Glenelg CIBO Espresso owner Tony Beatrice fears for SA jobs and suppliers after the brand’s sale to the Retail Food Group
Glenelg’s CIBO Espresso owner fears if the brand is rebadged, SA produce and jobs will go under the transition.
SA News
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For 20 years, Tony Beatrice has been a familiar face as the proud CIBO Espresso owner in Glenelg but he now holds fears for the iconic South Australian brand.
Mr Beatrice only recently signed another seven-year franchisee agreement and undertook $150,000 of refurbishments to learn this week CIBO has been sold.
His store is one of 22 to be purchased by the Gold Coast-based Retail Food Group (RFG) and announced on the ASX, following a $2.7m sale by Retail Zoo.
RFG flagged plans for the franchise, founded in Adelaide in 2000 by Roberto Cardone, Salvatore Pepe, Angelo Inglese and Claudio Ferraro, to become Gloria Jean’s outlets.
“They’re taking a local SA brand and trying to downgrade it to a cheap coffee shop,” Mr Beatrice says. “It’s a really serious scenario.
“We’ve been sold in the past but they’ve never touched the brand.”
Mr Beatrice, who employs 25 people, fears for what the sale could mean for SA food, gelati and pastry suppliers and, of course, Tony D’Angelo the CIBO coffee roaster.
Gloria Jeans coffee beans are from a Castle Hill roaster in NSW.
“We need to save this iconic SA brand and save people’s jobs,” he said.
“Not give it to a brand interstate.”
He said other franchisees were unwilling to handover their stores to “have them rebadged” as they believe it will “jeopardise turnover”.
“We have 18 family-operated franchises and it’s tampering with their livelihoods,” he said.
“The news has already been really damaging without anything happening.
“Customers every day are saying something whether it’s ‘I won’t be coming here because their coffee is s***’ or ‘when can I get my last CIBO coffee’.
“It’s demoralising.”
Mr Beatrice said franchisees were meeting with the RFG chief executive and chief operating officer later this month where they hoped to get clarity on the sale.
CIBO’s founder raised similar concerns earlier this week and said while Gloria Jeans was successful in Queensland, it would struggle in the South Australian market.
An RFG spokeswoman previously said they would work collaboratively with all franchise partners “to make this transition a positive one” with the acquisition expected to be completed around Christmas.
“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,” she said.