coffee company WORLDWIDE To be the most LOVED & RESPECTED OUR DREAM

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1 BRAND profile KIT

2 OUR DREAM To be the most LOVED & RESPECTED coffee company WORLDWIDE Gloria Jean s Coffees are welcome the world over because we are committed to making our local coffee houses a community success story. You can see that coffee and people are our passion. We are proud to play a significant part in the happiness of somebody s day. Knowing just how you like your coffee, before you even have to ask, and there s always something new to taste. Familiarity and product innovation it s what keeps our guests coming back for more. 3

3 A SNAPSHOT EXCEPTIONAL COFFEE, Personalised Service atmosphere AND A V I B R A N T Since first entering the Australian market in 1996, Gloria Jean s Coffees serves more than 35 million guests each year across the country in over 300 coffee houses. That s a lot of great coffee. Where we were once satisfied with a simple cup of coffee, that s certainly not the case anymore. Australians of all ages love quality, speciality gourmet coffee. It s part of our morning ritual dropping into our local coffee house. We don t officially wake up until there s one in our hand! Our tastes have become more and more sophisticated, and Gloria Jean s Coffees has been there to satisfy that thirst along the way. With research, our product range has evolved alongside the country s changing tastes and trends. Innovation is our heartland it keeps things fresh for our guests and helps boost sales year round. We re proud to be an award-winning, Australianowned company; we attribute much of our success to our strong network of Franchise Partners. Nobody works alone we provide our partners with world-class training and guided by our proven franchise operating model, our Franchise Partners receive. Along with the ongoing support they need to help their coffee houses grow from strength to strength.

4 WHY FRANCHISING? ABOUT THE OWNER RETAIL FOOD GROUP LIMITED is a Australian L E A D I N G It allows you to own and operate your own business with the backing of an established, proven retail approach and management system. Franchising is a very popular and successful business format.franchising offers business buyers the opportunity to be in business for themselves, but not by themselves. The benefits of being part of a franchise system are significant, giving you access to: The competitive edge of a well-known brand Established and proven business systems RETAIL FOOD BRAND MANAGER & FRANCHISOR Sophisticated supply chain solutions Gloria Jean s Coffees is a well-loved brand and now part of Retail Food Group (RFG), Australia s largest multi brand retail food franchise operator. Greater brand awareness through the visibility of the brand RFG s proven business models and support systems have been perfected over 25 years of operation, and the company has built an experienced and highly skilled support network to ensure the success of our franchise networks. Enhanced advertising frequency and marketing opportunity A broad range of products, services and training programs RFG commenced in 1989 as the owner and manager of approximately 50 Donut King and bb s Café stores. RFG now has 11 franchise systems, boasting in excess of 2,400 outlets across more than 50 international territories. Offering high quality products, innovative store designs and exceptional guest service, RFG s franchise systems are some of the most successful in Australia. RFG is the owner, developer and manager of the Donut King, Brumby s Bakery, Michel s Patisserie, bb s Café, Esquires, Gloria Jean s Coffees, It s A Grind, The Coffee Guy, Café2U, Pizza Capers Gourmet Kitchen and Crust Gourmet Pizza Bar franchise systems. In addition, the Company is a significant wholesale coffee roaster supplying existing Brand Systems and third party accounts under the Di Bella Coffee, Evolution Coffee Roasters Group, Caffe Coffee, Roasting Australia and Maranatha LLC coffee brands. opportunity Franchising offers business buyers the to be in business for themselves, but not by themselves. 6

5 WHO IS GLORIA JEAN S COFFEES? Gloria Jean s Coffees was founded in the USA and brought to Australia almost twenty years ago with the sole ambition of serving the best coffee in the country. We now have more than 300 coffee houses and a presence in every Australian state and territory and we re not stopping there! 2012 The Australian Business Award Winner for Community Contribution (Australian 1995 Nabi Saleh, an Australian businessman internationally recognised for his coffee and tea expertise, together with his business partner visited the USA to experience the Gloria Jean s Coffees brand. They saw an immediate opportunity to launch the gourmet coffee brand in Australia 1996 First franchise coffee house opens in Miranda, Sydney Australia By now more than 200 coffee houses have opened across Australia with coffee houses present in every state and territory. Next step was to make Gloria Jean s Coffees a successful global brand, which included the purchase the international branding and roasting rights for all countries outside of America and Puerto Rico The brand was recognised as Franchisor of the Year (Pricewaterhouse Coopers Excellence in Franchising Awards) 2006 The brand was awarded Food Franchisor of the Year (Pricewaterhouse Coopers Excellence in Franchising Awards) Silver Medal in the Sydney Royal Coffee Competition (Sydney Royal Coffee Competition) 2007 The brand was awarded Food Franchisor of the Year (Pricewaterhouse Coopers Excellence in Franchising Awards) Silver Medal in the Sydney Royal Coffee Competition (Sydney Royal Coffee Competition) 2008 The brand won more accolades including: Franchise Innovation of the Year (MYOB Excellence in Franchising) Australia s Top 1000 Companies (BRW) Green Globe Award (Rainforest Alliance Corporate) 2009 Global ownership of the Gloria Jean s Coffees brand was achieved, with a buy out all retail and franchise operations from the USA. International Franchisor or the Year (MYOB Excellence in Franchising) 2010 Marketing Excellence Award (Franchise Council of Australia) Retail Leadership Award (International Asia Retail Congress) 2011 Gold Medal Syphon Category (CSR Golden Been Roaster Awards) Top 500 Private Companies (BRW) Business Awards) The Australian Business Award Winner for Innovation (Australian Business Awards) Bronze Winner Espresso Class (Sydney Royal Fine Food Show Coffee Competition) Bronze Winner Cappuccino Class (Sydney Royal Fine Food Show Coffee Competition) 2014 Gloria Jean s Coffees is acquired by the Retail Food Group (RFG), Australia s largest multi brand retail food franchise operation 2015 Gloria Jean s Coffees now has over 300 coffee houses in Australia and close to 800 coffee houses in over 39 markets worldwide

6 OUR MENU Hand-Crafted High Quality HOT & COLD SPECIALITY DRINKS special WHY WE RE Our award-winning business model a large successful international network that offers a comprehensive programme of business management training, a broad product range, advertising, marketing, public relations, training and operational support Proven global operating system leading edge thanks to almost two decades of market experience and ongoing research and development Barista-trained coffee specialists from handpicking our coffee beans to handcrafting each individual cup, our brand guarantees award-winning quality coffee Innovative product range never standing still but continually researching and updating our products to lead the way in tastes and trends Buying power our established vendor relationships means we can purchase exclusive coffees, supplies and merchandise at a saving to our franchisees Solid international brand positioning always keeping our brand top of mind with year round marketing, advertising and innovation Strong social conscience collaborating with Rainforest Alliance to protect ecosystems and support sustainable coffee-growing communities, and the establishment of our With Heart foundation to help build and change lives in local communities around the world As the coffee specialists from bean to cup, we offer 30 varieties of single origins, blends, flavoured infusions and decaffeinated whole bean coffees available to enjoy at home. Our drink range includes exclusive tea offerings, refreshing iced coffees, Fruzies (fruit iced blended drinks) and indulgent specialties! Our drinks menu is divided into three coffee house Bars. ESPRESSO BAR Our Espresso Bar serves handcrafted hot beverages made from our Original or Sereno proprietary coffee blends. Our range includes all the classics from Cappuccino to Macchiato, to specialties like our Caramelatte and delectable Crème Brûlée Latte. FAVOURITES BAR Our Favourites Bar includes Hot Chocolates, exquisite signature blend Teas, a special Kids menu and the option to customise your own coffee. CHILLER BAR Our Chiller Bar offers refreshing Chillers including Espresso Chillers with a twist like our Mudslide Mocha, Over Ice options such as our Signature Iced Coffee or Iced Tea, Fruzies fruit chillers, and a selection of Chocolate Chillers. We invest in consumer research to ensure our beverages and merchandise offerings keep up to date with trends and support sales. This includes our very own Gloria Jean s Coffees whole beans and capsules range so our guests can continue to enjoy their favourite coffee at home. In addition to our drinks menu, we also offer seasonal suggestive food items for our guests to enjoy. Member loyalty benefits and the chance to earn free drinks are also available to our regulars through our esipper Club

7 ARE WE THE RIGHT BUSINESS FOR YOU? WHAT TYPE OF COFFEE HOUSE SUITS YOU? PersonalityOutlook & ASPIRATION Gloria Jean s Coffees takes the process of selecting our Franchising Partners very seriously. They come from all walks of life and have various backgrounds and life experiences. It s not necessary that you have experience running a café. We can offer you comprehensive training with that. We d rather you have the right personality, outlook and aspirations. If you re wondering whether you re the right type of person to run one of our coffee houses, ask yourself: 1. Do I have good people skills? 2. Do I want to take control of my destiny? 3. Do I have a strong desire to succeed in my own business? 4. Am I prepared to have personal day-to-day involvement in my business? 5. Do I have a positive attitude? 6. Do I have strong communication skills? 7. Do I have a genuine interest in people? 8. Do I have the ability to deliver outstanding customer service? 9. Am I prepared to learn and adopt new ideas? 10. And of course do I love coffee? If YES is your answer, then come and talk with us! NEW COFFEE HOUSE The flexibility of our coffee house design means that all formats can be adapted to a broad range of locations, whether it be a kiosk, a small coffee house, a large coffee house or a drive thru format. Our Franchise Recruitment Team is ready to answer any enquires you may have. Sizes Kiosk 15m2 25m2 (30m2 is a large kiosk) Small coffee house 50m2 80m2 Large coffee house 80m2 120m2 Drive Thru 80m2-150m2 ESTABLISHED COFFEE HOUSE Our established coffee houses become available when an existing Franchise Partner offers their business for sale. One of the advantages of buying an existing business is that the business is already in operation, so there is no need for location searches, market establishment and hiring staff. Plus, it s great to know that if you decide to sell your business, interested purchasers are often on the lookout for a well-established business. Our established coffee houses are advertised for sale on the Retail Food Group website, as well as through independent business brokers and various franchising websites. COFFEE HOUSE CONVERSION If you re the owner of an existing café or food outlet, you also have the opportunity to convert your existing business to a Gloria Jean s Coffees franchise. Offering you full access to the significant benefits of being part of our franchise system. Couple this with the combined strength of a multi-brand franchisor and your existing business has a whole new opportunity for success. Please contact Retail Food Group to discuss whether your existing business would be suitable for conversion. INTERNATIONAL Gloria Jean s Coffees has close to 800 coffee houses in over 33 markets worldwide. If you re interested in opening up a coffee house with us internationally, please contact Retail Food Group for further details. 13

8 SUPPORT ALL THE WAY Merchandise Coffee Expertise, MANAGEMENT & When you join our franchise network we are committed to supporting your success, offering assistance in areas from coffee expertise to management and merchandising. Being part of a franchised system also means you have access to tried and tested operating systems, helping your coffee house grow from strength to strength. TRAINING AND SUPPORT FOR ALL NEW FRANCHISEE OWNERS INCLUDE: Coffee University! A world-class 5 week training program covering theoretical and practical aspects of coffee making, guest service and operational facets On-site practical training 24/7 online learning and communications platform CREMA to help train your team Ongoing support from a Franchise Business Manager Comprehensive brand marketing, advertising and promotions program An established operating system and appealing consumer offering DRIVING GUESTS MARKETING Brand identity has always been central to the success of Gloria Jean s Coffees. Our qualified Marketing Department have years of experience creating and implementing successful marketing campaigns to help drive guests into your coffee house and enhance the Gloria Jean s Coffees experience. They are responsible for all major national campaigns, digital and social media, promotions and point of sale materials as well as helping you with local coffee houses specific marketing. ONGOING ASSISTANCE OPERATIONS The Gloria Jean s Coffees operations team are also available to assist you. A Franchise Business Manager will assist you in areas such as: Business coaching and advice Maximising sales and delivering operations excellence Goal setting and business planning Your Franchise Business Manager can also offer support with training for you and your team to help you get the most out of your business. BUYING POWER PROCUREMENT The experienced Gloria Jean s Coffees procurement team have a proven track record of managing key supply chains within the food industry. Their focus is to deliver quality, supply chain integrity, innovation and value. FINANCIAL ASSISTANCE From time to time RFG may offer special financial accommodations to potential franchisees. Please enquire with your Franchise Recruitment Manager if there are current offers available. 15

9 MARKETING ACTIVITY Brand Identity INNOVATION Brand identity and innovation has always been central to the success of Gloria Jean s Coffees. Our qualified Marketing Department have years of experience creating and implementing successful marketing campaigns to help drive guests into your coffee house and enhance the Gloria Jean s Coffees experience. THEY ARE RESPONSIBLE FOR: Brand Marketing National Campaigns with high quality point of purchase materials Media Advertising Loyalty Marketing Public Relations Community/Local Area Marketing support Social Media Gloria Jean s Coffees Website New product innovation The team are always developing new strategies to help build our brand, boost in-house sales and promote our product range. Franchise Partners contribute a prescribed percentage of their monthly gross sales to participate in our advertising and promotions programs. Freeing you up to focus on your passion running your coffee house and looking after your guests.

10 ONLINE TRAINING CREMA LEARNING Retail Food Group (RFG) appreciates the high staff turnover faced by business owners within the food and hospitality industry. We know the costs and difficulties you face when training in technically complex areas such as coffee. And we understand the business realities of sometimes needing staff to have both technical and service skills. There is a clear relationship between the quality and nature of training within a business, and the finished product experienced by guests. So we ve worked with experienced learning and development practitioners and leading online learning providers to create a unique coffee training program that achieves results. Introducing the Gloria Jean s Coffees Online Training platform CREMA Learning CREMA Learning is Gloria Jean s Coffees Learning Management System. CREMA Learning houses all things to do with your training and development for you and your team. A proven track record in the speed and success of completing online training (compared to manual paperwork methods) Team members can access the online training 24/7, reducing in-house training time and owner costs Offers communication between Franchise Partner/s and Team Members through notices, rosters and a forum Franchise Partners can monitor their team members online training progress Team Members can progress at their own speed and refresh their skills at any time New and exciting online training is developed to keep Franchise Partner and Team Member engagement on new training and marketing campaigns There is a clear relationship between the quality and nature of training... 18

11 OUR POS SOFTWARE Our coffee houses use Aloha software running on NCR hardware. Currently, Gloria Jean s Coffees has a partnership with local POS distributor and support provider InTouch Point of Sale. Franchise Partners interface directly with InTouch for support of their point of sale system. Gloria Jean s Coffees also runs a national loyalty program - esipper, based on contactless RFID cards which interface with the point of sale system. The program is very popular with guests; roughly 30% on average of all sales are processed with a card swipe attached. As at May 2015, more than 850,000 esipper cards are in circulation within Australia. Support for the esipper loyalty program is provided by the Gloria Jean s Coffees Support Office IT team. INVESTMENT REQUIRED NEW COFFEE HOUSE The investment required depends on a range of factors including the size of the location and landlord conditions, as a general guide store fit-out, fixtures and equipment can cost between $380,000 - $600,000 (plus GST), a new franchise fee of $50,000 (plus GST) is payable together with a training fee of $12,000 (plus GST) and a project management fee (depending on the works required). However there are a range of other costs and payments for set-up including for initial stock and inventory, legal and accountants fees, insurance and bank guarantees, and you also need to provide for working capital and ongoing costs including rent, labour and utilities. ESTABLISHED COFFEE HOUSE Established coffee houses have the advantage of already being set up in a proven site with a loyal following. The selling price of an existing coffee house is set by the current Franchise Partner and like any existing business for sale, will depend on numerous factors. Other costs you will incur include accounting fees and business advice. INTERNATIONAL The price of an international franchise with Gloria Jean s Coffees depends on the market potential of the country or region. Please contact Retail Food Group for more information.

12 MORE OF YOUR QUESTIONS ANSWERED 1. Why does everyone love Gloria Jean s Coffees? Since launching our first Australian coffee house in 1996, we ve worked hard to build a positive brand synonymous with delicious coffee and warm, friendly service. We ve continued to grow in popularity with our innovative coffee and beverage range, which is evident whenever you walk into one of our coffee houses. It s our dedication to quality products, along with our energetic and passionate Franchise Partner network, that helps protect the strength of our brand and keeps our guests coming back for more. 2. What does it take to be a Franchise Partner? To be an ideal Franchise Partner, this is what we re looking for: A passion for Gloria Jean s Coffees most of our Franchise Partners started out as loyal guests before joining our brand No industry experience required although some business experience is an advantage Demonstrate an understanding of basic financial statements and accounting/bookkeeping procedures Great leadership, motivation and communication skills The ability and willingness to follow our proven operating systems and be hands-on working in the business A commitment to excellence at every level, from your personal presentation to your ability to lead your team Energy running your own coffee house requires ongoing drive and dedication, and quite a lot of physical work, to deliver an exceptional experience to your guests every time Integrity a love of great coffee and a commitment to treating your team and guests with respect and honesty is essential The financial capacity to meet our minimum financial criteria to qualify as a Franchise Partner 3. Am I required to run my coffee house? Absolutely. This isn t a hands-off investment. We truly believe the success of your coffee house is directly linked to your commitment at every level of the business operations. With an active involvement, you re able to understand every aspect of running your coffee house. We are here to support you and will work with you to help maximise your business potential. We offer the tools you need to run a successful business, and have a proven track record in providing quality operating systems to our Franchise Partners. We also expect that you work within our proven operating model. 4. What does it cost to open up a coffee house? The actual cost varies from coffee house to coffee house, and we provide more detail during the earlier stages of our franchise selection process. 5. What are the ongoing fees? 6% (2% trade mark licence fee + 4% technical assistance fee), plus 2% marketing levy (advertising fund) Based on gross sales less GST, paid by direct debit monthly 6. What is the term of the franchise agreement? This varies depending on the lease term for new franchises this is usually between 5-10 years. For existing franchises this will depend on the term of the franchise you are buying. 7. What training will I receive? We offer you a world-class Franchise Partner training program, preparing you for owning one of our coffee houses. Our Coffee University runs for 5 weeks (2 weeks in our Sydney Training Centre and 3 weeks in coffee houses in your home state). All persons with either a financial or operational interest in the franchise must complete this training. The fee of $12,000 (excluding GST) allows for two people to complete the course simultaneously. Our initial training is backed by our online learning and communications platform, CREMA and is available to Franchise Partners and team members 24/7. You can rest easy that with your initial Franchise Partner Induction Program, online training platform, team member specific training and the support you ll receive from your Franchise Business Manager, you ll be equipped with the tools you need to help maximise your coffee house success 22

13 WANT TO JOIN OUR TEAM? WHAT ARE THE STEPS TO OWNING MY COFFEE HOUSE? 1. A bit of research. Head to our website (gloriajeanscoffees.com.au) to get a feel for our brand and to read more about our franchise opportunities, including some testimonials. Take some time to visit a couple of our coffee houses, too. 2. Make an enquiry. Register your initial interest by completing our Franchise Partner Enquiries Form online. We re in touch for a chat usually within 1-2 days. Then if we re both keen to get to know each other further, we ask you to complete our Application Form. If you re interested in an existing coffee house opportunity, we can provide you with the broker s contact details. 3. Application form. Submit your form and we review your application in detail. If you meet our initial criteria, we then arrange a mutually suitable time for a first meeting. 4. Discovery meeting. This is your chance to meet the team and discover exactly what s involved in owning your own coffee house. We ll probably have a few questions on your application, and you can ask us what you want to know, too. 5. Franchise Partner chat. Next you get the chance to speak to a couple of our Franchise Partners to get their perspective on owning a coffee house. Now s also a good time to start sourcing a solicitor (we require that you have one), accountant and finance broker (we recommend that you have these). They should obviously have experience with franchising and an understanding of our industry. 6. Second meeting. Once you ve decided that this is the right opportunity for you, next is a behavioural interview. It s nothing scary; we re just interested in how your past experiences have shaped you, and how they might relate to you operating your own coffee house. And no doubt you have some more questions for us. 7. Our detailed assessment. We then undertake our detailed assessment of your application including your finance and proof of funding - we may ask you for more information or supporting documentation (e.g. if you are buying an existing coffee house we need a copy of the conditional contract of sale/purchase). We also assess your application for the particular coffee house you are considering and whether this is suitable for you and Gloria Jean s Coffees. 8. Decision time. Taking into account you application, interviews and our assessment, we now make a final decision on whether this franchise opportunity is for you and whether we go to the next step formal approval and legal documentation. 9. Issue of formal approval and legal documentation. Now it s time to provide you with a formal approval and the franchise grant documents, including our disclosure document and draft franchise agreement. This is your time to review the detail of the franchise and finalise your due diligence before you legally sing-up. You need to seek independent, professional advice at this stage. After getting this advice, you return the signed documents to us and pay the fees due. 10. Coffee University! We book you into our 5 week intensive Franchise Partner Induction Program, where you learn about our system for successfully operating a coffee house with Gloria Jean s Coffees. (Of course, you need to pass our training program before you can open a coffee house or transfer into an existing one.) 11. Final preparations. The end of the training program signals the final preparations to opening up your very own coffee house. 12. Launch day. Stock up on your sleep before the big day! Your dream coffee house is ready to roll. Our team will be there to support you during the initial stages, offering all the help you need as you start to find your feet. Generally, this 12 step application and approval process takes between 6-14 weeks. Please note that the above process varies depending on whether you are applying for a new coffee house opportunity or purchasing an existing franchise business. There are some extra steps if you are buying an existing franchise business (and the vendor Franchise Partner has to meet separate requirements for the sale to go ahead). Please also note that Gloria Jean s Coffees requires that all Franchise Partners be supported by (at least) 2 persons who act as guarantors. These guarantors also need to be assessed and approved as suitable for your application to be approved

14 WHAT OUR FRANCHISEES HAVE TO SAY We love working and being part of the Gloria Jean s Coffees family. The Gloria Jean s brand, vision and product really connected with us, and we love the way we get to connect and share with our guests. We ve been part of the Gloria Jean s family for over 12 years now, and hope to enjoy many more. Adele and Mona- Springvale Coffee House Victoria. We love Gloria Jean s Coffees because it s a great brand and a business that supports our family life. We get to spend time with the kids in their after school activities and when they re not playing sport they re working in the business with us learning new life skills John and Christine Katsakis Southland Victoria

15 A MESSAGE FROM OUR CEO WHY BECOME A FRANCHISE PARTNER? The decision to invest in a franchise can be the culmination of many things. From a dream to run your own business, a desire to control your own financial destiny or, a goal to overcome a new life challenge. There are many reasons why our franchise partners have chosen to go into business with us. At Gloria Jean s Coffees, we realise that a franchise isn t just a financial investment; it s a lifestyle and emotional investment too. With a franchise, you are in business for yourself, but not by yourself - our network of dedicated team members are here to support you throughout the life of your business. We re looking for franchise partners who are honest, positive and self-motivated team players with strong communication skills and a drive to succeed. If this sounds like you, we encourage you to seriously consider beginning your franchising journey with Gloria Jean s Coffees. Your success is our success, and as such, we are here to assist you in the achievement of your goals and aspirations for your business. A MESSAGE FROM OUR CEO On behalf of Retail Food Group, I would like to thank you for your interest in the Gloria Jean s Coffees franchise system. RFG s Brand Systems are market leaders, selling their quality products to millions of customers every year. We attribute this to the ongoing loyalty and dedication of our franchisees, who are passionate about quality food products, exceptional customer service and supporting their local communities. Through our proven business philosophy of strength in brands, RFG nurtures this passion by offering franchisees expert training in a world class training facility, ongoing support and development opportunities including barista and coffee excellence training for team members, strong supply chain relationships and access to superior buying power. A franchise with RFG provides not only a highly respected brand name, but the stability, expertise and support of a fully integrated multi-brand global franchisor. With more than 25 years of proven experience in retail food franchising and a strong track record of success, there is no better time than now to become a member of the RFG family. Yours sincerely Andre Nell Chief Executive Officer Franchise Retail Food Group Limited With a franchise, you are in business for yourself, but not by yourself 28

16 HOW TO GET IN TOUCH If you d like to join our franchise family or chat about a potential opportunity, we d love to hear from you. Call Kellie Cranch Franchise Recruitment Executive Gloria Jeans

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