Franchise Talk

Investor interest brewing in lucrative coffee shop market

December 6th, 2007 | Author: Jack

Gloria Jean’s Coffees opened its first cafe in Kyiv, making the Australian-owned chain the first international franchise to enter the Ukrainian market.

The company stated it plans active expansion in the capital and the country’s regions in the next several years.

The chain’s arrival coincides with intense development of the Ukrainian coffee-shop segment, with more Western investors expected, experts said.

One chain that might be interested in Ukraine is Starbucks, which expanded into Russia this autumn. The company has not made any official announcements in this regard and told the Post that reports in Ukrainian media regarding its plans to open 50 cafes in Ukraine next year were just rumors.

“The coffee-shop market in Ukraine is developing very rapidly, particularly in Kyiv,” said Gleb Marchenko, director of the Your Restaurant consulting company. “But it is far from saturated, so I can see great potential.”

The first Gloria Jean’s opened on Velyka Vasylkivska Street on Nov. 4 in downtown Kyiv.

The retail chain announced it is aiming to open at least five franchises in 2008, and up to 50 within the next 10 years in cities with more than a half-million residents.

Between 700 and 800 new jobs will be created as a result, said Yunus Shirin, general director of Gloria Jean’s Ukraine.

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