After a remarkable 125-years, Ferguson Plarre Bakehouses remains the ultimate family bakery chain. 

From the moment Eliza Ferguson opened her Melbourne cafe in 1901 to today’s thriving franchise network of 80 stores under the Plarre family’s leadership, the brand has mastered the rare art of staying personal at scale.

Brothers Steve and Mike Plarre are the fourth-generation powerhouses driving the brand; Steve is CEO, while Mike heads up the bakery.

A family firm with a long-term perspective

“We’ve successfully passed the baton across multiple generations, which is no small feat,” Steve says.

“As a fourth generation owner, I’m aware that decisions made by my grandfather still impact the business today. 

“So many businesses are worried about the next quarter, the next year, especially if they’re publicly traded and their investment time lens is different.”

Ferguson Plarre’s long lens works to the brand’s favour. It delivers a perspective focused on enduring value, strategies and relationships.

“Our family-owned business allows us to invest for a longer term and I think that is the differentiator,” Steve says.

For the brothers, growing up in the family business meant rolling up their sleeves from day one.

“I was head of cleaning for about five years, and had a number of other roles.” Steve reveals. “As a next-generation family member you need to know how hard it was to build the business.

“We say to our kids, you have the surname that gets you the job interview and the rest of it is up to you. You get a head start around culture and values and learning about the business around the dinner table when you’re a kid. But when it comes to the crunch, you’ve still got to be the best person for the job.”

Bringing retail and baking expertise together

This iconic Victorian business has a dual family history. As Eliza Ferguson’s business blossomed under the guidance of her son Percy, the bakery founded in 1911 by Otto Plarre was also flourishing. 

From the challenges of war time restrictions to providing cakes for Queen Elizabeth II and President Lyndon Johnson, the family firms proved themselves resilient, competitive and on top of their game.

Decades of mutual respect led to a landmark merger in 1980, blending the Plarres’ manufacturing prowess with the Fergusons’ retail brilliance.

When family strategies eventually diverged in 2012, the Plarres took the helm, implementing a robust board structure to ensure professional clarity. 

Strong governance takes the family business to the next level

This governance has been instrumental in navigating leadership challenges with professional clarity.

The Plarre brothers have separated the leadership that they share into distinct roles: executives, directors and owners.

“It’s vital to separate those conversations because they all have very different risk and reward elements to them,” Steve explains.

“On a daily basis, my brother reports to me and he’s super comfortable with that. In the boardroom, we’re both directors, and we’re very disciplined about which ‘hat’ we’re wearing.”

This leadership structure is bolstered by an advisory board of experienced directors.

“We really value their objectivity. At this scale, even small decisions have big ripples. Mike and I have never worked anywhere else, so we stay genuinely curious and seek informed, expert opinions to keep us sharp.”

A customer-first mindset

The business was built on listening to the customer and this customer-first mindset dates back to Otto Plarre himself. When his fancy European treats failed to delight the locals, he had to adapt and perfect the meat pies and custard tarts his customers craved.

“There’s always a challenge between tradition and innovation,” Steve points out. “So sometimes we’ll head off on flights of fancy but we protect our brand by remembering we are a classic Aussie family bakery. The products that sell best are still a great custard tart, a chocolate eclair, a vanilla slice.

“For our brand, new twists on old favourites is the way that we innovate.  We have a very loyal customer base – about 40 per cent are retirees, and if they don’t undersnd it, then it’s just not going to sell.

“We have our market position printed on a couple of posters just to remind everyone ‘this is the lens’. We don’t play outside of this box unless there’s an incredibly compelling reason and that helps keep it simple while innovating a little bit,” Steve says.

Heritage and innovation baked together

As this favourite Victorian chain continues to expand across the state, it sustains that mix of heritage and innovation that has, for more than a century, kept customers returning.

And now, Steve forecasts a revival of authenticity, a return to unpretentious baked treats that perfectly suits this Aussie classic.

“That picture-perfect AI-crafted trend, that’s not us, and it’s hard to do at scale. I think there will be a flip back to the humble, ‘just make it taste good’ approach. It’s about being genuine, and I think there’s always a place for that,” he says.

More than a century on, the authenticity and family traditions established by Eliza and Otto, still run through the heart of the Ferguson Plarre bakery chain. 

“We’re a family business and everyone knows each other’s names, and we have families running our stores. We attend celebrations, weddings and funerals,” Steve says. “That level of connection is something many modern bakeries have lost, but it’s exactly what keeps us thriving.”