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Gloria Jeans Australia taken over.

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  • Gloria Jeans Australia taken over.

    Gloria Jeans has sold out to a company named Retail Food Group for $163.5 million, making it the largest coffee retailer in Australia with 702 outlets including

    Michel's Patisserie, Esquires, B B's, Coffee Guy and Cafe2U.

  • #2
    Imagine what would happen if they roasted their coffee well! Oh wait, don't. It'll put all the little guys out of business. We thrive off people not liking their crap coffee

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    • #3
      Originally posted by Yelta View Post
      Gloria Jeans has sold out to a company named Retail Food Group for $163.5 million, making it the largest coffee retailer in Australia with 702 outlets including

      Michel's Patisserie, Esquires, BB's, Coffee Guy and Cafe2U.
      With over 700 outlets, they have more than a fair share of the Aussie market and are obviously doing something right.

      I imagine most of their customers are very happy with the coffee that is served, I sometimes wonder if it's a case of we so called Coffee Snobs not being able to see the forest for the trees.

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      • #4
        Originally posted by Yelta View Post
        Gloria Jeans has sold out to a company named Retail Food Group for $163.5 million, making it the largest coffee retailer in Australia with 702 outlets including

        Michel's Patisserie, Esquires, BB's, Coffee Guy and Cafe2U.
        I like Gloria Jeans. It used to be one of my favorite hang out cafes when I was on a tour to India. Service and coffee quality was pretty good. So no matter where, didn't like the idea of them being taken over!

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        • #5
          Originally posted by Yelta View Post
          With over 700 outlets, they have more than a fair share of the Aussie market and are obviously doing something right.

          I imagine most of their customers are very happy with the coffee that is served, I sometimes wonder if it's a case of we so called Coffee Snobs not being able to see the forest for the trees.
          Well... 700 outlets, I guess McDonald's, Pizza Hut etc. also serve a lot of happy customers.

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          • #6
            and a lot of people (mostly Americans) really like Oprah Winfrey.

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            • #7
              Originally posted by Rocky View Post
              and a lot of people (mostly Americans) really like Oprah Winfrey.
              You didn't see the turnup at the Sydney Opera House a couple of years ago then Rocky...

              Mal.

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              • #8
                Originally posted by danq View Post
                Well... 700 outlets, I guess McDonald's, Pizza Hut etc. also serve a lot of happy customers.
                Exactly.

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                • #9
                  Well franchise chains aren't about serving the best coffee in the world (or the town). They're about serving a homogenous product of quality that the average Joe thinks is quite ok in many locations, economising on marketing/advertising/brand development costs (coz you've got the same total product in each outlet) while still giving the local proprietor (franchisee) a hard incentive to work his/her backside off. There will always be a market for that sort of operation me thinks....certainly doesn't bother me (don't think I've ever had their coffee).

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                  • #10
                    Originally posted by Barry O'Speedwagon View Post
                    that the average Joe thinks is quite ok (don't think I've ever had their coffee).
                    Their strength is the fact that they are aiming their product at and will be seen to be acceptable by the average person (whatever that means) which of course gives them an enormous potential customer base.

                    Yep, I've had their coffee! it was ok, the earth didn't move, nor did I need to seek treatment at the local emergency room, it was, well, average.

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                    • #11
                      What put me off trying G J’s coffee is that they roast their beans to charcoal.

                      I tried Charbucks when they first came here and once was enough for me.

                      Enough people must like it that way to keep them in business.

                      Barry

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                      • #12
                        Gloria Jeans had a fantastic franchise model when they first opened. They understood the market and opened in prime locations. Banks used to lend up to 60% of the franchise cost, just on the brand alone. This was based on their sound and proven "business" model. The Australian coffee market has since matured, and GJ and others did not move with the times.
                        These days the franchises (GJ, MP etc) need a major overhaul.
                        Franchisees need more training, both in products, service and how to run a business.
                        Quality control needs to be vastly improved.
                        The business model is stagnant and out of date.

                        Just because you serve good coffee does not mean you know how to run a successful business.

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                        • #13
                          Originally posted by Bosco_Lever View Post
                          Just because you serve good coffee does not mean you know how to run a successful business.
                          And just because you know how to run a successful business doesn't mean you know how to make and serve good coffee.

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                          • #14
                            Originally posted by Yelta View Post
                            And just because you know how to run a successful business doesn't mean you know how to make and serve good coffee.
                            It is a lot easier to make good coffee than it is to run a successful and profitable business.

                            Fixing the quality of coffee is easy, fixing a failing business is not.

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                            • #15
                              Running any business is a huge challenge.
                              So many factors to manage, many of which may be beyond your control.
                              Just keeping good (well trained) staff behind the machine is one of the biggest.
                              I just watched my favourite cafe go from 'best in town' to 'also ran' with a change of ownership.
                              One wonders what the new owners are making of it all.

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