Gloria Jeans leading the charge of fast coffee

“Coffee chains, such as Gloria Jeans and Mc Café, have positively affected coffee consumption by attracting into the ‘café society’ additional segments of the Australian public,” says Dr Sandro Mangosi, author of the study.

In a companion study to their profile of the Australian fast food market, BIS Shrapnel’s Coffee in Australia, 2006 to 2008 provides a full market picture from imports to consumption both at home and in cafés and restaurants.

In 2005, the value of the Australian coffee market including instant coffee and ground and roasted beans, reached a wholesale value of $840 million. BIS Shrapnel estimates that, during the year, a total of 1.26 billion hot coffees made from roasted or ground beans were served by the foodservice industry – an increase 65 per cent over the last 10 years.

“Nowadays, ‘latte’ does not identify the snooty elite of Toorak and Double Bay.”

Despite the astronomical increase in the number of café outlets, Starbucks has had only limited success in the Australian market, with just 58 outlets country-wide so far. On the other hand, the number of Gloria Jeans and McCafé outlets increased by around 50 per cent between 2001 and 2005, bringing them close to the number one chain on the list, Michel’s Patisserie.

Dr Mangosi believes there is still plenty of room for growth.

“Australians consume an average of 2.4 kilograms of coffee per head of population each year,” he says. “This is a long way behind the consumption recorded in many other countries with a coffee culture. For instance, Japan consumes an average 3.3 kilograms per person, with Italy averaging 5.4 kilograms per head and some Scandinavian countries consuming 10 kilograms or more.

“The next opportunity in the Australian coffee market is in fast coffee, costing less than the current sit down prices. The extra kilos consumed by other developed countries are not made up by consumers sipping coffee and ‘relaxing’ in expensive premises, but rather by quick service to people with little time to spare and needing an energy boost. In general, in a well organised café the waiting time should not exceed a couple of minutes”.

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