Opening a coffee shop

than 15 years since Londons espresso cafe new wave spawned a boom of coffee houses across Europe. Early players like

Opening a coffee shop

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uot;, they manage to find a place anywhere.

coffee investment market advantage



. Starbucks. Number one in the world has also become a leader in Europe for coffee.

. Tchibo. The leading German company roasting coffee with a unique multi-channel sales system. It operates in seven European countries in various formats, coffee bars - from the mini-modules and kiosks to full stores. 800 establishments 500 of them are situated in Germany.

. Costa Coffee. Established in 1985, the company is owned by White bread. The total number of coffee shops around the world - 936, of whom 686 are in the UK, where the network is superior in number of coffee houses Starbucks.

. McCafe. The concept of 'shop in shop "from McDonald's, born in Australia and has appeared in 11 European countries.

. Segafredo. This chain of coffee shops was established in 1998 with the points in 30 European countries, this brand has become one of the most common.

. Caffe Nero. Caffe Nero - № 3 of freestanding stores. 102 points in London and 244 in other parts of the UK. Among the latest steps of the company - the development of mobile kiosks Nero Express for train stations. The brand emphasizes the creation of an authentic Italian atmosphere and a special blend of coffee varieties with the exclusive features of music and local color.

. Caffe Ritazza. Coffeehouses format airports, train stations and roadside eateries created by SSP International, specializing in providing discounts on travel packages. Number of stores in Europe: 281 in 18 countries (United Kingdom - 181).

. Caffe Revive. Cafeteria with a full range of espresso, which uses products Fairtrade, developed by Marks & Spencer for their stores. Establishments in Britain and Ireland have become more stylish and "fresh" in the last year or two. Some of the larger stores M & S also got "Barami delicacies" (7), "Hot food like hot cakes" (27) and "Kitchen M & S», where in addition to meals offered espresso menu.

. Hema Koffiebuffet.

. BB's Coffee & Muffins. In the UK, appeared in 1997 About 180 outlets, mostly under a franchise agreement - in the mall the UK and Ireland. The range is complemented by sweet coffee and hearty muffins freshly baked pastries offered around the clock. In addition, in some stores you can buy New Zealand natural ice cream, sorbets.


London - the capital of coffee

than 15 years since London's espresso cafe new wave spawned a boom of coffee houses across Europe. Early players like Aroma, Seattle Coffee and Madison's already left the scene, however, such international brands such as Starbucks, which opened its first European subsidiary in London's Kings Road in 1997 and has a large number of coffee bars in London (120) than in any other city in the world, showing significant activity. Another strong player is a member of the British Whitbread group company Costa, which, though numerically represented in the UK a large number of coffee shops, but entered the London market after Starbucks. However, recently it has started to develop much more active part, due to a more original approach to the selection of sites for new stores and franchising policy. These stores can be found in Banks (joint venture with Abbey National), supermarkets (Tesco), offices, bookshops (Waterstone's and WH Smith), as well as in more typical places - on the streets in the city center, railway stations, airports and shopping centers. (Starbucks Coffee Company, 2012)Nero, the coffee brand number 3 in the UK, particularly firmly settled in London, with its 102 stores. All property of the company. Last year the company became even more pronounced with the installation of trading on the removal of mobile kiosks Nero Express main railway stations, where previously housed AMT. After attempts to divide the ownership of other firms the company returned in 2007 to the private sector, and company founder Jerry Ford became CEO and majority shareholder of the company.(Caffè Nero, 2012)has become increasingly important and traditional bars. Network of bars with large rooms, J D Wetherspoon offers a wide selection of coffee in all its branches 685 (many of them - "oversize" bars in London and surrounding area) and has already invested about £ 6 million in the necessary equipment and training. How to compare visits to bars, visiting coffee bars, remains a contentious issue, but Wetherspoon now expects to sell at least 500 cups per week in each of their establishments. The network is growing at a rate of 30 units per year and aggressively promoting the pricing policy more affordable than Starbucks (which has raised prices twice in 2007) and other brands of coffee bars.King, another giant chain of pubs, posted operating under a franchise agreement Coffee Republic branches in 30 of its bars, and next year plans to add 40 more.addition to price competition Wetherspoon is not a key factor in sales of coffee in London, where the average bill in a coffee bar reaches 3.32 lbs. Chain of sandwich bars, Benjy's, which once was known for a cappuccino 30p, went bankrupt in 2007, all the last decade, McDonald's coffee bars placed the McCafe with reasonable prices in some major institutions in London, but now there was only one coffee shop in the Birmingham area. New style of this network, which offers an extended selection of coffee in the main menu, it is considered more appropriate. (McCafé Coffee , 2012)

Hardly able to compete with the major brands of coffee, a hybrid point of the German network Tchibo became more noticeable in the London suburbs, mostly in the main streets of the suburbs. It is also one of the few coffee networks to advertise on television. Of the 76 points in 52 Tchibo is coffee-bar with a wide selection of drinks based on espresso, sandwiches, pastries and cakes next to the shelves with inexpensive goods for the home. In the largest institutions of 25-30 seats. At the coffee bar between 10 and 60% of overall sales, depending on the location of the point. (Tchibo Coffee Service <>, 2012)


New Directions

continues to dominate in the UK coffee business since about a third of departments stores all networks are in the British capital. Analyst firm Allegra Strategies describes the total number within the M25 ring road around London - 1055. On the rest of the UK - 2120. At the beginning of the decade, up from 626 and 1382, respectively. (Allegra Strategies, 2012)of brands did not stop the newcomers to enter in this market, and is believed to be about 20% of independent coffee bars in Britain opened just last year. However, the "big three" brands in the market are now pulling and leading, and there is increasing evidence that some of the brands of "second tier" will soon fizzle out in this race. Nevertheless, some of the smaller operators in London, offering a variety of menus and services continue to thrive. One such example can be Benugo, having five cafeteria in the capital, plus 15 branches in office buildings and two museums. (Allegra Strategies, 2012) Flat White, one of the newcomers, serves coffee in a style popular in Australia and New Zealand. The unusual name derives from coffee for a silky patterned foam, which is covered with a strong espresso. You can call other interesting Italian concept of the new wave, such as Spianata & Co and Amano. Cafe Coffee Day decided to enter the market in London for the sale of coffee with a new service by providing WI-Fi Internet access for their customers, as well as the sale of sandwiches, pastries and cakes and "carry away service" and use the sticker on the box: "Made today - sold for today" (no one is left alive sandwich at night:) Fresh - a key principle of this concept.


Key features of the London market


The growing population. After decades of decline in London there is a net increase in population of 50-70 thousand people a year, according to some studies. The official population of London was about 7.5 million people in the middle of 2006, and the total population of the suburbs - 8.3 million people. (UK National Statistics, 2012)

The local nature of the purchases of coffee requires a concentration of stores in key areas, although prices there are among the highest. Companies need to focus on the key elements of trade, depending on time of day, such as the organization breakfast, and in most running stores locations receive a maximum return in the evening. Caffe Nero is usually close later than other stores - no earlier than 7 o'clock in the suburbs and at 11 pm in some central branches (4 in the morning in Soho).

Competition in the field of "caffeine sales" with well-known brands from other segments of the food market - from a long-established in the market sandwich networks such as Pret A Manger, EAT and the more expensive institutions such as Carluccio's, Paul, Apostrophe, and Le Pain Quotidien, to hundreds of "niche" cafe selling donuts, burritos, muffins, juice and pastries.


Assessment of risk and costs

, legal and economic risksrisk arises from the storage assets in another country and is linked to political, legal, economic changes and problems of control, as well as cultural and linguistic characteristics and geographical location. Country risk is relatively small in England. But do not forget that the concentration of its resources in only one market, increases its ex

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