Gloria Jeans Coffee expanding in New Zealand

5:00 AM Saturday January 21, 2017 True Commercial

Gloria Jeans Coffee (GJC) has carved out a point of difference in the tough New Zealand coffee market.

The Gloria Jean's Coffees (GJC) Master Franchise for New Zealand has been taken over by an operator promising, “a new culture for the New Zealand franchised coffee market”.

Entrepreneur Eric Chase, the managing director of GJC in New Zealand, began his working career as a baker in Brisbane almost 40 years ago, going on to own and run franchises in Australia, the United States and New Zealand.

Eric has put together a team of top professionals who are out to bring something fresh and new to the New Zealand food and beverage franchise industry.

Established in Chicago in 1978, Gloria Jean’s Coffees has grown to become one of the world’s best known barista-made coffee brands. In 2003 it began introducing New Zealanders to its premium coffee products.

Eric points out that New Zealand has one of the most advanced and sophisticated coffee markets in the world.

“The Flat White was created in Wellington and we (as a people) probably do more business now around a coffee than we do in front of our computers. For a global franchise to succeed in New Zealand, it must have a personality that encapsulates the local culture and lifestyle,” Eric adds.

GJC brand experience manager, Holly Chase, says Gloria Jeans NZ has pioneered a fresh and innovative look and feel in this country.

“Several GJC stores in NZ have become the envy and inspiration point for many international Gloria Jeans franchise operators,” says Holly.

“This leadership is something we take great pride in and intend to continue to maintain the highest of standards. We strongly believe that creating a unique offering across the stores that has individual personalities and speaks to both the location and franchisee operators will create stronger guest engagement offering a total brand experience that differs and surprises from store to store, ultimately setting us apart in the food and beverage franchise marketplace,” says Holly.

This year Gloria Jeans, will also begin a two-year roll out of new beverage products and food offerings.

GJC will embark upon an aggressive expansion programme that will see the brand extend outside the major cities and towns, and introduce a variety of food and beverage delivery platforms Eric describes as, “previously unseen here”.

Gloria Jeans in New Zealand has the full backing of the global Master Franchisors, Retail Food Group in Australia, which has seen its Kiwi franchise repetitively steal a march on its rivals through innovation.

Eric Chase: “We have all been blown away by how advanced Retail Food Group’s operations are across all areas, specifically when it comes to coffee technology, market research, new product development and remaining at the forefront of new trends".

“Knowing that a world leader is right behind us, gives us the confidence to press forward. Our staff receive regular training in Australia which has inspired us to partner with our key local suppliers to provide additional local training for Gloria Jeans franchisees.

“We realise too that our franchisees not only need product support, which due to the Gloria Jeans’ group buying power, delivers the best trade prices to the franchised stores, but also administrative support which is critical to good store management.”

Gloria Jeans has partnered with small business banking units, a major accountancy firm and an accounting software provider to assist its franchisees.

“Few franchisees think about the day when they themselves come to sell their business or even get a bank loan for expansion, but that buyer or bank will want to see accurate financial statements", says Eric.

The new culture treats franchisees as investors. What an investor pays for the franchise is treated as an investment and every investor has a right to expect a return on their investment. So, a franchisee who works in the business not only earns a salary but also a regular dividend, depending on the performance of the business.

“The Gloria Jeans Master Franchisor has a vested interest in a successful franchised store,” Eric points out.

“We do not believe in costing the franchisee too much up front. Obviously, we must cover basic expenses but we make our money from franchise fees,” he says.

“We have little interest in adding on extra mark-ups or commissions on expensive items for the franchisee to pay when we can pass on competitive trade prices to the franchisees.”

Gloria Jean’s Coffees now represents a real value proposition for new franchise owners. There are new stores being built and the Master Franchisor is also acquiring existing coffee shops and converting these to the Gloria Jeans brand. This provides a wide variety of franchisee opportunities for investors.

Gloria Jeans franchises are available now from as little as $150,000 and a detailed Information Memorandum and Gloria Jean's Coffees Brand Kit is available for all prospective franchisees.

For all queries contact: LINK Business broker, Basil Badenhorst (09) 555 6021