Show caption Muffin Break’s Natalie Brennan says fewer Australian millennials are seeking unpaid work to help them get ahead. Photograph: Alan Porritt/AAP Business Muffin Break faces backlash after boss says millennials won’t do unpaid work Uproar comes as parliamentary inquiry into Australian franchise sector prepares final report Ben Smee @BenSmee Sun 24 Feb 2019 05.17 GMT Share on Facebook

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The cafe chain Muffin Break is facing a backlash from customers after its general manager said that entitled millennials weren’t willing to do unpaid work to get ahead.

Natalie Brennan told News Corp there was “nobody walking in my door asking for an internship, work experience or unpaid work”.

The comments have been roundly criticised. Advocates for franchisees and workers say they demonstrate broader problems within the franchise sector, which small business owners have complained is based on an unsustainable business model and leaves workers susceptible to underpayment.

Last year a former Muffin Break franchisee told a parliamentary inquiry into the franchise sector he had been told to “to consider underpaying staff that I can trust”.



“The key message was that as migrants, I must be aware of other migrants or students who would gladly accept underpayments in lure of their first job and hence not report or complain,” he said.

The parliamentary inquiry is due to table its final report next month. Guardian Australia understands it will recommend significant changes to the operation of the franchise sector.

Brennan, the general manager of Muffin Break and an executive at its parent company, Foodco, gave an interview in which she said there had been a decline in young people seeking unpaid work in order to advance their prospects.



“You don’t see it anymore. Before that people would be knocking on your door all the time, you couldn’t keep up with how many people wanted to be working. In fact I’d run programs because there were so many coming in.



“In essence they’re working for free, but I can tell you every single person who has knocked on my door for an internship or work experience has ended up with a job. Every single person, because they back themselves.



“There’s definitely that inflated view of their self-importance because they have X amount of Instagram followers or this many likes. That’s dangerous.”

The Muffin Break Facebook page has been flooded with posts critical of the comments.

The Australian Council of Trade Unions secretary, Sally McManus, said millennials had “had enough of being robbed”.

Millennials have had enough of being robbed. Robbed of wages, robbed of ever having a job with paid leave, robbed of ever owning a house. Good on them. Those doing the robbing had better watch out. — Sally McManus (@sallymcmanus) February 23, 2019

Maddison Johnstone of Franchise Redress, who has been an advocate for franchisees and workers who have complained about practices at Foodco, said Generation Y and Generation X workers were the most likely to be exploited.

“A lot of people are willing to put up with exploitation because they’re desperate and fearful and really need a job,” Johnstone said. “We need to break that cycle.”

Johnstone said evidence given to the parliamentary inquiry showed the business models at many master franchise companies put pressure on franchisees and workers, and that a first step would to overhaul business models to ensure people were supported.

“[Muffin Break] should absolutely be focusing on [the inquiry’s upcoming findings] and how they can support their franchisees and how they can pay their staff properly.”

Foodco said in a statement last year, in response to the allegations that it had encouraged underpayment: “We take very seriously our obligations to ensure our franchisees comply in the important area of lawful employment practices.

“Far from encouraging this practice of underpayment, in January 2017 Foodco entered into a voluntary partnership with the office of the fair work ombudsman by way of a proactive compliance deed.