Australia Edition 5

THE MARKET

For a country widely considered to serve some of

the best espresso coffee in the world, Australians

ironically drink a comparatively low amount of

coffee by world standards - an estimated 2.4 kg of

coffee per year.

However Australian consumption of coffee has

grown dramatically over the last decade with

consumers now drinking 65 per cent more coffee

than they did in

1996.An

estimated 1.26 billion cups

of coffee worth $3 billion were served in cafes,

restaurants and hotels in the last year, with the

majority of all coffee purchases made at franchised

coffee stores (40 per cent).

Coffee franchises are one of the fastest growing

retail food sector segments in Australia with the

number of outlets estimated to have grown by 50

per cent since 2001.

As one of Australia’s leading coffee specialists,

Gloria Jean’s Coffees has played amajor role in the

development and growth of the retail coffeemarket

inAustralia.

Since first entering the market in 1996, the

company has opened over 400 stores, operating in

every state and territory of the country. TodayGloria

Jean’s Coffees is Australia’s largest and most

recognised specialty coffee retailer serving an

estimated 7 million guests each month.

(Sources: ‘Coffee inAustralia 2006-2008’report,

BIS Shrapnel, February 2006; ‘Australian Coffee

MarketKeyFacts: For 2006’AustralAsianSpecialty

Coffee Association)

ACHIEVEMENTS

Gloria Jean’s Coffees is an Australian owned and

operated global brand with over 750 coffee houses

in 25 countries includingmore than 400 inAustralia

and signed master franchise agreements in 45

countries worldwide. Since 2004, the international

branding and roasting rights for all countries

outside the USA have been proudly Australian

owned.

In Australia, Gloria Jean’s Coffees is one of

the top 25 fastest growing franchises in terms of

both revenue and number of outlets and is also

listed as one of Australia’s top 1,000 companies

(BRW2006/07).

Under Australian management, Gloria Jean’s

Coffees has been a runaway success expanding

rapidly in Australia and overseas. In 2005-06 the

number of Gloria Jean’s Coffees stores grew by 28

per cent inAustralia and a phenomenal 49 per cent

internationally, with similar growth expected in the

next fewyears.

The company’s success has assembled an

impressive trophy cabinet over the last few years.

Awards include ‘2006 International Franchisor of

the Year’ awarded by the Franchising and Licence

Association,

Singapore

and

the

PricewaterhouseCoopers Franchising Excellence

Awards ‘2005 Franchisor of theYear’.

The company has also received the highly

prestigious ‘AmericanExpress SupremeReward for

Best Retailer’ and ‘Bank of Queensland Best

Franchise’Awards presented by theNational Retail

Association at the American Express Rewards for

Excellence.

Last year Gloria Jean’s Coffees also won the

Premier’s NSWExporter of theYearAwards ‘2006

Emerging Exporter Award’ and the

PricewaterhouseCoopers Excellence inFranchising

Awards ‘Franchise ExportAward of theYear 2006’.

HISTORY

The Gloria Jean’s Coffees story began in 1979 in a

small town just north of Chicago, USA where the

company’s namesake, Gloria Jean Kvetko and her

husband Ed saw the opportunity to offer specialty

gourmet coffees in awarmand friendly atmosphere.

With appreciation for quality coffee growing, the

concept became a success andGloria Jean’sCoffees

stores started to appear around the USA.

In 1993Gloria Jean andEd sold the franchise for

an estimatedUS$40million and the company began

its expansion offshore – a journey that would later

take a remarkable turn to make the company an

Australian success story.

In 1995, Nabi Saleh, anAustralian businessman

internationally regarded for his coffee knowledge

and expertise, visited the USA to experience the

Gloria Jean’s Coffees brand first hand. Nabi and his

business partner Peter Irvine subsequently bought

the Master Franchise forAustralia and by 1996 the

first Australian Gloria Jean’s Coffees store was

opened in Miranda, Sydney.

By 2004Gloria Jean’s Coffees had openedmore

than 200 coffee houses across Australia and

become a national brand with stores present in

every Australian state and territory. With success

accomplished at home, Nabi and Peter set their

sights on achieving their vision to make Gloria

Jean’s Coffees a successful global brand.

They returned to the USA and by the end of

2004, had purchased the international branding and

roasting rights for all countries outside of the USA

- Gloria Jean’s Coffees globally had become

Australian owned overnight.

PRODUCT

Gloria Jean’s Coffees is passionately committed to

creating the ultimate coffee experience for every

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