Cafe chains continue to expand on the Romanian market

This year, the main cafe chains in Romania continued to expand, but owners had to re-consider their strategy in order to maintain the estimates made at the beginning of the year. Therefore, they have relocated the less profitable cafes, have renegotiated rents and focused more on commercial centers, where investment is lower than in street locations, favorite in the past years.

The expanding strategy of Turabo cafe chain, owned by Tudor Niculescu businessman, included opening 12 new cafes in 2009, which would have expanded the network o 50 units nationally. But Niculescu stated that the plan will not be completed and the total number of locations will reach 47 by the end of 2009.

The businessman stated that, in the future, the investments will focus more towards commercial centers, as they are more flexible considering rent level and the facilities provided.

The investment in a cafe opened in a commercial center reaches EUR 80,000 - 100,000, while for a street location the amount is at least double, specified Niculescu.

Bourbon Cocktail&Coffee cafe chain included 13 locations at the beginning of the year and will exceed 20 units nationally by the end of the year. The new units were developed under franchise system.

Ciprian Maer, Franchise Manager of Bourbon company, stated that the company is currently operating 18 cafes in the country, but three more units will open until the end of the year, one in Predeal and other two in the towers of City Gate, Bucharest.

Similarly to Turabo chain, Bourbon Cocktail&Coffee units prefer locations in malls to street locations.

Gloria Jean’s Coffees network launched a different expanding strategy up to each city.

In 2009, Gloria Jean’s Coffees opened two new units and relocated one from Plaza Romania commercial center in AFI Palace Cotroceni, due to lower costs, as well as to the vicinity of the two malls, which allowed the network to keep its presence in the area.

Radu Marinescu, General Manager of Gloria Jean’s Coffees, stated that street locations are preferred for expanding in Bucharest, while malls for cafes outside Bucharest.

Sursa: Business Standard [02.12.2009]