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New strategy to help relocate Gloria Jean’s franchisees

Sarah Stowe

A Continuity of Trade Strategy has been introduced at Gloria Jean's to ease the relocation process.

Gloria Jean’s Coffees has developed a Continuity of Trade Strategy, led by Damon Smith of Rockabee Consulting, to help ease the process of relocating those franchisees affected by the impending closure of Borders bookstores.

Earlier in the year Ferrier Hodgson, the administrators for Borders Australia announced a further 14 Borders stores containing Gloria Jean’s Coffees outlets will be closing. The date of closure has now been confirmed as 30 May 2011.

Smith is joining the coffee franchise’s development team for a four month contract to ensure as many franchisees as possible are relocated and can continue to trade as quickly as possible.

The relocation Strategy

“The Continuity of Trade Strategy is a Gloria Jean’s Coffees support office plan that includes the creation of a dedicated working group within the business to source new sites for those affected franchisee partners,” Troy McDonagh, general manager Australia, Gloria Jean’s Coffees told Franchising.

“This dedicated group is concentrating on negotiating leasing deals for replacement sites, managing ongoing communications with franchise partners, banks and landlords as well as the de-fit of the Borders locations and building of relocation sites.”

Since Smith’s appointment, the development team has relocated one franchisee and successfully negotiated with a landlord to allow one of the affected coffee houses to remain in the same location despite the Borders closure, as it has a street front entrance.

“This has been and continues to be a difficult time for franchise partners whose coffee houses were trading well prior to the voluntary administration announcement by RedGroup Retail. We continue to work to support them through this unfortunate situation … We are completely focused on sourcing new sites to allow them to continue trading as soon as possible,” McDonagh said.