Australian coffee cafe brand, Gloria Jean's Coffees, is
all set to re-enter the Indian market after ending its six-year long master
franchise with Citymax, the hospitality division of the Dubai-based retail
giant, Landmark Group.
According to industry sources
familiar with the development, discussions are currently on for inking an
agreement that will see Gloria Jean's make a second attempt in establishing a
foothold in the Indian coffee retail market .
Responding to queries on its
re-entry plans, the spokesperson at Gloria Jean's Coffees said: "While we
can confirm that Gloria Jean's Coffees remains committed to the Indian market,
we would not be able to share more details on our India plans as yet."
As for the
new Indian master franchise partner is concerned, the sources said that the
former president and CEO of Lavasa Corp, Nathan Andrews is the front runner and
that both parties have walked the path already. In fact, having quit Lavasa in
November 2014, Andrews has been busy putting together a business plan while simultaneously establishing
a new entity to take up the India master franchise for Gloria Jean's Coffees.
"In
fact, if everything goes as per plans, Gloria Jean's will start brewing coffee
all over again launching its first outlet in Mumbai sometime around April – May
2015," sources said.
Having already tested the India market, Gloria Jean's is likely to pursue the master franchise approach for its second stint as well but with a slight twist. Thus, bringing their 'skin in the game', the coffee retailer could pick up a minority stake in the new (Indian) entity.
Having already tested the India market, Gloria Jean's is likely to pursue the master franchise approach for its second stint as well but with a slight twist. Thus, bringing their 'skin in the game', the coffee retailer could pick up a minority stake in the new (Indian) entity.
The
expansion strategy, however, will still revolve around opening
company-owned-company-operated (coco) outlets to be able to ensure consistency
in the quality of food and beverages served
as well as customer experience across its cafes.
A typical
Gloria Jean's Coffees outlet would occupy anywhere between 1,500 to 2,000
square feet of real estate. The cost of setting up a cafe would vary between Rs
1 to Rs 1.5 crore, depending on the location i.e. shopping malls, standalone,
or office complexes.
While
shopping malls and stand-alone locations are preferred options for food and
beverages brands, a lot of international players off-late, are seeking retailing
space in office buildings / commercial complexes. This is because such
locations not only offer a very convenient eating-out environment but also a good flow of office going
crowd that patronises the stores.