Gloria Jean’s to shift to franchise-only business model

Posted by AFN Staff Writers on 19th February 2014
Gloria Jean's will shift to a franchise-only business model

Coffee store group Gloria Jean’s Coffees (Gloria Jean’s) will shift to a franchise-only business model, which will see up to 25 of its 400 Australian outlets could close or become franchise operations by the end of March 2014.

The change in business model comes after Gloria Jean’s was acquired by Singapore-based company Global Yellow Pages (GYP) in December 2013. At the time of the takeover, GYP said it believed there was significant potential for further expansion of the Gloria Jean’s brand in Asia, especially in China.

As part of the takeover, it was agreed that Mr. Nabi Saleh, the Executive Chairman of Gloria Jean’s Coffees, would continue to be closely associated with Gloria Jean’s Coffees and will retain interests in the Master Franchisee business for Australia, the US and China.

Gloria Jean’s operates over 800 coffee houses across 39 countries worldwide, and has had stores in Australia since 1996. The shift from operating its own stores to a franchise model have come as a result of the plans for further expansion, the Australian Financial Review reported.

Mr Saleh, said that owning property was a “distraction from our primary business strategy”.

“By March 31, our goal is to either have all these coffee houses successfully franchised or close,” Mr Saleh said.

It was reported that Saleh said the business was “in talks” with potential franchise partners.

The SGX-ST listed GYP is the largest publisher of directories and provider of classified directory advertising and associated products and services in Singapore, with a focus on search, SME enablement and database marketing.