After having seen sales fall by at least 20% since the beginning of the year and having dropped most expansion plans, coffee shop owners are looking for solutions to survive, with the coffee shop inside a fashion store being one of the most novel options.
The location of a coffee shop is no longer the only factor that drives the increase in the revenues of entrepreneurs investing in such a business. For the first time in the last few years, coffee shops are faced with a drop in the number of clients, which is not because they chose other coffee shops in better locations, but because the ‘going-out’ budgets have been slashed.
"We posted a 20% decline in sales compared with the same time in 2008. People tended to stay at home or go to an outdoor place, but only did that after six p.m. It was a combination of early summer and crisis, with the crisis prevailing, of course," said Radu Marinescu, general manager of Gloria Jean’s Coffees, which manages five cafés in Bucharest, franchised via Gourmet Products Servicii company.
Whereas in May new franchised coffee shops were on the waiting list for opening in Braila, Focsani and Bacau, with Bucharest set to get three more cafés, as well, two in shopping centres and one in a street front location, only the plans for the shop in Cotroceni Park mall, scheduled to open at the end of the year, will materialise.
Many companies have shelved any development projects, after a year of regular new shop openings.
There are also players who continue investments in coffee shops, seeing an opportunity in the declining rents and the departure of other retailers that brings out prime locations, which are much more affordable.
Most, however, keep this business going through another, bigger business. "Over the coming period we will continue to develop the Cup&Cino network in the stores of our clients. We are c
