Star Bucks vs Gloria Jeans

“STARBUCKS: FAILURE ABROAD”

1. Gloria Jean’s Coffees is an Australian owned global company and coffeehouse chain that has opened over 900 stores and signed 36 Master Franchise agreements across 35 countries worldwide. Gloria Jean’s Coffee store was founded in 1979 by Ed and Gloria Jean kvetko in Chicago, USA. Gloria and her husband Ed saw the opportunity to offer specialty gourmet coffees in a warm and friendly atmosphere. The business became successful and Gloria Jean’s Coffees started to appear around the USA. In 1993 Gloria and Ed sold the franchise for $40m to Nabi Saleh and his business partner Peter Irvine in Australia.

Since first entering the Australian market in 1996, the company has opened for the 466 stores, operating in every state and territory of the country. Gloria Jean’s is now Australia’s largest and most recognized coffee retailer serving and estimated seven million guests each month.

In 2006 the number of Gloria Jean’s coffee stores grew by 22% in Australia and an outstanding rate of 82% internationally. Gloria jean’s is one of the top 30 fastest growing franchises in Australia and is also listed as one of Australia’s top 1,000 companies and top 500 private companies.

Gloria Jean’s Coffees uses a master franchise model market entry. What happens is the firm selects a master franchise partner for a nation and for large nations, such as China, they break it down into regions with several master franchise partners.

The business sees this franchise as a partnership and will take a financial position if required but majority of the time the master franchise partner for the country purchases the rights for their nation and then begins to develop stores following the Gloria Jean’s Coffees franchise model. In some countries such as Australia some partners have chosen to have a company owned store model only, separate from a franchise model. Not all stores are franchised as a few are owned by the company.

The franchise partners need to have...