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Dec, 18 2014

Gloria Jean\'s Coffee ends franchise with Landmark group

Sources familiar with the news told DNA that the coffee chain has already ended the deal and that a number of cafes have been shut down while some of them have been converted to a different brand.

Gloria Jean’s Coffe, the Australian coffee chain which entered India in 2008 in a master franchisee with Landmark Group owned Citymax has ended its franchisee with the group, as per a report in DNA.

Sources familiar with the news told DNA that the coffee chain has already ended the deal and that a number of cafes have been shut down while some of them have been converted to a different brand.

However, a Citymax executive confirmed the development saying, "The Gloria Jean's franchise has been discontinued and existing outlets are now being operated under the Krispy Kreme Doughnuts brand."

Gloria Jean’s Coffee entered India with the plan to scale up the chain to over 50 outlets gradually, Citymax was unable to expand beyond 27 outlets across Mumbai, Bangalore, New Delhi, Gurgaon, Chennai, Hyderabad, Ahmedabad and Pune. In fact, Citymax, finding it difficult to sustain the coffee cafe operations, shut down five Gloria Jean's Coffees outlets bringing the total number to 22 cafes.

Meanwhile, eleven outlets in Bangalore, one in Chennai and five in Mumbai have been converted to Krispy Kreme Doughnuts with almost similar (food and beverage) offerings excluding sandwiches," said the Citymax executive.

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