Sydney based franchises
The ubiquitous coffee franchise began with rather modest plans. Peter Irvine, co-founder of the brand along with Nabi Saleh, quotes in his new book Win in Business, "We started the business in Australia in 1996 with plans to introduce 25 stores in 10 years." He continues "For us at the time, 25 stores was a huge vision. Little did we know that in that ten-year timeframe (to November 2006) we would have well over 400 stores in Australia. Nor did we imagine that at that time we would also purchase the franchise rights for the brand worldwide, including the rights to supply product to every country except the USA and Puerto Rico."
A brand of this size cannot be built without vision or good leadership, nor can it expand without the success of individual outlets. For the franchisees investing their future on a taste for speciality coffees, there is plenty of back-up from the franchisor, says Ian Martin, Gloria Jean's Coffees group chief executive. "We have a team of around 126 staff based in our support office in Castle Hill, Sydney who are dedicated to working and supporting our franchise partners around Australia and the world. This includes a global management team of highly experienced executives who have international franchise experience."
The company, says Martin, demands from its franchisees, above all else, passion for the brand, its mission and values. Irvine, who has stepped back from the brand, writes in his book, "As a company, Gloria Jean's Coffees has set out to become successful so that we can contribute to the effectiveness of other people and organizations, like schools, charities and churches."
Irvine's Christian roots have very much guided the focus on community activity and the business has strong supply links with the Rainforest Alliance.
So what does Martin believe differentiates the coffee chain from its competitors?
"First is our un-wavering commitment to our living our vision mission and values and support of local communities. Second we are a specialty coffee house that sells food, not a food retailer that sells coffee. This equates to a true dedication to providing handcrafted quality coffees and beverages in a personalised environment.
"Third is our industry leading franchise systems. Our franchise systems have been recognized both domestically and internationally. Most recent awards include 2006 Australian Retailer of the Year, 2006 International Franchisor of the Year and 2007 Australian Food Franchisor of the Year.
"Through our global expansion, our franchise partners in NSW and Australia now benefit from systems and tools that are at an international standard."
With fingers dipped into coffee opportunities across the globe, and a phenomenal outlet line-up here, is there still scope for the brand in Australia or is it close to saturation? Martin maintains that there are 8,500 independent coffee house operators in Australia and specialty coffee remains a growth industry.
"We believe there remains significant opportunity to further expand within the Australian market, particularly in regional Australia. This is evidenced by our ability to open approximately 75 new stores each year for past three years with a similar number expected this year.
"Our competitors are many and varied from retail branded coffee offerings to independent coffee house operators. We believe there is a place for everyone and welcome competition as it has a whole industry benefit of raising awareness and preference for specialty coffees."
For the year ahead Martin sees business as usual. "We will continue striving to achieve our vision of becoming the most loved and respected coffee company in the world. We will continue our rapid store expansion both domestically and internationally to deliver the Gloria Jean's Coffees' restaurant and cafe franchise experience to our guests worldwide."
Gloria Jeans...
- The company was first established in Australia in 1995, and the first store opened in Miranda, NSW in 1996.
- Today there are 414 franchised stores in Australia, 193 of which are based in NSW There are currently 25 multi-site franchise partners in NSW.
- Globally there are 829 stores in 29 countries around the world.
- Franchising costs vary according to site and size. The initial fee for the granting of the franchise is $50,000. Ongoing royalty is 6% of gross sales plus 2% marketing contribution.
This chic baby store that owes its name to a clever play on words –the favoured drink for little mites in polite cafe society (all froth and bubble, no coffee) and its upmarket neighbourhood – has grown from its Double Bay home to other expensive Sydney suburbs, Mosman and Chatswood, to Auckland and most recently to Launceston.
But the Franchise Council of Australia is a not for profit membership organisation that is the peak body representing the franchising sector in Australia.
16.06.2008
FCA Member
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