Australia Coffee chain Gloria Jeans which started operations in India 4 years ago has managed to breakeven. Gloria Jeans Coffee in India has a Master Franchise Citymax Hospitality.
GJC in India is growing at 10% YoY slightly below the Market Average. The company plans to add 30-40 outlets in India every year on a Franchisee business model. It hopes to reach 250 stores within the next 4 years.
Mr. Vishal Sawhney, President of GJC said,
Cafe chains do not have high margins and to get the right rentals at malls and high streets will always be a challenge. While there is demand for cafes, there is not enough supply of properties sue to which most of the players are suffering.
The business model of GJC is similar to that of Starbucks – Front end cafe and a retail business. GJC is planning to enhance the food offerings with hand crafted snacks to suit the demand of consumers at its relatively large outlets.
Overall there are 2,000 coffee outlets by Cafe Coffee Day, GJC, Costa Coffee, Barista, DiBella, etc and the market is expecting the store count to reach 3,000 in the next 3 to 4 years.