Gloria Jean's
Encyclopedia
Gloria Jean's Coffees is an Australian owned global specialty coffee company that has opened more than 1,000 coffee houses across 39 markets worldwide, including over 460 in Australia
.
USA
which now has over 110 locations throughout the U.S.
In 1995, Nabi Saleh
and Peter Irvine,former Managing Director of advertising agency DDB Needham, visited the United States to sample the Gloria Jean's Coffees brand. Saleh and Irvine identified the opportunity for this brand in Australia, purchasing the international licensing rights from Diedrich Coffee, Inc.
Saleh and Irvine established Jireh International Pty Ltd (trading as Gloria Jeans Coffees), the company that holds the right to franchise Gloria Jean's Coffees in Australia, and purchased the rights to the Gloria Jean's Coffees brand for all other countries from Diedrich Coffee
, Inc, with the exceptions of the USA and Puerto Rico.
In late 1996, Jireh International Pty Ltd opened the first Gloria Jean's coffee house in Miranda, Sydney
, and two weeks later another in Eastgardens, also in Sydney. These coffee house were set up to test the concept in the Australian market.
In early 1998, Gloria Jean's Coffees Australia franchised its first store and within six years had opened 185 stores owned and operated by more than 100 franchisees. In 2003, a franchise opened in Darwin; this meant that the brand was now established in every Australian state and territory.
Jireh International Pty Ltd formed a North American Affiliate, Praise International North America, Inc. and as of June 14, 2009, which also operates It's A Grind Coffee House in 13 states. the North American rights were sold by Diedrich Coffee
to the American Affiliate of the Australian holding company..
John Dwight
Peter Irvine
Andrew Tyndale
is a franchising
system similar to many fast-food chains. Franchise owners have to pay franchise fees and royalties on their sales as well as operating costs.
Gloria Jean’s Coffees is a successful franchise system which has been recognised as one of the world’s best. It receives hundreds of franchise enquiries each month. Since first entering the Australian market in 1996, the company has opened more than 500 coffee houses, operating in every state and territory of the country. Gloria Jean’s Coffees is now Australia’s largest and most recognised specialty coffee retailer.
Gloria Jean’s Coffees 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 (Source: BRW 2007/2008).
.
Gloria Jean's Coffees used to sponsor what was a Hillsong-related initiative Mercy Ministries
, a pro-life
charity. Peter Irvine was executive director of Mercy Ministries until March 2008. "Gloria Jean's Coffees chose to support Mercy Ministries because there is a need in Australia for a dedicated charity that helps women with these difficult issues," said Peter Irvine, Co-Founder of Gloria Jean's Coffees. In December 2009, Irvine and other former directors were found by the Australian Competition and Consumer Commission
to have engaged in false and misleading conduct and ordered to pay $1,050 to each of the 110 young women who took part in their programs.
In mid 2009, Gloria Jean's severed their sponsorship of Mercy Ministries and Hillsong publicly severed all links to Mercy Ministries in October 2009.
There are no financial or legal ties between Gloria Jean’s Coffees and Hillsong Church. Gloria Jean’s Coffees supports the work of Hillsong by providing mobile coffee carts and coffee supplies to assist the church in its fundraising activities.
In mid-2009, Gloria Jean's Coffees International formed a charity, the GJCI "With Heart" Foundation, to support various international charities, including Compassion and Opportunity International
. Through their partnership with Compassion, Gloria Jean’s Coffees supports more than 300 children from the coffee producing regions of Brazil providing them with improved health and education opportunities.
In Australia, Gloria Jean’s Coffees is one of the longest supporters of Jeans for Genes and since 2002 has raised more than $650,000 for the cause. Gloria Jean’s Coffees also supports a range of other charities including the Salvation Army. All franchise partners are also encouraged to support other local charities or causes in their local communities.
Rainforest Alliance
Gloria Jean’s Coffees also works in partnership with not-for-profit organisation, the Rainforest Alliance, to protect ecosystems and support the people and wildlife that depend on them.
Gloria Jean’s Coffees was recognised in May 2008 with the Rainforest Alliance Corporate Green Globe Award, which recognised the company’s work in supporting global sustainability in agriculture, forestry and tourism. Gloria Jean’s Coffees was the first Australian company to receive the award.
In the 2008-2009 financial year, its signature espresso blend became Rainforest Alliance Certified and is now available throughout its international network of coffee houses. The company also previously launched a Rainforest Alliance Certified Single Origin Nicaraguan whole bean coffee that won a Silver Medal at the 2007 Sydney Royal Easter Show.
PerthNow.com.au August 17, 2010 "Gloria Jean's chairman Nabi Saleh said today he was unfazed by the New South Wales Supreme Court decision to order his company to pay more than $12.3 million for breaching an agreement with US-based coffee supplier Western Export Services.
"It is business as usual for all our coffee houses in Australia and the continued operations of the Gloria Jean's Coffees brand internationally," Mr Saleh said.
"We are pleased that yesterday the Supreme Court of NSW has ordered that Western Export Services is not entitled to enforce the judgment pending the outcome of any appeal."
Financial statements tendered in court showed Jireh’s had liabilities that were more than $3 million greater than its assets for the 2009 financial year at $26.7 million.
"The defendant is hopelessly insolvent," Western Export Services’ lawyer Jim Johnson told the court.
"There are public policy issues as to whether this company should be allowed to keep trading," Mr Johnson said.
The court also ordered the company to honour its original agreement with Western, which includes paying ongoing commissions on sales of Gloria Jean’s products worth $1.865 million in the year to June 2010, The Sydney Morning Herald reports."
In June 2011, the Court of Appeal upheld Jireh International Pty Limited’s appeal from the decision of the Supreme Court. The Court of Appeal found in favor of Jireh’s interpretation of the Letter of Agreement upon which the litigation commenced by Western Export Services, a US based supply company, was founded.
Recent media reports claimed that Jireh Group was in "financial dire straits" but were found to be without foundation. The Jireh Group continues to trade profitably, as confirmed by the most recent audited financial statements provided during the appeal process.
Gloria Jean’s Coffees recently purchased through auction an allocation of the whole coffee bean that came fifth in Brazil’s Cup of Excellence awards, the Lot#5 Norival Favaro – Sao Marcos, which will be available at all Gloria Jean’s coffee houses in Australia in August 2011.
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
.
History
Gloria Jean's Coffees was founded by Gloria Jean Kvetko in 1979 in Chicago, USA. Gloria Jean's Coffees began as a small coffee and gift shop in ChicagoChicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
USA
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
which now has over 110 locations throughout the U.S.
In 1995, Nabi Saleh
Nabi Saleh
Nabi Saleh is an Australian entrepreneur and commodities trader known as an elder of the Hillsong Church, and for starting Gloria Jean's Coffees in Australia.-Biography:...
and Peter Irvine,former Managing Director of advertising agency DDB Needham, visited the United States to sample the Gloria Jean's Coffees brand. Saleh and Irvine identified the opportunity for this brand in Australia, purchasing the international licensing rights from Diedrich Coffee, Inc.
Saleh and Irvine established Jireh International Pty Ltd (trading as Gloria Jeans Coffees), the company that holds the right to franchise Gloria Jean's Coffees in Australia, and purchased the rights to the Gloria Jean's Coffees brand for all other countries from Diedrich Coffee
Diedrich Coffee
Diedrich Coffee is a coffee company based in Irvine, CA. Its first coffee house in Orange County, CA was opened in 1983. It owns the American mall-based stores for Gloria Jean's Coffees...
, Inc, with the exceptions of the USA and Puerto Rico.
In late 1996, Jireh International Pty Ltd opened the first Gloria Jean's coffee house in Miranda, Sydney
Sydney
Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...
, and two weeks later another in Eastgardens, also in Sydney. These coffee house were set up to test the concept in the Australian market.
In early 1998, Gloria Jean's Coffees Australia franchised its first store and within six years had opened 185 stores owned and operated by more than 100 franchisees. In 2003, a franchise opened in Darwin; this meant that the brand was now established in every Australian state and territory.
Jireh International Pty Ltd formed a North American Affiliate, Praise International North America, Inc. and as of June 14, 2009, which also operates It's A Grind Coffee House in 13 states. the North American rights were sold by Diedrich Coffee
Diedrich Coffee
Diedrich Coffee is a coffee company based in Irvine, CA. Its first coffee house in Orange County, CA was opened in 1983. It owns the American mall-based stores for Gloria Jean's Coffees...
to the American Affiliate of the Australian holding company..
Australia Board Members
Nabi Saleh – ChairmanJohn Dwight
Peter Irvine
Andrew Tyndale
Corporate overview
The Gloria Jean's Coffees business modelBusiness model
A business model describes the rationale of how an organization creates, delivers, and captures value...
is a franchising
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
system similar to many fast-food chains. Franchise owners have to pay franchise fees and royalties on their sales as well as operating costs.
Gloria Jean’s Coffees is a successful franchise system which has been recognised as one of the world’s best. It receives hundreds of franchise enquiries each month. Since first entering the Australian market in 1996, the company has opened more than 500 coffee houses, operating in every state and territory of the country. Gloria Jean’s Coffees is now Australia’s largest and most recognised specialty coffee retailer.
Gloria Jean’s Coffees 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 (Source: BRW 2007/2008).
Charitable Activities
Nabi Saleh and Peter Irvine are prominent, active members of Hillsong ChurchHillsong Church
Hillsong Church is a Pentecostal megachurch affiliated with Australian Christian Churches and located in Sydney, Australia. The church's senior pastors, Brian and Bobbie Houston, began the church in 1983 as the Hills Christian Life Centre in Baulkham Hills...
.
Gloria Jean's Coffees used to sponsor what was a Hillsong-related initiative Mercy Ministries
Mercy Ministries
Mercy Ministries is an international, Evangelical, charismatic, Christian, charitable organization that offers a long-term residential program for young women aged 13–28 who struggle with various "life controlling" issues...
, a pro-life
Pro-life
Opposition to the legalization of abortion is centered around the pro-life, or anti-abortion, movement, a social and political movement opposing elective abortion on moral grounds and supporting its legal prohibition or restriction...
charity. Peter Irvine was executive director of Mercy Ministries until March 2008. "Gloria Jean's Coffees chose to support Mercy Ministries because there is a need in Australia for a dedicated charity that helps women with these difficult issues," said Peter Irvine, Co-Founder of Gloria Jean's Coffees. In December 2009, Irvine and other former directors were found by the Australian Competition and Consumer Commission
Australian Competition and Consumer Commission
The Australian Competition and Consumer Commission is an independent authority of the Australia government. It was established in 1995 with the amalgamation of the Australian Trade Practices Commission and the Prices Surveillance Authority to administer the Trade Practices Act 1974...
to have engaged in false and misleading conduct and ordered to pay $1,050 to each of the 110 young women who took part in their programs.
In mid 2009, Gloria Jean's severed their sponsorship of Mercy Ministries and Hillsong publicly severed all links to Mercy Ministries in October 2009.
There are no financial or legal ties between Gloria Jean’s Coffees and Hillsong Church. Gloria Jean’s Coffees supports the work of Hillsong by providing mobile coffee carts and coffee supplies to assist the church in its fundraising activities.
In mid-2009, Gloria Jean's Coffees International formed a charity, the GJCI "With Heart" Foundation, to support various international charities, including Compassion and Opportunity International
Opportunity International
Opportunity International is an organization that provides small business loans, savings, insurance and training to more than two million people working their way out of poverty in the developing world...
. Through their partnership with Compassion, Gloria Jean’s Coffees supports more than 300 children from the coffee producing regions of Brazil providing them with improved health and education opportunities.
In Australia, Gloria Jean’s Coffees is one of the longest supporters of Jeans for Genes and since 2002 has raised more than $650,000 for the cause. Gloria Jean’s Coffees also supports a range of other charities including the Salvation Army. All franchise partners are also encouraged to support other local charities or causes in their local communities.
Rainforest Alliance
Rainforest Alliance
The Rainforest Alliance is a non-governmental organization with the published aims of working to conserve biodiversity and ensure sustainable livelihoods by transforming land-use practices, business practices and consumer behavior. It is based in New York City, and has offices throughout the...
Gloria Jean’s Coffees also works in partnership with not-for-profit organisation, the Rainforest Alliance, to protect ecosystems and support the people and wildlife that depend on them.
Gloria Jean’s Coffees was recognised in May 2008 with the Rainforest Alliance Corporate Green Globe Award, which recognised the company’s work in supporting global sustainability in agriculture, forestry and tourism. Gloria Jean’s Coffees was the first Australian company to receive the award.
In the 2008-2009 financial year, its signature espresso blend became Rainforest Alliance Certified and is now available throughout its international network of coffee houses. The company also previously launched a Rainforest Alliance Certified Single Origin Nicaraguan whole bean coffee that won a Silver Medal at the 2007 Sydney Royal Easter Show.
Criticism
Gloria Jean's has recently been under fire in the media for the sugar and fat content of some of their products. Analysis of a regular 'Gloria Jeans Mocha Chiller Coco Loco' revealed it contained 95.5 g of sugar, which is 106 percent of an adult's recommended daily intake. They have also been criticized for failing to provide nutritional information to their customers.Regulatory and Legal Troubles
In April 2010, Gloria Jean's parent company, Jireh International, was accused of breaking a joint venture agreement with a small US-based coffee supplier, Western Export Services. Western is suing Jireh for $56 million in unpaid commissions and damages. Jireh has launched a cross-claim, saying the 1996 agreement was invalid.PerthNow.com.au August 17, 2010 "Gloria Jean's chairman Nabi Saleh said today he was unfazed by the New South Wales Supreme Court decision to order his company to pay more than $12.3 million for breaching an agreement with US-based coffee supplier Western Export Services.
"It is business as usual for all our coffee houses in Australia and the continued operations of the Gloria Jean's Coffees brand internationally," Mr Saleh said.
"We are pleased that yesterday the Supreme Court of NSW has ordered that Western Export Services is not entitled to enforce the judgment pending the outcome of any appeal."
Financial statements tendered in court showed Jireh’s had liabilities that were more than $3 million greater than its assets for the 2009 financial year at $26.7 million.
"The defendant is hopelessly insolvent," Western Export Services’ lawyer Jim Johnson told the court.
"There are public policy issues as to whether this company should be allowed to keep trading," Mr Johnson said.
The court also ordered the company to honour its original agreement with Western, which includes paying ongoing commissions on sales of Gloria Jean’s products worth $1.865 million in the year to June 2010, The Sydney Morning Herald reports."
In June 2011, the Court of Appeal upheld Jireh International Pty Limited’s appeal from the decision of the Supreme Court. The Court of Appeal found in favor of Jireh’s interpretation of the Letter of Agreement upon which the litigation commenced by Western Export Services, a US based supply company, was founded.
Recent media reports claimed that Jireh Group was in "financial dire straits" but were found to be without foundation. The Jireh Group continues to trade profitably, as confirmed by the most recent audited financial statements provided during the appeal process.
Products
Coffee houses serve and sell a range of handcrafted espresso coffee drinks, signature cold drinks, blended and estate whole bean coffees and speciality teas along with pastries and coffee accessories.Gloria Jean’s Coffees recently purchased through auction an allocation of the whole coffee bean that came fifth in Brazil’s Cup of Excellence awards, the Lot#5 Norival Favaro – Sao Marcos, which will be available at all Gloria Jean’s coffee houses in Australia in August 2011.
Awards
- In 2005, Gloria Jean's Coffees was awarded 2005 Australian Franchisor of the Year in the PricewaterhouseCoopers Excellence in Franchising Awards.
- In 2006, Gloria Jean's Coffees was awarded the Australian 2006 Franchise Export Award of the Year in the PricewaterhouseCoopers Excellence in Franchising Awards.
- In 2007, they were awarded Food Franchisor of the Year 2007 in the PricewaterhouseCoopers Excellence in Franchising Awards. They also won the Western Sydney Exporter Award at the 2007 Premier’s NSW Export Awards.
- In 2007 and again in 2009, Gloria Jean’s Coffees was awarded Western Sydney Exporter Award 2009 in the Premier’s NSW Export Awards.
- In 2009, Gloria Jean’s Coffees was awarded International Franchisor of the Year 2009 in the MYOB Excellence in Franchising Awards
- In 2010, Gloria Jean's Coffees took home a double victory at the National Franchise Council Awards 2010 receving the Excellence in Marketing Award – Winner and the International Franchising Award – Merit award.
- In 2010, Gloria Jean’s Coffees was awarded Retail Leadership Award 2010 in the International Asia Retail Congress
- In 2011, Gloria Jean’s Coffees was recognised among Australia’s most progressive organisations, winning the 2011 Australian Business Awards for Marketing Excellence.
- In 2011, Gloria Jean’s Coffees was also awarded the Community Contribution 2011 in the Australian Business Awards.