Australia’s Retail Food Group acquires CIBO Espresso for AU$2.7m

CIBO Espresso generates annual sales of AU$20m ($13.2m) from its 22 coffee shops | Photo credit: CIBO Espresso/Facebook

Australian franchise group Retail Food Group (RFG) has acquired Adelaide-based coffee chain CIBO Espresso from Retail Zoo for AU$2.7m ($1.7m). 
 

The deal, which includes CIBO Espresso’s 22 outlets in South Australia and intellectual property, is expected to be finalised by July 2025. Queensland-based RFG plans to invest AU$1.3m ($857,000) to rebrand the outlets into Gloria Jean’s sites – a move which would see the CIBO Espresso brand discontinued. 

“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,” said Matt Marshall, CEO, RFG. 

Founded in 2000 by the founders of North Adelaide-based Italian restaurant, CIBO Ristorante, CIBO Espresso generates annual sales of AU$20m ($13.2m) from its 22 coffee shops. 
 

Gloria Jean’s operated 138 stores across Australia as of August 2024. The planned conversion of the CIBO Espresso franchise network would significantly boost Gloria Jean’s presence and revenues in the state of South Australia, where it currently operates six coffee shops generating AU$5m ($3.3m) in annual sales. 

Gloria Jean’s is the flagship brand in RFG’s CCB segment – which contributed 71% of the group’s total AU$504m ($332m) sales in the 12 months ended 28 June 2024. Alongside Gloria Jean’s, the segment also comprises the Donut King and Brumby’s Bakery brands, which operates 204 and 78 stores across Australia respectively. 

Founded in Illinois, US, in 1979, the first Gloria Jean’s opened in Australia in 1996. RFG acquired the coffee chain for AU$163.5m ($105.3m) in 2014. In addition to its Australia outlets, RFG also operates over 450 Gloria Jean’s stores across 30 international markets. 

In August 2024, RFG announced plans to rebrand as Savora Brands Limited. The proposed name change will be put before the group’s AGM at the end of November 2024.