“I am pleased with the results, considering the current market conditions. Unfortunately, we will not be able to finalize the expansion plans announced at the beginning of this year, namely the opening of two more coffee shops and four restaurants, because we are already at the end of the first six months and we are only just today opening the coffee shop in Iasi [eastern Romania],” Mahu told Business Standard. The investment in the Iasi coffee shop amounts to €120,000.
According to the official, as long as the level of rents in Bucharest remains high, the pace of investments will be slow. “It is virtually impossible to have a profitable business while paying a rent of €10,000,” Mahu said.
For the coming six months, the businessman will focus on the opening of new La Mama restaurants. “We want to expand our network both in Bucharest and outside the capital. The problem in Bucharest is that rents are very high for the spaces, while outside Bucharest, the major problems are low consumer purchasing power and finding skilled staff,” La Mama’s owner added.
The domestic coffee shop market is dominated by the Turabo chain, controlled by businessman Tudor Niculescu, while La Mama’s main competitor is the City Grill network, owned by Dragos Petrescu.
