“This is the first year, since Turabo entered the market, when we have not raised prices. Every year, in March, we increased prices 7-8 percent. We are losing hundreds of thousands of euro annually due to the depreciation of the national currency, because we pay in lei, at the BNR [the National Bank of Romania] exchange rate, and we are paid in lei. The price of utilities rose, as did some rents, and all the merchandise is more expensive. All alcohol and coffee products are 20 percent more expensive, but we cannot raise prices,” Niculescu, Chief Executive Officer (CEO) of Turabo Group, told Business Standard.
The company’s anti-crisis strategy also focuses on network expansion. The Turabo chain included 38 coffee shops at the end of 2008, and the company official plans to reach 50 units by the end of this year.
Turabo posted €12 million in net sales in 2008, and estimates a €2-3 mln rise this year, to €14-15 mln. The company’s main competitors are Cafepedia (controlled by businessman Catalin Mahu) and City Cafe (owned by Dragos Petrescu).
