Gloria Jean's Coffee Cafe is all set to re-enter the Indian market

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.

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.