Dark Days: Oporto and Red Rooster Might Be Closing Up Shop

Vale Oporto and Red Rooster?

If you haven't had a Bondi Burger from Oporto or a Flayva Wrap from Red Rooster in some time, it might be time to take one last trip for memory's sake.

According to a submission put forward to a Senate Inquiry, a group of franchisees (in this case, independent owners who buy a branded store), including Red Rooster, Oporto and Chicken Treat, have complained that the business model of their parent company, Craveable Brands, is causing them to go bankrupt.

The franchisees argued that Craveable's business model was hurting their profits and success, and had already led to the shutdown of certain Red Rooster stores around the country.

"There are many more on the verge of bankruptcy," the franchisees claimed.

"The business model needs to be questioned and rectified prior to more franchisees becoming bankrupt."

Because Oporto and Red Rooster are owned by the same parent company, they're unable to create new flavours and ideas that cause direct competition between each other.

"The common complaint for Red Rooster chicken has been 'it is the same chicken, which is available at the local supermarket for half the price'," the franchisees said.

"[But] a simple move like adding flavours and sauces cannot be done because that competes directly with Oporto, Red Rooster's sister brand."

Craveable has told Sydney Morning Herald that they are surprised with the franchisees' frustrations. 

"We don't believe the submission reflects the views of the vast majority of Craveable franchisees," the spokesperson said.

The submissions from franchisees closes today and we will find out further details later this year in September.

Let's just hope this gets resolved in a timely manner, lest we live in a future where food courts don't have an Oporto or Red Rooster.

Photo: Instagram (redrooster_au) / Instagram (oportoaustralia)