Australian franchise giant Retail Food Group (RFG) is ramping up its newly acquired Gloria Jean's coffee chain in China through a new joint venture.
RFG is partnering with Tian Jin Sen Yong Tai, a subsidiary of restaurant group GouBuLi, which already operates two Gloria Jean's stores in China.
Under the agreement, RFG will own a 20 per cent stake in the JV and Tian Jin Sen Yong Tai will own the remaining 80 per cent.
RFG acquired the Gloria Jean's coffee chain from owner Nabi Saleh for $163.5 million in October last year. Gloria Jean's has 800 outlets, half of which are in Australia and half of which are spread across more than 40 countries.
“The joint venture represents the culmination of a twelve month engagement between the Gloria Jean’s Coffees Brand System, Tian Jin Sen Yong Tai Co Limited and their respective associates, and affords RFG immediate revenue in terms of the initial licence fee paid, together with scope for future earnings by way of profit share and supply-side opportunity”, said RFG CEO Tony Alford.
“Importantly, the joint venture unites RFG with a substantial and motivated local partner, well able to apply sufficient resources, retailing expertise and resolve to ensure the success of the enterprise,” he said.
In addition to owning numerous food chains, RFG is a wholesale coffee roaster, and in November, the company entered into in an agreement to acquire Di Bella Coffee.
