Cafe chains in the Czech Republic are facing lower attendance due to the coronavirus pandemic and related measures, but they plan to open new branches this year. The number of people ordering refreshments has increased, so companies intend to focus on improving this service, as well as expanding the range of drinks and meals. Due to rising prices for coffee, energy, transport and other input costs, some chains are becoming more expensive.
The British chain Costa Coffee is expected to grow by two cafes outside Prague in the second and third quarters this year. At present, there are about 60 of them in the Czech Republic. “With each additional measure, there is an immediate decrease in attendance. ” said Aleš Fránek, Director of Costa Coffee CR. Due to the development of the pandemic, the brand wants to expand the service of home delivery to customers in locations where it is not yet available.
According to Fránek, entrepreneurs have to deal with rising prices at all levels, from wage increases, through rising supplier prices to higher energy prices. “Raising is always the last resort for us, but given the overall situation, unfortunately it cannot be ruled out,” he said.
The Czech network CrossCafe plans to open three new cafes this year, currently running 20. In February, it will present new conditions for potential franchisees, the aim is to make it easier for those interested to operate a café. CrossCafe also monitors the decrease in guests in branches. The reason is government restrictions and an increase in the number of infected. “Previously, 65 percent of the guests stayed in the cafe and only 35 percent took the order with them. Today, the ratio is balanced,” said David Stangle, the company’s director.
CrossCafe wants to strengthen its lunch offer this year, and people should be able to choose from several types of main courses. The cafes will fully replace a visit to the restaurant, said Stangle. He added that the company had to increase prices last year, he is not planning another price increase.
The cafes are part of the German company Tchibo, of which it has 45 in the Czech Republic. on the offer of locations and also the conditions in the given place, “said company spokeswoman Eva Kotýnková. However, the company wants to continue with the concept of temporary stores, so-called pop-up stores. According to Kotýnková, attendance at stores fell by about 30 percent compared to the pre-crisis period.
Tchibo plans to raise the price from February 1. “The increase in prices is mainly due to a significant increase in the prices of green coffee on world stock exchanges, as well as permanently rising prices for transport, energy and packaging materials,” said Kotýnková.
The Polish chain Dobro & Dobro cafe entered the Czech market last year, opening its first café in the center of Prague in Purkyňová Street. It expects to expand next year, depending on the situation around the pandemic. He is now preparing a spring coffee menu and breakfast changes. He will cooperate with the Wolt delivery service. “In terms of rising prices, we may see the price of coffee stabilize and recalculate. We think the increase will not be significant. At the moment, we have quite reasonable prices for the entire range,” the company said.
The American café network Starbucks also operates in the Czech Republic with about fifty branches.
Source: CTK
