The first coffee shops on the US chain’s list of openings are in Constanta and Bucharest’s Pipera, but areas such as Piata Unirii, Universitate and Piata Romana are also being considered.
Starbucks has changed its strategy starting this year and is set to speed up expansion after having opened just one unit in the past four years, last October, in Promenada shopping center of northern Bucharest.
The new strategy also comes as the group changed its shareholding structure, after Greece’s Marinopoulos lost the coffee shop chain franchise. Today, Starbucks brand is brought to Romania through a joint venture between several Bulgarian entrepreneurs and the parent company.
“In early 2014, we changed our shareholders,” says Costin Gheorghiu, district manager with Starbucks Romania.
He gave no details about Starbucks’ shareholders in Romania, but according to market data the Bulgarian entrepreneur who owns the franchise for Bulgaria and who also has other businesses in the field, is involved.
Greek Marinopoulos has in recent years lost all the franchises it had in Romania, namely Sephora, Marks & Spencer, Gap and Starbucks.
Starbucks entered Romania in 2007 and has since embraced cautious expansion, to nine units at present. With the coffee shops it opened, the company covered the key shopping centers. Of the nine units, only one operates in a street-front location, in Victoriei Square area.
“Next on the list of openings are Constanta and Pipera, Bucharest. We are also seeking two-three other spaces in Bucharest and one outside the capital city”.
Costin Gheorghiu says there is still room for openings, but the company will go further with caution, only in spaces with potential, in order to have a healthy business. “We’re looking at cities of over 200,000 inhabitants. Any opening will be operated directly by the shareholders of Romania, we will not offer the franchise to other companies”.
One of the future coffee shops of Bucharest will become Starbucks flagship store in Romania. The chain won’t go to Bucharest’s old town as this is a destination for foreigners and Romanians coming at evening for fun and this is not Starbucks’ target.
“The best three coffee shops by sales are those of Baneasa Shopping City, Bucuresti Mall and Victoriei Square”. Since it arrived in Romania, the company has shut down just one unit, that of Liberty Mall, about which Gheorghiu says it is considered rather as a relocation as the company opened a unit in AFI Palace several days later.
The company in 2013 generated revenue worth EUR7 million in Romania, up 20% on the year and 66% above the 2010 level. More than half of the company’s revenue comes from coffee sales. In 2013 alone, Starbucks had two million clients in Romania.
“During the crisis, we chose to strengthen our business and develop our brand, to have a solid base for future growth. We were not harmed by the crisis, but there were brands that exited the market”, says Gheorghiu. He adds he does not see a rapid upsurge in consumption, but some progress can be noticed.
(English version by Catalina Apostoiu)