Almost exactly a year ago we reported that the three Gloria Jean’s coffee shops in Budapest had been closed. At the time the company behind the local franchise, Gourmet Products Vendéglátó és Kereskedelmi Zrt, said it was not going to leave Hungary, but open up locations outside of Budapest with an eye towards an eventual return to the capital. So much for that! According to penzcentrum.hu, the firm has instead initiated its own liquidation. The first BP GJ’s – which was on Hősök tere – was among the earliest foreign entrants in the now-booming high-end coffee-to-go market. That branch was followed by others in the Mammut mall in Buda and on Pest’s Teréz körút. When it was in growth mode the company said it was planning to open 10 to 15 shops. Next, please.
Gloria Jean’s is a struggling chain because it has not succeeded in taking market share from others.
I have long felt that premium coffee chains should consider alcohol sale as well. Doing that could bring in a lot of trade. There is centuries of precedent for combining coffee with liquor. I would train staff to be both “barristas” and bartenders. Especially in a time of global recession, such an arrangement could be a financial lfe-saver to a chain coffee vendor.
Somehow can’t see the neighbours voting in favour of coffee shops also serving beer. In anycase that’s what they do – coffee, with all sorts of cakes and the likes. Leave the beer pouring to the bars.
A coffee shop selling alcohol, is that not called a kocsma????
What is the difference between a kocsma selling coffee???
Dear Patrick,
Beer wasn’t really what I was thinking of. I would envision something a bit upscale, like the Starbucks target market being offered liquors, mixed drinks and coffee/liquor concoctions. People who can buy the top tier of Starbucks specialty coffee drinks (which are not cheap) can easily afford to have, for example, rum or Kalua added to them. The owner can then charge double, at least!
As far as the neighbors, it’s just a matter of finding the right location. An appropriate place for an upscale coffee bistro can always be found.
In Héviz and Keszthely we have this type of “Bistro” – but it only florishes in summer when there are enough tourists around.
The locals prefer a kocsmá like the “Vén Bakter” in Héviz where you get your fröcs and pálinka at 6 o clock in the morning …
Laszlo… now I get your idea, that makes more sense. It actually sounds good right about now too. A nice tall coffee with a shot of Grand Mariner… but how much would you charge for it?
Do you think in this economy that there could be a market for this? Premium coffee such as Starbucks is very expensive, add to that a shot of top shelf, and you are looking at about 800, 900, or 1000Huf. I don’t think that I would pay that much for a coffee/shot. The sad part is most Hungarians could not afford to keep you in business with the economy the way it is.
Yes, Shangri La, I’ve often wondered: You pay around a thousand for a complete meal, but in Héviz a sundae is about he same price.
For the tourists that’s no big deal – a pint of lager (which I’ll be having soon) in our local bar (here in Germany) costs 3€, about 800 HUF – and I’ll be having two at least …
But for the locals in Hungary, again, that’s a different matter.
Dear Shangri La,
The idea has global applicability given the right location and target market. Right now, given the world economic slump, would not be the best time to start a business, but when things pick up…
In Hungary, if one was going to do this, a shop location in an international hotel complex, or in any high tourist area would be best. Unfortunately average Hungarians would not be the best target group for this concept, at least not for an international franchise.
PS. Grand Marnier and coffee go well together! Good call.
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