Coffee Like chain bought Coffee Moose business

Increased traffic in coffee shops could contribute to increased investor activity in this market. Thus, the Coffee Like chain, co-founded by the co-owners of the AST publishing house Pavel Grishkov and Alexander Boguslavsky, bought out the competing Coffee Moose project, which develops franchise coffee shops in 45 cities. Market participants expect consolidation to continue, noting that as costs rise, large chains can achieve economies of scale.

The Coffee Like chain bought the Coffee Moose business, Coffee Like told Kommersant. According to SPARK, Coffee Like LLC in February became the owner of the main Coffee Moose structure – Mayak 13 LLC. Coffee Like clarified that all managers of Coffee Moose coffee shops will receive a single menu according to the standards of the new owner and will be able to directly purchase raw materials and goods from the company, continuing to work under their own brand. Coffee Moose did not answer Kommersant’s questions.

The Coffee Like network was founded in 2013. According to SPARK, co-owners of the AST publishing house Pavel Grishkov and Alexander Boguslavsky own 44.02% and 3.25% of Coffee Like LLC, respectively. The remaining shares belong to Ivan Ermilov (29.4%), Arthur Voskanyan (16.25%) and Anton Makarov (7.08%). According to its own data, in 2023 the revenue of the Coffee Like chain was 7 billion rubles.

Coffee Moose was founded in 2014 in Izhevsk. Now there are 75 points operating under the franchise banner in 45 cities across the country, including Moscow. The Coffee Moose brand, according to SPARK, belonged to Alexey Mironov and Roman Nikitin, who also develop the chains of coffee shops New York Coffee and Jeffrey’s Coffee, HotDogger eateries, etc.

After the deal with Coffee Moose, the number of cafes managed by Coffee Like in Russia exceeded 1.1 thousand outlets, almost all establishments operate as franchises. Coffee Like managing partner Anton Makarov says that the company is following its previously announced strategy of expanding its presence in the market, including through the acquisition of regional coffee chains. Franshiza.ru expert Anna Rozhdestvenskaya points out that the already large coverage of outlets under the Coffee Like sign limits development and creates competition between coffee shops under this brand, and the new brand will allow for continued expansion. Ms. Rozhdestvenskaya estimates the value of the Coffee Moose brand at “several tens of millions of rubles.”

RestCon CEO Elena Perepelitsa says that purchasing an existing chain of coffee shops can be more profitable than investing in opening, since the buyer understands the efficiency of operating establishments. In addition, she points out, the restaurant business is often sold at a discount. The founder of the One Price Coffee chain, Sergei Rumyantsev, notes that in large cities the coffee shop market is already quite saturated and it is difficult to find space to open a new outlet, so buying an existing player may be a way out. But, he points out, the financial results of small chains are not always transparent, which adds risk to such transactions.

According to calculations by the Check Index service of the fiscal data operator OFD Platform, in 2023 the number of purchases in coffee shops increased by 14% year-on-year, and the establishments’ turnover increased by 25% due to an increase in the average check. According to Smart Ranking, sales of takeaway coffee in Russia in 2023 increased by 21% year-on-year, to RUB 102.7 billion. And the increase in demand stimulated the opening of establishments. According to 2GIS, the number of coffee outlets in the largest cities of Russia over the past year increased by 10% year-on-year, to 15.4 thousand facilities.

Sergei Rumyantsev predicts that the consolidation of the coffee shop market will continue, noting that it is more difficult for small chains to continue operating in the face of rising costs. As noted in Restcon, the restaurant business is affected by rising food prices, increasing rental rates and a worsening problem with staff shortages. Director of Business Development at Shokoladnitsa Group of Companies Evgeniy Prokhorov says that the five main operators of small-format coffee shops occupy 20% of the market. He said consolidation could help players achieve economies of scale and improve manageability. But, Mr. Prokhorov adds, a decrease in competition may affect prices and quality of services.

Daria Andrianova