Retail Food Group (RFG), Australian operator of global food and beverage franchises, has announced the acquisition of Cibo Espresso, a boutique coffee franchise, from Retail Zoo for AUD 2.7 million (approx. $1.8 million).

The deal, funded by cash on hand, is expected to accelerate RFG's growth in South Australia. Founded 23 years ago in Adelaide, Cibo Espresso has 22 retail locations, including four company-owned outlets.

RFG expects to invest approximately AUD 1.3 million (approx. $853,000) into the South Australian network to provide incentives, including capital commitments, to the coffee shop's franchise partners to accelerate its transition to Gloria Jean’s.

The purchase is also expected to create synergies by using RFG's Castle Hill roastery to supply Cibo Espresso stores. RFG's focus on coffee as a core business will enable franchise partners to benefit from expanded product offerings, such as cold beverages and acai bowls, aimed at boosting sales. Franchise partners will also have access to a larger marketing fund after converting to Gloria Jean’s.

Additionally, RFG plans to leverage growth in network sales across support functions like IT, finance and leasing to improve operational efficiency.

RFG's CEO, Matt Marshall, said: "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".

The transaction is expected to be completed by mid-fiscal year 2025 and to become accretive in fiscal year 2026, following the acquisition and conversion costs incurred in fiscal year 2025.

#RetailFoodGroup #CiboEspresso #RetailZoo #Australia