competing with Gloria Jeans

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• merlocookie

  July 2007

  I say go head to head.  Gloria Jeans predominant sales come from their Iced Beverages and alike.  If you can offer an excellent quality of espresso coffee ( and can open before GJ's ) than you should corner that market. Good Luck, Jesse.

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• GrindOnDemand

  July 2007

  Thanks Jesse.  Yeah, my gut feel is to bite the bullet & go ahead.  I'm in no way daunted by the appalling standard of sludge masquerading as coffee that they churn out.  It's just infuriatingly intriguing why they're so damn popular?????  Although I did hear that GJs at West End is struggling quite a bit - why?  'Cause there's a whole strip of quality competitors up Boundary Street (Gunshop, Urban Grind etc), with discerning clientele.  HAH! Any other opinions out there on the forum??? Cheers, Tony

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• askthecoffeeguy

  July 2007

  Its been well documented that when starbucks or gloria jeans opens in an area - coffee sales escalate in that area Also, if you can get in their first, customer loyalty is a pretty amazing thing, then you have a chance to establish demand and build up a healthy cliental, which should fingers crossed stay loyal even if something else opens nearby A recent survey of coffee customer loyalty habits suggest that 80 per cent of the reason that patrons frequent a certain establishment is just that: habit If you can be competitive in a competitive market place, offer a better product and service at a competitive price, and present your store in a marketable and attractive way, then you have every reason to believe in your success Just remember that a lot of it comes down to self belief If you believe that you have what it takes to make a go of it, don't worry about the big boys, let them worry about you! I have plenty of competition in my area, and other players nearby who've got a lot more dough to throw at their customers to attract trade, but my volume and turnover still continue to grow each year! Just focus on the job that you do, be aware of what else is out there, and look at ways to constantly refine your product And remember, in many respects these franchises are still serving up the same tired format / coffee / service (albeit successfully in many instances) that they have done for many years, and to a certain extent they are locked into serving stale coffee, and a million and one variations on a "Mocha Creme Caramel Swirl" Whereas the little guy has almost infinite variation in terms of how they present themselves, and the product and services that they have to offer. Figure out what is missing in your neck of the woods, provide that service better / smarter / cheaper - or competitive with what else is out there - and you've got yourself a potential formula for success! Good luck! PAt

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• GrindOnDemand

  July 2007

  Thanks Pat - wise words indeed.  I too have plenty of competition in my current operation - and being mobile, the competition changes at every stop!  I've managed to build a very healthy & loyal customer base over 4 years, 'cause I'm pedantic with my coffee, & customers return not because I'm convenient, but because they like the product (most schedule meetings around my arrival time to avoid missing out!).  So confidence isn't so much a problem, and yeah you're right I shouldn't fear GJs.  Just keep wondering though  :-? why oh why are they taking over the streets, and surviving???  Surely the bubble's going to burst and customers will wake up and say 'yeah, my tastebuds deserve better'! >:(

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• askthecoffeeguy

  July 2007

  just think of their demographic: young and younger or old school 'flat white extra hot' brigade which is why it doesn't matter so much if the end product is not as good as it could be elsewhere still all of those young things are gaining an insight into the coffee experience that they might not get otherwise is a lot like drinking wine.  many of us would've started off on the cask wine, cheap and cheerful, then graduated to finer wines as our palates grew more refined same thing with coffee that's where i think that we in the industry have a role to play fining and refining our own palate, and educating the public pat

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• GrindOnDemand

  July 2007

  mmm wine ... yes Pat, glass of Vasse Felix 2005 sav/blanc (their better year, methinks) by my side as I write (I know it's bloody red weather, but I just made a fantastic parpadelle marinara with leek, shiitake mushies & dill tonight, saturated in cream, that just screamed crisp white, with organic sourdough bread to soak the juices).  But anyway Focus, right - the coffee, not the wine site... Your insight's interesting, vis-a-vis demographically why & who they (multi-nats) pull in.  Uneducated palate you basically reckon?  yeah, agree.  McDonald-ization of the cafe feel, I feel.  Your op at UMelb would see a hellovalot more younger clientele than me, as mine is essentially time-fraught business-frenzyhead based.  So I appreciate your take on the psyche of young preferences. Old school 'flat white', scorch your tongue hot brigade ... probably never convert.  Too in their ways. By the way, what's wrong with a 4 litre cask of De Bortolli red 'blend' to pass the night away?! Cheers, Tony

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• askthecoffeeguy

  July 2007

  too much sulphur

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• psaigh

  July 2007

  Check out this link (writen by David Schomer) http://www.espressovivace.com/archives/lucidcafe/LC28.pdf It's an article titled "On The Table #28 How to Compete With Starbucks" and I believe is paramount for anyone in our industry to read. I say go for it as long as you are confident that your product (coffee, not ice'd crap) is at least 20-50% better than theirs (which wouldn't be hard).  Take into account your experience with regard to coffee and available suppliers. As long as you can stand by your product the fact that a gloria jeans is opening up is a good sign of a stable coffee drinker market place.  They don't generally get their locations wrong. One last piece of advise, don't try to compete on price.  Having worked for that company for many years (a fact i try and keep hidden), i can tell you directly that you will never be able to source your products cheaper than them (unless roasting your own), and your margins will eventually eat away at you.  GJ's will always attract the cheapest of coffee customers, and to be honest... let them.  Offer a superior product at a competetivley similar price and you'll do well.

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• GrindOnDemand

  July 2007

  Thanks mate.  Just finished reading that excellent article you linked.  He seems very switched on.  Good to read your insight as well considering you've worked there.

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• DoubleRistretto

  August 2007

  Hi mate - i would say go for it also - not based on articles, but just observation; many people used to think that hole-in-the-walls were a but 'suss' but I think there are more and more people who are starting to appreciate that it's often the sign of serious espresso, and if your product lives up to it, word of mouth should spread quickly. The other thing is that you've got small floor space so presumably your overheads will be much lower in proportion. Don't hold back on the signage, and also the loyalty card thing - I say go for it! dR

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• GrindOnDemand

  August 2007

  Thanks to all respondents who've overwhelminghly supported my gut instinct to 'believe in your goods', & don't be daunted by the big-boys! DR, love your forum name ... 40ml from 2 separately timed double shots?  How's your double ristretto poison done? Cheers,Tony

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• queen_of_coffee

  September 2007

  Go ahead and bite the bullet. I worked for gloria jeans for 2 years, and still to this day believe that smaller cafes have as good, if not better coffee than those chain giants.

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• fattylateplease

  September 2007

  my last gloria jeans coffee was rated 1 out of ten. The top of my latte was white and the coffee was watery and tastless.

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• psaigh

  September 2007

  Watery and tasteless? you got lucky... Most of their coffee is horribly bitter and chary.  A horrifying taste that lingers in your mouth for months to come! Not Gloria jeans i know, but funny all the same.   I was watching one of the spots for and upcoming movie 'the perfect cuppucino' and in it it says the #1 complaint for starbucks (in the US) iswait for it... ...It's not conventient enough!  <--how funny ;D

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• One-a-day

  September 2007

  my last gloria jeans coffee was rated 1 out of ten. The top of my latte was white and the coffee was watery and tastless.

  So did you take it back and educate them or are we the lucky few to hear about it ? crap coffee's not just a big corperate thing it can happen anywhere

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• eatmedia

  November 2007

  Coffee has become a part of most Australian's Everyday life. With the coffee comes the barista and while you are waiting for your coffee most people prefer to go somewhere that the barista knows thier name and how they like thier coffee. Simply having someone read out your name from a monitor and then rush you out of the production line is not half as warming as having a nice chat with the one that gives you your caffeine fix. I know my main baristas' names and i consider them friends. in fact i see them more than my own family. If the coffee you are producing is the same as gloria jeans then you might as well apply for a starbucks franchise but that is another story. Its not all about the coffee in fact most of it is about the barista  

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• psaigh

  November 2007

  That is true to a point.  Except for when the coffee really is about... ...the coffee! I've worked for many franchises as a barista and as a manager and i still new the names, coffee's and all those little nuances (their exact temp, when 'they' like their shots cut etc.) of every one of my regulars.  I don't find it has anything to do with the franchise vs boutique debate. In fact, I've met and educated more passionate and enthusiastic barista's within a franchise model than outside of one (they have, god bless them, all since moved on from the big chains). But for me, if given the choice between a decent coffee from someone who knows my name and can pep me up and coert a little conversation while i'm waiting for my espresso.  And renaming nameless, faceless and being all but completely ignored.  But then receiving an absolute stella coffee at the end of this so called experience i'd chose the latter every time. Coffee should speak for itself.  It's great to jazz it up a quirky barista who helps you to feel ownership of 'your' cafe.  But it's far better (IMO) to drink truly great coffee. :D

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• askthecoffeeguy

  November 2007

  The other main difference b/w the franchise role model and the independent operator is that franchises tend to be ground-breaking when they start out - to do things in new and exciting ways with remarkable consistency, which captures a whole new coffee audience, but, by their very nature, franchises are slow to adapt and to respond to change. In order to be a market leader, and I'm not just talking about growth in sales here, it is important to be where the change is, to be quick to adapt, and to initiate change in new and innovative ways that bring a noticeable superior product to the market place - and this means embracing risk, which is not a comfortable buzz-word in franchise circles. Smaller operators have the potential advantage of being owner operated, forging long-term relationships with customers, and the ability to enjoy a higher retention rate with their staff, due to closer and more personalised / customised working relationships. Look where the innovation is coming from in the coffee industry: boutique roasters willing to experiment and take risks with their product, and who keep innovating until they end up with an exceptional end result. Viva la difference Pat!

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