Coffee Market Scenario

Caffè Nero chooses Turkey for branch

- Turkish Daily News - The first foreign branch of Caffé Nero, a chain that opened 10 years ago in Britain and reached 330 stores there, has now opened in


- Turkish Daily News -

The first foreign branch of Caffé Nero, a chain that opened 10 years ago in Britain and reached 330 stores there, has now opened in Istanbul’s newest shopping mall, Istinye Park. It aims to be one of the leading coffee chains in the sector.

The first foreign branch of Caffé Nero, a chain that opened 10 years ago in Britain and reached 330 stores there, has now opened in Istanbul’s newest shopping mall, Istinye Park. It aims to be one of the leading coffee chains in the sector.

AYSEGÜL AKYARLI GÜVEN HÜRRIYET

Gerry Ford, the owner of coffee chain Caffé Nero in Britain, opened the first foreign branch of his café in Turkey, in Istanbul's newest shopping mall Istinye Park. Ford was chosen as the Initiator of 2005 by the Financial Times.

“We have created a boutique concept in which when customers order the usual, the coffee that they usually drink is served. We are sure that we will be one of the leading coffee chains in the sector,” he said.

‘There is great potential in Turkey'

Ford said that the coffee chain culture is growing too fast in Turkey: “People show great interest in espresso coffees. This increases the potential of the market. We haven't yet decided how many branches we will open in foreign countries but we don't think of markets where we will open branches below 100.”Ford said their branch in Istinye Park is their first international initiative, and that they also plan to enter some countries in the Middle East and Europe.

‘We have a partner in Turkey'

Ford said that they did not use the franchise system in Turkey:“We became a partner of a company to assume the control. We make investments for each branch. We plan to add new branches to the chain within a short time. Time will show how many new branches we will open. But we have enough money to open many branches,” he said. The company's aim is to be one of the leaders in the market and they will do whatever it needed. He said that they plan to open 10 new Caffé Nero stores around Istanbul. Caffé Nero is on the top of all categories in Britain in coffee store reports that have been issued by Allegra for the last seven years. “We believed in this business. This is a premium coffee chain where customers can give a coffee break while shopping, chat and read papers. They can also eat in our stores,” he said while adding that every kind of meeting such as business meetings and dates are held in coffee chains in Turkey.

More espresso, cheaper price Ford says unlike their rivals they add double measure espresso to coffees. “In spite of this, our prices are 20 percent cheaper than Starbucks prices. This difference draws interest of those who want to taste real coffee. Espresso is prepared at the time of order in Caffé Nero. We don't prepare it in automatic machines. We make traditional Italian style coffee. We also offer many food alternatives and try to create a difference by using organic products,” Ford said.

Caffé Nero grows nine percent each year

Caffé Nero, established in 1997, entered the Biritish coffee chain market simultaneously with Starbucks. It has a 14 percent market share in Britain, and this share increases approximately 1.5 percent every year. “We grow nearly 9 percent annually whereas Starbucks grows 1 percent,” he said.

The British like coffee

Ford said that he grew up traveling between America and Europe: “I studied at Stanford University which is famous for its initiative students. I spent most of my life in France, Italy and Germany. Then I realized that Britain had no places but pubs to have chats with friends. And I decided to open coffee chains for British people who are devoted to tea. But they like coffee now.”

Turkish coffee not sold in Britain

Ford says they have no plans to bring Turkish coffee to their cafes in Britain. “We don't think that there is a big market for Turkish coffee in Britain. But if we see that there is such a demand in new markets, we may bring it to our cafes in these markets,” he said and added: “Turks choose to drink latte, espresso and tea the most. Their choices are not too much different from the ones in Britain. But prices are 10 percent cheaper than in Britain.”

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