Gloria Jean’s India deal ends abruptly
The Australian coffee chain, which was bought by Retail Food Group in October , launched in India in the first quarter of 2008 with franchisee, Citymax, a division of Dubai-based, Landmark Group.
The plan was to build a network of 50 stores, but Citymax stopped at 27, before scaling back to 22.
The coffee cafe sector in India is growing fast, but is fiercely competitive with local and international brands fighting to premises and market share. Cafe Coffee Day, a local operator, and Starbucks, a joint venture with Tata Group, are dominating the local market.
According to reports, 17 Gloria Jean’s cafes have been converted into Krispy Kreme outlets, another franchise Citymax holds for the nation.
The stores are located in New Delhi, Bangalore, Mumbai, Chennai, Pune, Gurgaon, Hyderabad, and Ahmedabad.
Citymax reportedly attempted to sell its stake in the Gloria Jean’s business, but with no apparent buyer interest, opted to close the operation instead.
It is understood Citymax is now shifting its focused on its Lifestyle department stores, Max Fashion, and home centre furniture chains.
Gloria Jean’s has 358 stores in Australia, 87 in the United States, and franchises in 40 other countries.
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