“Doubleby” formats coffee – Newspaper Kommersant No. 212 (7413) dated 11/16/2022

Against the backdrop of a high level of competition among coffee houses in Russian megacities, chains are looking for ways to develop in small towns. Thus, the Doubleby network began to develop a new format for take away coffee houses outside of Moscow and St. Petersburg. But the new network may face the usual difficulties for all coffee houses now – supply disruptions and higher prices for raw materials, experts warn.

The fact that “Doubleby” begins to develop a new format of take away coffee houses “Doubleby Express”, “Kommersant” was told in the company. The company opened the first two outlets in Tver. In 2023, the company plans to open up to 30 DoubleBy Express coffee shops, including under a franchise program, in cities with a population of over 300,000 people closest to Moscow and St. Petersburg. “We are interested in entering the regions with a new format in order to fill a vacant niche,” says Anton Poturaev, head of the Doubleby Express project.

The Doubleby network was founded in 2012 and has more than 70 outlets in Russia. The format, new for the network, implies a “distribution window” or premises up to 20 sq. m. m with a minimum landing. Coffee houses “Doubleby Express” are equipped with super-automatic coffee machines that grind coffee and dispense the finished drink at the touch of a button. A new menu will be developed for coffee houses, the average bill will be 180–250 rubles. According to Mikhail Burmistrov, General Director of Infoline-Analytics, for network partners, investments in opening one coffee shop without a lump-sum fee can range from 500 thousand to 1.5 million rubles.

Another coffee shop chain, Surf Coffee, also entered the new Novosibirsk market at the beginning of 2022, says Irina Kozina, director of street retail at NF Group. According to her, Skuratov Сoffee and ABC Coffee Roasters are actively developing in the regions.

Franshiza.ru expert Anna Rozhdestvenskaya calls the take away format promising for development. However, the expert notes the high level of competition among franchises in this market. Sergey Rumyantsev, owner of One Group (One Price Coffee and One Bucks Coffee chains), also says that the segment of small format coffee houses is the most competitive today in terms of premises suitable for rent.

Mikhail Burmistrov considers it logical for DoubleBy to test the new format in Tver, where the income level of the population differs from million-plus cities. The choice of Tver as the first city for the new format is due to the high tourist activity in the city, as well as its proximity to Moscow and St. Petersburg, where the Doubleby brand is most famous, the network explains.

Anna Rozhdestvenskaya notes that the demand for franchises for coffee houses today is concentrated in cities with a population of 500 thousand people. One Group’s experience shows that in cities in the south of the country, the opening of new coffee houses is more successful than, for example, in the center, in the north of Russia and the Volga region, says Mr. Rumyantsev.

In general, the catering industry in Russia has faced a number of difficulties this year. She feels the consequences of the mobilization, emigration of part of the solvent population, the decline in the income of Russians, Mr. Burmistrov notes. The crisis is hardest hit by coffee shops operating in the middle price segment and above, Sergey Rumyantsev adds.

In addition, this year the owners of coffee shops faced supply interruptions and rising prices for raw materials: alternative milk, coffee beans, syrups, paper cups, as well as equipment, Ms. Kozina notes. For example, the expert says, coffee houses replace alternative milk of Western brands with local brands, there are also examples of coffee shops switching to products of Belarusian and Russian production.

Alina Savitskaya