Retail Food Group (RFG) has stirred up the South Australian coffee scene with its latest caffeinated conquest. The boutique coffee chain, Cibo Espresso, has been plucked from the Retail Zoo family for a cool $2.7 million, as RFG takes a sip of the local market.
In a move that promises a jolt of growth, RFG plans to infuse new energy into the coffee landscape by rebranding Cibo Espresso stores to the well-established Gloria Jean’s. With Gloria Jean’s already boasting six cafes in South Australia and churning out approximately $5 million in network sales, the acquisition sets the stage for an espresso-fueled expansion.
Cibo Espresso, with its 22 stores, predominantly nestled in Adelaide like beans in a grinder, has brewed up a revenue of about $20 million. This acquisition dance will see three multi-unit franchisees and four company-owned stores frothing with excitement as they become part of the evolving Gloria Jean’s network.
To sweeten the deal, RFG plans to invest $1.3 million to help Cibo franchisees smoothly transition to the Gloria Jean’s brand. New menu offerings, including refreshing cold beverages and trendy acai options, are on the cards to entice caffeine connoisseurs and drive network sales growth.
This strategic move aims to blend the best of both worlds, enhancing synergies across IT, finance, leasing, and, of course, the all-important coffee supply chain within the expanded network. RFG is betting big on growing its core brands in the Café, Coffee, Bakery channel and catapulting Gloria Jean’s to the summit of the global beverage world.
With the financial beans now spilled, RFG plans to finance the acquisition using its cash reserves, with the deal expected to be sealed in the mid-FY25. Post-synergies, RFG forecasts an EBITDA buzz between $1.2 million and $1.8 million for FY26, showcasing the potential for a freshly brewed success story in the making. The big question now is, will South Australians savor the new blend or stick to their tried and true caffeine fixes? Only time, and perhaps a well-brewed cup of coffee, will tell.
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Retail Food Group Acquires Cibo Espresso for $2.7 Million, Plans a Gloria Jean’s Takeover
Tuesday 5th November, 2024
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RFG Stirs Up South Australian Coffee Scene with Multi-Million Dollar Cibo Espresso Acquisition
- RFG acquired the boutique coffee chain Cibo Espresso from Retail Zoo for $2.7 million, aiming for a growth jolt by rebranding the stores as Gloria Jean's.
- Gloria Jean's, with six cafes in South Australia generating $5 million in sales, is set to expand further with the addition of Cibo Espresso's 22 stores and $20 million in revenue.
- RFG plans to invest $1.3 million to facilitate the transition of Cibo franchisees to Gloria Jean's, introducing new menu offerings and aiming to boost network sales growth through strategic synergies.
Key Facts:
| Acquisition Price | Cibo Espresso acquired by RFG for $2.7 million |
|---|---|
| Existing Gloria Jean's Cafes | Gloria Jean's already has six cafes in South Australia generating $5 million in network sales |
| Cibo Espresso Revenue | Cibo Espresso, with 22 stores mainly in Adelaide, has brewed up a revenue of about $20 million |
| Investment in Transition | RFG plans to invest $1.3 million to help Cibo franchisees transition to the Gloria Jean's brand |
| Menu Expansion | New menu offerings like cold beverages and acai options to drive network sales growth |
| Finance Strategy | RFG plans to finance the acquisition using cash reserves with a deal expected to be sealed in mid-FY25 |
| Forecasted EBITDA | RFG forecasts an EBITDA buzz between $1.2 million and $1.8 million for FY26 post-synergies |
Disclaimer:
If any facts in our articles are incorrect or you would like an article removed please email us at news@gorilladash.com.
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