RETAIL FOOD GROUP Brewing Plans for U.S. Expansion | Global Franchise
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RETAIL FOOD GROUP Brewing Plans for U.S. Expansion

Case Study

RETAIL FOOD GROUP Brewing Plans for U.S. Expansion

With its sights set on further U.S. expansion, Australian Retail Food Group welcomes enquiries from master franchisees

Retail Food Group (RFG) is a global food and beverage company, with a network of more than 2,550 outlets across 12 brand systems spanning 78 licensed international territories. From humble beginnings in 1989 as the owner and manager of around 50 Donut King and bb’s Café stores, RFG is now Australia’s largest multi-brand retail food franchise owner, developer and manager.

The company is also a roaster and supplier of high-quality coffee and affiliated products, operating four coffee roasting facilities that supply Australian and international markets through a suite of wholesale coffee brands. RFG is also an emerging leader in the foodservice, dairy processing and wholesale bakery sectors. Headquartered on the Gold Coast, RFG has its sights set on expanding its international footprint, with a focus on introducing some of its well-known and much-loved food retail brands, including Donut King, Crust Gourmet Pizza, Brumby’s Bakery, Michel’s Patisserie and Pizza Capers to American shores.

RFG’s presence in America is already represented by its gourmet speciality coffee brands, Gloria Jean’s Coffees, which currently has 59 coffee houses in 21 states and It’s A Grind, which has 18-stores in California. RFG acquired Gloria Jean’s Coffees in December 2014 and since then; the company has been committed to reinvigorating the brand, to drive it forward internationally. With over 900 stores in 55 territories globally, RFG is currently investing considerable research to renovate the brand for the future.

Gloria Jean’s Coffee

Gloria Jean’s Coffees is tireless in its pursuit to serve the highest quality coffee, while making each and every guest feel like they are returning home when they step into any of the brand’s coffee houses. As a coffee specialist from bean to cup, Gloria Jean’s Coffees make quality handcrafted drinks, ranging from Cappuccino and Caffe Latte to indulgent options like Caramel Latte and White Chocolate Mocha, as well as exclusive freshly-brewed tea offerings, refreshing iced coffees and fruit chillers.

There are over 30 varieties of single origin, blends, flavoured infusions and decaffeinated whole bean coffees available through Gloria Jean’s Coffees, with master franchise partners able to build a menu to suit the tastes of their region. After opening its first coffee house in Australia in 1996, the Gloria Jean’s Coffees business model was perfected for international growth and the footprint has grown to over 900 coffee houses worldwide.

Gloria Jean’s Coffees Vice President USA, Brian Balconi, said the impact of RFG’s expertise in terms of retail, franchising and coffee is instrumental to the brand’s strength. “The backing provided by RFG is world class,” he said. “They have been invaluable in creating a holistic service and support package for new franchise partners joining the Gloria Jean’s Coffees system, including proven methods in training, marketing, procurement and menu innovation, all of which are centered on supporting them in their operations.”

As part of the RFG family, Gloria Jean’s Coffees has benefited from the company’s proven business models and highly-skilled support systems that have been perfected over 25 years of operation to ensure the success of its franchise networks. RFG’s international expansion model is based on recruiting master franchise partners who purchase a license to develop a certain brand system in a defined territory. This model provides the company and local partners with the opportunity to forge sustainable partnerships to successfully develop RFG’s brand systems internationally.


International licensees

RFG Chief Franchise Officer Mike Gilbert said RFG considers its international licensees more like business partners. “Our international model is collaborative and supportive, and we work with our partners on a broad range of operational matters, including development schedules and growth strategies, as well as marketing and training,” he said.

The company’s long-term philosophy of ‘strength in brands’ is its point of difference – franchise partners enjoy the benefits of working with Australia’s largest multi-food franchisor every day, dealing with expert management teams, enjoying supply benefits from increased scale and gaining access to best-in-class initiatives. They also benefit from access to a wealth of experience in retail food franchising, proven systems and a global training and support framework, while RFG gains a partner with the strategic, operational and financial capabilities to expand each brand system within their territory.

RFG’s burgeoning international operations have become a key ingredient of the company’s success and despite encouraging traction to date; the global expansion of the group’s brand systems remains a significant untapped opportunity which RFG is vigorously pursuing. “Our brand systems are leaders in the food retail space in Australia, and they’re ripe for international growth,” Mr Gilbert said. “While we’re always looking for exciting, uncharted new territories, we have already identified the US market as a fantastic fit for us. We’re currently brewing plans to expand both our existing Gloria Jean’s Coffees presence there, and bring some of our other brands to the US for the first time.”

One of those brands is Crust Gourmet Pizza Bar, a gourmet pizza brand that is well known for making pizzas with unique ingredients and never-seen-before flavour combinations. The brand prides itself on innovation, both in the kitchen and through the way it caters to customers’ diverse tastes and needs.

Simply Better range

A great example of this is the Simply Better range, which is aimed at health-conscious consumers, and profiles fresh innovative ingredients, house-cooked meats and healthier bases. Crust don’t measure ingredients using cups or spoons, and prefer a more organic approach, measuring by hand and instinct. Locally sourced, fresh produce is used wherever possible, with stores receiving almost daily deliveries of fruit and vegetables from local suppliers

Crust General Manager Renee North said the brand isn’t new to innovation off the menu either. “Last year we announced a partnership with Australian electronic duo, Peking Duck, the first in a series of long-term partnerships with cultural vanguards for the brand.”

The partnership was promoted through interactive audio posters using technology out of the UK that has never been seen before on Australian shores. “The outdoor digital and traditional posters encouraged users to touch, press and essentially play the poster, triggering the sounds and allowing them to create their own track – complete with a scratch disc for a truly individualised touch,” said Renee. “Crust is an exciting brand, with even more exciting innovations planned for 2017 and beyond. We’re looking forward to taking our market-leading concepts internationally and helping RFG grow its global footprint.”

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