CIBO co-founder Roberto Cardone raises concerns on future of SA’s 22 outlets under Gloria Jeans sale

Whipped cream and syrup with your coffee might work in Queensland, but CIBO co-founder Roberto Cardone questions whether it will work in SA.

CIBO Espresso co-founder Roberto Cardone is doubtful Gloria Jeans outlets will work in South Australia, raising serious concerns for the future of the state’s 22 CIBO outlets.

Mr Cardone aired concerns after the Retail Food Group acquired the coffee franchise from Retail Zoo for $2.7m, to grow its Gloria Jeans six-store footprint in SA.

“Gloria Jeans has never had a strong footprint in SA except for in shopping centres, because of CIBO Espresso,” Mr Cardone said.

“The CIBO brand might not be as strong as when we had it, but the coffee has always been the go-to for South Australians.”

CIBO Espresso was founded in Adelaide by Mr Cardone, Salvatore Pepe, Angelo Inglese and Claudio Ferraro, and specialised in espresso coffee, gelati and foods.

CIBO Espresso cafe franchise directors Salvatore Pepe, Roberto Cardone, Claudio Ferraro, and Angelo Inglese.

The brand’s success – selling more than one million cups of coffee a year – saw it sought by another global competitor in 2010, before being sold in 2012.

“Starbucks approached us in early 2010 to buy the business, but they then realised how hard the market is because it’s very parochial,” Mr Cardone said.

“I feel sorry for Gloria Jeans because they have a serious challenge coming here and I don’t think they’ve thought about it.”

Mr Cardone said while the global Gloria Jeans brand was successful in Queensland, he reflected on his own experience of taking the SA brand interstate.

“We bought a store in the mall in Brisbane and rebadged it CIBO Espresso and I remember there being all these syrups and I said to my partner ‘this is ridiculous, how awful putting this in your coffee’,” he said.

Roberto Cardone, a co-founder CIBO Espresso. Picture by Matt Turner.

“That store went from a turnover of $14,000 a week to $7000 overnight because we didn’t do what Queensland wanted.”

He feared once CIBO outlets were rebadged as Gloria Jeans “jobs will be lost when turnovers go down”

“They’re not going to go to Gloria Jeans – it’s a different coffee experience,” Mr Cardone said.

“Gloria Jeans is making coffee drinks – they’re creamy, sweet and aimed at younger crowds.

“We just feel bad for the franchisees that will be forced to changeover.”

Under the deal, 18 franchisees and four company owned sites have been sold to the Gold Coast-based group.

Retail Food Group chief executive Matt Marshall told the ASX $1.3m would be invested into the network to help franchisees transition to Gloria Jeans.

Gloria Jeans first opened in 1979 in Chicago, Illinois, and is now in 33 countries.

Australia’s first store opened in Sydney, in 1996.

A Retail Food Group spokesperson acknowledged CIBO’s history within Adelaide’s food market and the passion franchise partners and the community hold for the brand.

“It is part of the reason why this acquisition was appealing to Retail Food Group and we are committed to working collaboratively with all franchise partners to make this transition a positive one, for their businesses, their team members and of course their customers,” the spokesperson said.

“More than just a Queensland business, Gloria Jean’s is a national and global brand with strong brand recognition and a reputation for excellence.

“We are committed to working with CIBO Espresso franchise partners to present a compelling case for conversion, and believe that transitioning to the Gloria Jean’s brand will provide exciting opportunities.”

The spokesperson mentioned franchise partners would have access to capital incentives for rebranding, equipment upgrades and access to a larker marketing fund.