"While Coffeeheaven is to withdraw from Romania and Slovakia, it plans to open further cafeterias in Hungary. Starbucks could follow suit soon, with its first coffee shop to open in downtown Budapest, in Váci utca, business daily Világgazdaság said on Thursday.The main reason to leave Romania behind was that infrastructural deficiencies and corruption would not allow building up a dynamic business environment, said Richard Worthington, CEO of Coffeeheaven International Plc.
In Slovakia, he said, they felt that the economic growth everyone praises as a “Slovak sensation" was rather wobbly. Worthington noted the Slovakian economy leans too much on the car industry, which makes the market vulnerable.
While Coffeeheaven's history is far from being long on the above markets, it closed two cafés in Slovakia and one in Romania.
Coffeeheaven debuted in the Hungarian capital city about 18 months ago. It currently has two cafés in Budapest, one in Arena Plaza and one at Ferenciek tere (a square in the 5th district), but expansion is in the pipeline, with two further units to be opened in Budapest.
The company's biggest market is Poland with 54 cafeterias.
Coffee franchise giant Starbucks is also expected to debut in downtown Budapest (Váci street) soon. The company opened its first café in Bucharest, Romania last year, which was followed by another three. Since end-January this year, it serves coffee in Prague, as well.
In other regions the company has already closed the weakest links in its chain, as its profit plunged by 97% in the past three months due to depressed demand for coffee. In Central and Eastern Europe, however, it may still see a potential."
Source: Portfolio Online Financial Journal
21.11.2008