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Thread: Gloria Jeans Australia taken over.

  1. #1
    Senior Member Yelta's Avatar
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    Gloria Jeans Australia taken over.

    Gene Cafe Coffee Roaster $850 - Free Beans Free Freight
    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. #2
    Senior Member mwcalder05's Avatar
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    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

  3. #3
    Senior Member Yelta's Avatar
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    Quote 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, BeanBay'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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    Quote 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, BeanBay'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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    Quote 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.

  6. #6
    Senior Member Rocky's Avatar
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    and a lot of people (mostly Americans) really like Oprah Winfrey.

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    Quote 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.

  8. #8
    Senior Member Yelta's Avatar
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    Quote Originally Posted by danq View Post
    Well... 700 outlets, I guess McDonald's, Pizza Hut etc. also serve a lot of happy customers.
    Exactly.

  9. #9
    Senior Member Barry O'Speedwagon's Avatar
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    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).

  10. #10
    Senior Member Yelta's Avatar
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    Quote 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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    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

  12. #12
    Senior Member Bosco_Lever's Avatar
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    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.

  13. #13
    Senior Member Yelta's Avatar
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    Quote 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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    Senior Member Bosco_Lever's Avatar
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    Quote 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.

  15. #15
    Senior Member Rocky's Avatar
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    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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    If you thought an RFG franchise was a worthy business option to buy into then read page 18 of The Gold Coast Bulletin Nov 5.
    Its amazing how the small franchisees get shat on by the bigger corporate giants .I would say there are a few Michels Pattisserie franchisees who are feeling very bitter at the moment too.

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    Gloria Jeans was a Hill$ong business which wrote a very large cheque(s) to support ACL in their fight against equal rights for gays, science, billboards they take offence to, etc.
    That was reason enough to boycott.

    As for Retail Food Group, my first office job ever was at their gold coast head office as a junior. Extremely toxic work environment, centred around 1-2 individuals. One of my jobs was filing, and one day I saw the ex-employees file. 44 ex-employees in a 12 person office going back only 3 years. The next day I started going out looking for work in my lunch breaks; the following week I was fired for no discernible reason. Over 20 years later I've never had anything but employers beg me to stay in every subsequent position. What I remember is this: they had a few star locations that made good money - the rest were somewhere between break even and slow death. They used the stars to sell a package that was $300k at the time, for what boiled down to 30k of equipment and a ~100 page word document, most of which was double spacing and common sense. Massive con in my humble opinion.

  18. #18
    Senior Member GrahamK's Avatar
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    Quote Originally Posted by KiteStyle3 View Post
    Gloria Jeans was a Hill$ong business which wrote a very large cheque(s) to support ACL in their fight against equal rights for gays, science, billboards they take offence to, etc.
    That was reason enough to boycott.
    Agree, not to mention the very questionable Starbucks style coffee. Not sure if my imagination and/or changing tastes, but GJs had better coffee in their earlier days, and before I knew they were owned by Hill$ong business. (there was a GJ next to my workplace in Brizzy at that time, so used them from time to time).

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    Why does everyone think Hillsong own Gloria Jeans.

    They do not !!

    The owner of the master franchise is a member of Hillsong, that is the only connection.

    Nearly all of the stores are owned by individual small business's who are struggling like everyone in todays economic times.
    To boycott stores because one persons beliefs just puts in risk the jobs of hundreds of young people who want to get a start in the coffee industry.

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    Quote Originally Posted by Goofie11 View Post
    The owner of the master franchise is a member of Hillsong, that is the only connection.
    Nabi Saleh is an elder (more or less a board member) of Hill$ong, not quite an average member.
    The international franchise arm of GJ is called "Praise International North America Inc"

    Quote Originally Posted by Goofie11 View Post
    To boycott stores because one persons beliefs just puts in risk the jobs of hundreds of young people who want to get a start in the coffee industry.
    If you want to argue that then it's equally valid to argue that this particular franchise group puts at risk the livelihoods of hundreds of young people who want to start or continue their own independent coffee shops without paying a massive franchise fee (brand name tax) where a good chunk of the buy-in money flows back to support religious political pressure groups.
    BangalowBarista likes this.

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    .....and there goes Di Bella.

  22. #22
    Senior Member GrahamK's Avatar
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  23. #23
    Super Moderator Javaphile's Avatar
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    Even has its own thread! http://coffeesnobs.com.au/general-co...hats-name.html


    Java "" phile
    Toys! I must have new toys!!!

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    the gloria jeans in elsternwick closed suddenly one day last year with no warning. all their gear is still in there over a year later.. maybe i should grab their heavy duty machine

  25. #25
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    I have had no experience of drinking Gloria Jean’s or Di Bella coffee.

    The shiny charcoal in GJ’s bean storage bins had put me off trying it.

    I wonder if being under the same owners that the quality standards are going to meet somewhere in the middle.

    Barry

  26. #26
    Senior Member chokkidog's Avatar
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    No, but you might find the same beans from the same ship load at GJ's, di Bella's and Veneziano.

    The only difference.... one burnt roast, one medium roast and one light roast. ;-D
    GrahamK and TC like this.

  27. #27
    Senior Member GrahamK's Avatar
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    Opportunities no doubt for smaller roasters. Some people still prefer boutique style, with Di Bella & Venezanio both going large.

    GrahamK
    chokkidog likes this.

  28. #28
    Senior Member GrahamK's Avatar
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    Gloria Jeans is an inspiration on how NOT to do things as far as I'm concerned if you enjoy coffee.
    elbeano likes this.

  29. #29
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    RFG.Accountants,shareholders,profits.You dont shell out multi millions for the love of COFFEE.Its to make more million$.Market domination and then total control.
    Business's must run at a profit and this is how these folks go about it,they are an Aussie Company, so that is a good thing.....I suppose.

  30. #30
    Senior Member ArtW's Avatar
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    Quote Originally Posted by chokkidog View Post
    No, but you might find the same beans from the same ship load at GJ's, di Bella's and Veneziano.

    The only difference.... one burnt roast, one medium roast and one light roast. ;-D
    Hmmm, I regularly use Di Bella beans and I like it, a lot. Their espresso blend is a darker roast than many but I think its excellent, I also like their Fellici blend. If you don't believe me and you're in Melbourne, go to Market Espresso next to the carpark in Queen Vic Market and have a taste.

  31. #31
    Senior Member Yelta's Avatar
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    Quote Originally Posted by chokkidog View Post
    The only difference.... one burnt roast, one medium roast and one light roast. ;-D
    vive la différence

    chokkidog likes this.

  32. #32
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    Behmor Brazen - $249 - Free Freight
    I think that some of these large coffee chains make money out of making coffee that tastes better than instant. As most people out there drink instant at home, anything better tastes good to them so there is a big market for it.

    Thank goodness we have a growing number of independent cafes who produce good coffee.

    Barry



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