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This can be explained by the Latvian market, which may be too small for the Starbucks brand chain.
“The Starbucks brand is strong. It is a product for the masses, ie the business model of this network requires a large flow of people to operate. Therefore, given the total population of Latvia, which is around two million, Starbucks in our market is very questionable, “admits Plotnikov.
Another important factor is the competitive conditions in the segment of coffee beverage retailers and cafes.
“It should also be noted that the existing market players – us, Coffee Inn, Costa Coffee – are highly competitive. Narvesen, Statoil, as well as retail chains are also involved in the redistribution of the flow of coffee lovers. “It would be easy for Starbucks cafes to survive in Latvia with the brand alone,” Plotnikov is skeptical about Starbucks’ prospects in Latvia.
As reported, the turnover of “DC restaurants” last year reached 3.96 million euros, which is 6% less than in 2014, when the turnover was 4.24 million euros, according to “Firmas.lv” information.
The company’s profit last year decreased by 70% – last year the company earned 113,361 euros, but in 2014 the profit was 385,065 euros.
SIA “DC restorāni” was founded in 2004. The share capital of the company is 853,723 euros. The company is fully owned by JSC “DC Holding”.
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