Jamba Juice in agreement with Capgemini; to focus on franchising

Emeryville, Calif. -- Jamba Inc., operators of Jamba Juice stores, reaffirmed its commitment to accelerate its move to an asset-light model with the announcement that the company has entered into an agreement with Capgemini, a leader provider of consulting, technology, and outsourcing services. (Asset light means a company is focused on franchising and managing locations rather than owning them.) The agreement provides enhanced administrative tools, technology services, and capabilities for Jamba, and is anticipated to create workflow efficiencies while reducing costs as the brand pursues a 10%-20% reduction of overall G&A in 2015.

As part of the drive to an asset-light model, Jamba is also initiating an expanded franchise recruiting and development program. The company is targeting the addition of 500 new stores in the next five years. Combined with Jamba’s ongoing refranchising initiatives, Jamba is expected to move to an 80%+ franchise-to-company-owned model in the next 18 months.

Under the agreement with Capgemini, specific administrative tasks, including application maintenance and development as well as finance and accounting support, that are currently being handled internally at Jamba will be transitioned to Capgemini, providing Jamba with enhanced efficiencies in key areas. The transition, which will utilize Capgemini’s global enterprise model methodology for business process transformation, is expected to contribute to the 10%-20% reduction of overall G&A.

“The relationship with Capgemini is intended to provide the Company with the tools and capabilities required to support our growth plans,” stated Karen Luey, executive VP and chief financial and administrative officer, Jamba, which operates Jamba Juice stores globally. “This move is part of our ongoing efforts to enable rapid global growth supported by world-class infrastructure, processes and systems. We are providing strong outplacement support for affected employees and we were able to find roles within the organization for a number of those whose positions will be transitioned.”

 

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