Budapest Coffee Wars Continue as Coffeeheaven, Costa Prep New Prestige Locations
We should probably be focusing on things a little more substantial than the coming and going in the local premium coffee shop biz, but since our related post last week created a nice dollop of comment froth, we'll follow-up with an update on the situation.
First, from various sources we hear that Coffeeheaven will open up a new location in Budapest next month, on the corner of Deák Ferenc utca and Sütő utca in District. We walked by this morning and, sure enough, it's a nice and big - and probably very expensive - corner location at the eastern end of the much-hyped shopping drag known as "Fashion Street." What's interesting is that, according to this piece in property trade magazine CIJ Journal, the Warsaw-based company is adding to its presence in Hungary as it pulls out of the more faster-growing Slovak and Romanian markets. Maybe they just think Hungarians could use a little more caffeine.
Meanwhile, it seems that Costa Coffee's decision to pull the plug on its Nádor utca shop may be for the exact opposite reason that we initially thought.
As it turns out, Costa is actually in the process of renovating a venti-sized space on the corner of Andrássy and Bajcsy-Zsilinszky, which, according to the above piece, had initially been slated to take a Starbuck's. (Pic was also taken this morning.) As for why the Seattle giant didn't jump at the chance to take the spot, price may have been an issue. Through the grapevine we hear that the rent on the space is €16,500 a month, or just south of Ft 5 million at today's exchange rates - or 10,000 cups of coffee at Ft 500 a pop. Hope they make sure to hire some quick-ass baristas!
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Yes and a new Coffee & Co has just opened on Nagymezo, next to the Operetta szinhaz. You would imagine that these big companies do their sums. But I fear they only know half what they need to know until it's too late. I welcome any business that provides choice, employment and make improvements to the area they occupy. I enjoy a cup of coffee, with a slice of cake, sandwich and Budapest does offer a varied choice. But with it great differences in the price you pay and the quality you get. In my experience there are dozens of small places that offer great coffee/snacks without the WiFi invasion. Cafe Pertu and Treehugger being two. The Cafe Pertu sandwiches are tops. And at both these places you get greeted with a smile.
Coffeeheaven's rapid and successful roll out in Poland (now something like 120 locations)has done a lot to pre-empt Starbuck's entry in a serious way into the region. AmRest, the owner of the Starbuck's franchise rights in CEE, understands how competitive the Warsaw market has become, and how difficult it will be for Starbucks to break into that market (especially with the now serious slow down in new shopping malls being built in the region). Without a strong base in Poland (and especially Warsaw), there are limited economies of scale for AmRest to start investing in Starbucks in the rest of region. The couple they have opened in Prague will, I assume, survive but a further introduction is now a long time away. In the meantime, Hungarians can appreciate a little Polish/Swedish entreprenuership when they visit Coffeeheaven, and wonder why Hungarians could not manage the same thing.
must say, it is still better than all the Starbucks (calif.) in every corner..that taste of burned liquid something!
often based on the busy corner (of course), but if you review the other side of the street there is also often has one...that is what makes me puke
Starbucks is a miracle of marketing. You can sell overpriced coffee, lousy service, as long as you manage to grab all the prime locations.
Back in the old days you had to be good to survive. Now you just have to be big. Pretty soon we'll have no choice but to feed on the same mass-produced crap. Globalization and multies vs. taste and quality.
Well, I think Starbucks can't be *that* bad, given how popular it is, even in towns where there are lots of options, like Seattle. And in my experience in the states, the service is usually pretty good, no?
Even americans says the coffee is burned, but it's convenient for them, and still hipp. My favorite is the chocolate chip Frappuccino (not coffee) Service is fast and pretty good.
I visited only two Starbucks shops, one in the former Aladdin Casino, the other at McCarran Airport, both in Vegas, both terrible, so I never tried my luck again.
Chef & Stan, you nailed it, Man!
Starbucks (or was that Szarbucks?) ain't happy until they've got every corner on both sides of the street. Sure, competition is health, but that kind of blatant greed makes me puke.
Costa's and Gloria's and Heaven are just WAY overpriced for Budapest: why pay 500 for a cappucino (in a paper cup, no less?!?) and 800 for a muffin?
I'll add Aztek Choxolat in the little alley b/w Kiskorut and Szemmelweis to the absolut top coffee & service list, but they've only got 3 tables, so no fair takin' em all up!
Erik,
"can't be *that* bad, given how popular it is".
You gotta be kidding. Things can be "bad" and "popular" at the same time. As long as "bad" refers to low quality stuff, and "popular" means lots of people with no taste buying it. There are many examples from fast food to rap and hip-hop, all popular and all junk. On the other hand, they make big bucks for those greedy bastards who don't care about anything else but profit.
I would happily pay the 600 Ft. for a real coffee at somewhere like Costa. Lots of others seem willing to do the same. Hungarian cafes tend to cut corners where possible and it's difficult to get proper coffee in Bp.
Save us from terrible american coffee (together with american "beer" and american "cuisine" like hamburgers or mcdonalds)...
Hungarian coffee is already way superior to any of those fatty, sugar nightmares that they offer... One "coffee" has about the same amount calories than proper lunch...
If anything, more of authentic italian coffee would be nice... (and it would be time to learn that cappucino is a breakfast coffee)...
@Anonymous
I won't defend Charbucks or mass-produced American beer, though I do prefer a good cup of American drip coffee, but who are you to impose your tastes on everyone? People want to eat McDonalds or drink Charbucks that's their choice. If they don't, fine, the business fails...no tears here. You point about these being fatty, caloric disasters is a bit odd inside a country where they eat zsiros kenyer, deepfry everything, and serve it with sourcream don't you think?
Personally i am not fan of american coffee (or beer/fast food) either, but of course market economy will dictate the success or failure of any venture.
However, in terms of health effects, i do believe that hungary does not need any more unhealthy options (and all these chocko latte mixes are worse than a big mack meal) and as far as i know even in US there is discussion of making producers/sellers responsible for the health impact ala tobacco etc. i might not be personally in favour of legal ways to enforce healthy life style (although we all end up paying for other peoples' lack of that in europe via high taxes)however additional unhealthy options are something _I_ would not wish to see (especially as the marketing might target young/growing children).
Coffee & Co has just closed on Nagymezo, just over a year after opening. It was still open on Friday, but last night it was emptied and the doors locked.