End of an era? Hog's Breath restaurant chain could be wiped out 'in two years' as franchisees battle to make profit
- Hog's Breath restaurant chain could disappear from Australia within two years
- The steakhouse franchise has seen a dozen closures across the country this year
- CEO Ross Worth blamed the closures on a 'downturn in the economy'
- But franchisees say the issue is actually management not the industry
One of Australia's most popular restaurant chains could see all it's doors closed 'within two years' as franchisees battle to make a profit.
Hog's Breath Cafe, which first opened in Airlie Beach, Queensland in 1989, has seen a dozen closures this year due to bankruptcies, complaints from franchisees, and allegations of mismanagement.
Twelve restaurants have already closed this year alone, with the most recent one being in Maitland, New South Wales.
Twelve Hog's Breath Cafes have closed this year alone with the most recent one being Maitland (stock)
CEO Ross Worth blamed the closures due to a 'downturn in the economy' as well as 'customer eating habits' from the competition from nearby restaurants
Chief executive Ross Worth blamed the closures on a 'downturn in the economy' as well as changing 'customer eating habits'.
'We are also experiencing increases in operational costs with rising wages, raw food costs, rent and electricity,' he told news.com.au.
But franchisees have come forward to claim the issue is not the industry, but the company itself.
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Franchisee Desmond Francois was forced to close his Hog's Breath restaurant in Morley, Western Australia in March after declaring bankruptcy of more than $1million.
He blamed the opening of other stores such as Dominos and KFC, which have seen growth in their sales.
Franchisee Desmond Francois was forced to close his Hog's Breath restaurant in Morley, Western Australia in March after declaring bankruptcy of more than $1 million
Mr Francois said struggling franchisees had approached owners to assist them with temporary royalty discounts to boost their cashflow, but it was denied because the company could not afford it.
He claimed the restaurant could afford it after they had 'pre-tax profit of $2.2 million' for the year ending June 2018, but recorded 49 months of declining sales.
'It isn't the industry at all, the problem is Hog's Breath,' Mr Francois told the publication.
Hog's Breath Cafe changed it's name to Hog's Australia's Steakhouse in hopes of restructuring the brand despite declining profits.
Mr Francois said he has spoken to other franchisees and said they were not given any support during their tough times
Mr Worth rejected the claims, saying the last 30-years had been the 'toughest' for the industry as they tried to adapt to the new eating habits of customers.
He also insisted they worked closely with franchisees to help them manage costs from food to bills, as well as ongoing training.
However, Mr Francois said he has spoken to other franchisees and said they were not given any support during their tough times.
He said franchisees become 'voiceless' once they've invested in the company and have no control over any decisions.
Daily Mail Australia has contacted Hog's Breath Cafe for comment.
