The acquisition mode is continuing at Retail Food Group which has just announced plans to buy out the New Zealand based The Coffee Guy group, a business that started with a focus on mobile coffee services..

Founded in 2005 the mobile coffee business now comprises 55 espresso vans and has branched out into drive-through locations, some ‘hole-in-the-wall’ outlets, and has plans and designs for other fixed-site venues.

Retail Food Group has entered a conditional sale and purchase agreement for the business, priced at about NZ$5.5 million.

RFG’s chief executive, Tony Alford, said “The TCGG concept incorporates proprietary mobile coffee van technology, conspicuous brand imagery, van and outlet livery, an uncomplicated operational and franchisee service structure, relatively inexpensive new franchisee entry costs and demonstrated capacity for organic growth.”

Alford said the system is ripe for international growth and would increase RFG’s penetration outside of shopping centres and strengthen the group’s coffee offer, both at customer, and supply level – RFG owns Evolution Coffee Roasters.

The founder and CEO of The Coffee Guy Group, Richard Karam, will remain with the business following the sale and is expected to head up the concept’s entry into Australia.

Karam said “During the past seven years we have focused on developing a world class system and brand and this transaction will allow us to accelerate our growth plans.

“RFG’s future stewardship of The Coffee Guy Group will also provide management depth and international franchising experience that will ensure our franchisees obtain enhanced operational and marketing support along with growing brand recognition as we expand our retail presence,” Karam said.

RFG will also diversify its coffee offer at Donut King and the Esquire Coffee Houses, with new sites to include drive-through facilities. 

The drive-through concept will be introduced from December 2012. Read more here.