidiaries (bb’s cafe, Big Dad’s Pies, Brumby’s Bakeries, Donut King, Esquires Coffee Houses, Michel’s Patisserie and Pizza Capers) will engage in similar conduct in the future.

Click to continue reading “ACCC accepts retail food groups undertaking”

From : News.com.au
By : AAP

Brumby’s bakeries boss Deane Priest has quit over the carbon tax controversy. MR Priest told Brumby’s franchisees in a June newsletter, made public this week, that they should “let the carbon tax take the blame” for price rises.

A spokeswoman for parent company Retail Food Group (RFG) said on Friday Mr Priest had resigned from the group, effective immediately.

“That resignation has been accepted,” she said in a statement.

The comments by Mr Priest, who joined RFG in 2007, were described by its CEO Tony Alford as an “unacceptable error of judgment”.

Meanwhile, a memo to franchisees from RFG’s marketing and innovation director, Tracey Catterall, obtained by the ABC, says the company is planning to “win back the hearts and trust” of Brumby’s customers in a campaign involving newspaper advertisements and social media.

Read More : Brumbys chief quits over carbon advice

From : brisbanetimes.com.au
By : Larissa Ham

Franchisees have been reminded they are personally liable for their business decisions, even if the advice comes from head office.

The warning comes in the wake of last week’s apology from Brumby’s Bakery, after it attracted criticism for advising its members, via an internal newsletter, to raise their prices and ”let the carbon tax take the blame”.

The Franchise Council of Australia has sent a memo to its members reminding them of their legal obligations, and the dangers of blaming outside factors such as the carbon tax for raising prices if claims could not be proven. If the Australian Competition and Consumer Commission finds wrongdoing, it can issue warning letters, infringement notices of $6600 or take court action with fines up to $1.1 million.

Read more: Brumbys carbon tax misfire a legal warning for franchisees

Brumby’s have posted an apology on their Facebook page in regards to the leaked memo about price rises and the carbon tax.

It Reads:

“Dear Customers

Brumby’s would like to offer our sincerest apologies to our valued customers regarding any concerns they may hold in connection with the pricing of our products or the suggestion that increases to them may have been caused by the Carbon Tax. Brumby’s has maintained a strong and engaging customer focus for over 30 years based upon honesty and transparency. Our Brumby’s franchisees also pride themselves on delivering an exceptional customer experience based on quality products that represent great value for money. 

We genuinely regret this incident and unreservedly apologise for what is an isolated and unacceptable error of judgment on the part of management. We are committed to regaining your trust and ensuring Brumby’s great products and exceptional value well into the future.”

From www.smh.com.au
By : Judith Ireland

The consumer watchdog is questioning a major bakery franchise following an internal newsletter that advised bakeries to put up prices and ”let the carbon tax take the blame”.

The Australian Competition and Consumer Commission is currently looking into Brumby’s Bakery - which bills itself as one of Australia’s ”largest and most successful franchise groups” - about potentially misleading claims about the tax.

In a copy of a June 2012 “Backmix” newsletter - first detailed in the West Australian - Brumby’s managing director Deane Priest provides tips to ”find some extra sales”.

Read more: http://www.smh.com.au/small-business/franchising/brumbys-carbon-tax-claims-under-microscope-20120704-21guv.html#ixzz1zfKZcIr5