HomeNEWSGloria Jean’s coffee franchise up for sale

Gloria Jean’s coffee franchise up for sale

The chain is originally from Australia, with the New Zealand franchise created in 2003 by Paul Ewing.

It has more than 900 coffee houses in 39 countries. Last year, its parent company Gloria Jean’s International was bought by Retail Food Group for AU$163.5 million.

The New Zealand franchise has been steadily increasing its turnover in recent years.

Though it doesn’t disclose its numbers, its uptake of coffee beans shows how it’s sales have grown.

In the 2012 to 2013 financial year, the New Zealand stores bought 11.7 tonnes of roasted coffee beans.

This increased to 14.5 tonnes in the 2014 to 2015 year, and is forecast to hit over 17 tonnes in the 2015 to 2016 financial year.

Bayleys broker Tony van Camp says the brand is poised to enter a new wave of growth.

“The Gloria Jean’s brand has traditionally been very much focused in the bigger centres. There is therefore a big growth opportunity to establish outlets in provincial centres as the competition has done,” van Camp says.

Gloria Jean’s competition includes the likes of Esquires, which has 25 stores nationwide, and Robert Harris, which has 36.

“This could well see Gloria Jean’s locations in the likes of Whangarei, Tauranga, Rotorua, New Plymouth, Napier, Hastings, Gisborne, Nelson, Blenheim, Dunedin and Invercargill, which all have the population bases to sustain the necessary turnover required to underpin the brand,” he says.

Van Camp says there’s also an opportunity to grow the brand’s food offering through having a production kitchen supplying all of the stores with bakery items.

“Recent food offering trials at Gloria Jean’s Featherston Street store in Wellington increased average spend by 20 percent.”

The Lorne St and soon-to-be opened Botany branch will lead the charge on food and will both have commercial kitchens added in.

The master franchise’s employees including a managing director, an operations manager and an administrator.

Any expressions of interest should be made to van Camp at tony.vancamp@bayleys.co.nz.

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