Quick exits at fast food chain Oliver’s Real Food

SAMANTHA BAILEY
MARCH 1, 2019
The Australian
Organic fast food chain Oliver’s Real Food has announced its chief executive of only 10 months has resigned, days after chairman Mark Richardson stepped down.
Oliver’s gave no reason for the departures of its chairman or of CEO Gregory Madigan, a former boss at Subway in the UK.
It comes after company’s chief financial officer, Alan Lee, resigned in December. He officially finishes up with the company on Sunday.
Adding to the deluge of senior resignations was company secretary Emma Lawler, who also quit this week, with co-founder and director Kathy Hatzis appointed in her place. Ms Hatzis has been appointed interim chair after Mr Richardson resigned.
Mr Madigan was brought in as chief executive in May last year, after founder and major shareholder Jason Gunn resigned from the position. Mr Gunn was officially appointed a non-executive director of the company on Tuesday.
Yesterday, Oliver’s, which currently operates 28 “healthy” fast food stores around the country, posted first half results which revealed a widened after-tax loss of $11.5 million for the six months through December. That figure included non-cash impairments to the value of $6.752 million.
The company posted a net loss of $127,000 in the first half last year.
Oliver’s said yesterday that trade over the Christmas period had been weaker than expected and initiatives to improve foot traffic, including repricing and new product introductions, had fallen flat, while roadworks diversions at flagship stores had negatively impacted key stores.
At the end of January, Oliver’s downgraded its full-year earnings guidance after a capital raising fell short of its $7.4m target, generating just $4.12m.
The shortfall in the raising, which would have helped growth initiatives, combined with weaker trading over the Christmas and holiday period, prompted Oliver’s to lower full-year revenue guidance to within the range of $34m and $38m.
That compared to $36.9m in 2018, when the company said a weak Easter school holiday period, delays in opening outlets and a number of stores performing below expectations had weighed on earnings.
The company said in January that it expected to generate earnings before interest, tax, depreciation and amortisation loss of between $1m and $4m, subject to revenue-generating and cost-saving initiatives.
Oliver’s booked a positive earnings before interest, tax, depreciation and amortisation of $2.7m for the 2018 fiscal year.