Coffee chain Gloria Jean’s will focus its energies on franchised stores, and plans to close its existing company owned outlets.

Co-founder and executive chairman of the Australian-based coffee shop chain Nabi Saleh has indicated the ownership and operation of company-owned stores is too much of a distraction for the global business which was acquired in December by Global Yellow Pages, a Singapore-listed company.

Saleh told The Australian Financial Review, “Owning retail property ourselves is a distraction from our primary business strategy.”

Saleh indicated that by March 31 the company goal is to either have all these coffee houses successfully franchised or closed, but since then it has been agreed that the majority of these outlets will have their leases surrendered.

There are 25 company stores out of the 400 outlets across Australia that could be up for grabs, but there is no indication yet which outlets may close, or which would successfully transfer to franchisee ownership.

Saleh will continue with the company in a non-executive role.