Franchise Case Study: Michel's Patisserie

CASE STUDY– Michel’s Patisserie (Retail Food Group)

Jerry Gu joined the Michel’s Patisserie franchise system in 2004, purchasing a Michel’s Patisserie at Westfield Southland Shopping Centre. He later went on to purchase his 2nd Michel’s Patisserie in 2010 at Thrift Park.

Jerry is originally from China and after studying economics at university in 1989, he migrated to Australia in search of better opportunities. Jerry said, “I worked as a dishwasher at both a nightclub and a restaurant and worked at Toyota while studying for a Business Management Degree at Monash University. I was employed for nearly 19 years in various corporate positions at Toyota, the multi disciplined training and exposure in that role prepared me well for running my own business.”

Jerry is married with 2 sons and says, “My family is my number one priority. One of the reasons that we decided to buy a business back in 2004 was because my wife wanted a change. The Michel’s Patisserie business grew over a period of years and I was able to leave my full time role and join my wife in the store.

A typical day for me involves being at the store early and closing at night. The benefit of having my own franchise business is that I am able to sneak off during the day to my son’s school for special events and activities. Part of the simplicity and beauty of the Michel’s system is that the product is prepared in a central bakery and then delivered to your store; so minimal preparation of the patisserie product is required in store. It’s important to do your research when you are looking for a business to purchase. We initially had a friend who owned a Michel’s and spoke highly of the system, we then spoke to and visited as many existing franchisees in Victoria as we could and when a new site opportunity came up in Westfield Southland we didn’t hesitate, we took it. You don’t need to have any food or retail experience before buying a store as the training at the academy over 4 weeks is comprehensive, rigorous and intense. You also have ongoing support from a Business Development Manager. The support is very good and they are always there to assist once you graduate from training and are working in your store.

When we purchased Southland, we borrowed money from the bank and had financial support from a wealthy relative. When we approached the bank for our second store they were very happy to loan us the money as they took into account our positive history of sales and business experience.”

Jerry notes that another store may be on the cards for him and offers this as a piece of advice for migrants looking to purchase a franchise business – “Be prepared to work hard and you will get your reward!”

RFG National Sales and Leasing Co-ordination Manager Faith Manning states, “We look for candidates with a high level of communication and the ability to offer great customer service. RFG enjoys an accredited relationship with a range of Australia’s leading banks, meaning that the bank will lend to approved clients between 50% – 65% on the business alone (conditions apply).”

Michel’s Patisserie is part of Retail Food Group (RFG) Australasia’s largest multi food franchisorwith over 1150 franchised outlets under its control which includes, in addition to Michel’s Patissierie, Donut King, Brumbys Bakeries, Brumbys GO!, bb’s Cafés and Esquires Coffee Houses franchise systems.