Ciao CIBO as a coffee coup sees them become Gloria Jean’s

Adelaide’s 22 CIBO Espresso outlets have been bought out by a Queensland coffee-and-cake giant and ready to be remade into another popular cafe chain.

Adelaide’s CIBO Espresso cafes will transition to become Gloria Jean’s outlets after a coffee coup.

Queensland’s Retail Food Group (RFG) whose stable of coffee-and-cake brands include Donut King has grabbed the business for $2.7m with ambitious expansion plans.

CIBO Espresso is a boutique coffee franchise founded in Adelaide in 2000 by Roberto Cardone, Salvatore Pepe, Angelo Inglese and Claudio Ferraro who were “longing for the lost pleasures of Italy.”

CIBO Espresso cafe chain then directors Claudio Ferraro, Salvatore Pepe, Angelo Inglese and Roberto Cardone with staff member Sally Clark in 2006.

CIBO Espresso, Cioccolata Italiano – melted chocolate drink topped with pure cream

Success with coffee and Italian food at their first site on Rundle Street saw rapid growth to 22 retail locations — 18 franchises and four company owned sites.

All will go to RFG under the deal with immediate access.

RFG chief executive Matt Marshall said: “This acquisition aligns perfectly with our strategic goal to grow our core brands in the Café, Coffee, Bakery (CCB) channel and is an important step to deliver Gloria Jean’s bold ambition to become the most visited beverage destination in the world.”

An announcement to the ASX says RFG acquired 100 per cent of the share capital of CIBO Espresso Holdings including intellectual property from Retail Zoo which bought CIBO in 2012 for an undisclosed price.

“We are acquiring CIBO Espresso from Retail Zoo to accelerate our growth in South Australia and gain immediate access to 22 retail locations,” an RFG statement says.

“We expect to invest $1.3 million into the South Australian network to provide compelling incentives (including capital commitments) for CIBO Espresso Franchise Partners to accelerate their transition to Gloria Jean’s.”

These incentives to sweeten the deal include Gloria Jean’s products such as its cold beverage Chillers and food offerings such as Acai, and “a larger core brand with a global presence, and materially larger marketing fund.”

“We will work with CIBO Espresso franchise partners to present a compelling case and capital investment to convert into Gloria Jean’s,” the RFG statement says.

Benefits of the conversion include a larger marketing fund upon conversion as well as shared systems such as IT, finance and leasing.

RFG notes the CIBO outlets are in “landmark sites” which aim to provide customers “with an authentic Italian coffee bar experience, specialising in espresso coffee, gelati and complementary foods.”

CIBO Espresso’s network comprises four company outlets at West Lakes, Henley Square, Hyde Park, Harbour Town, and 18 franchise locations across Adelaide.

RFG is a global food and beverage company headquartered in Queensland. It is Australia’s largest multi-brand retail food franchise manager and owns brands including Gloria Jean’s, Donut King, Brumby’s Bakery, Beefy’s Pies and Crust Gourmet Pizza.