Greek fast-food chain Gregory's Romania this year plans to expand by opening four new outlets and a franchised outlet, all located in Bucharest. According to the information previously available, investments in an outlet can range somewhere between 60,000 and 140,000 euros.
"We are considering the franchise system as a means of development for the rest of the country, but we want open the first franchised outlet in Bucharest, for reasons related to the operation of a pilot outlet," Cristian Mesaros, the general manager of Gregory's Romania, told ZF.
Gregory's Romania has been present on the Romanian market with two brands, Gregory's, since 2000, and Coffeeright, since 2002. The two brands, together, will be further developed this year. The company's network currently includes 10 outlets in Bucharest, with the last investments in new outlets being made in late 2005.
Expansion on potential markets outside the capital city will start in 2008, according to company representatives.
"By 2008, we predict our company will be operationally and logistically ready to sustain a franchise system nationally and the market of major cities will be ready to integrate the Gregory's & Coffeeright concept," says Mesaros.
Besides investing in the expansion of the network, the company also plans to boost its market share by 15% this year, with the opening of new outlets and owing to rising sales recorded in existing outlets.
At the end of last year, Gregory's Romania generated a turnover worth 11,819,942 RON (3.5 million euros), an increase of 30% against the figure reported for 2005, which stood at 9,142,236 RON (2.7 million euros). According to the company, Coffeeright sales accounted for a significant share of the respective results; however, because of the large investments in the previous years (the amortisation expenses to be precise), there was no accounting profit recorded in 2006, only operating profit.
"Referring to the profit margin, it's difficult to provide a figure, as products have different profit margins, which are highly dependant on the acquisition price of the ingredients," explained Mesaros.
The main rivals of Gregory's are Everest, Spring Time, Bonjour, Snack Attack and McDonald's. Beside these, other international chains have either entered the domestic market recently or announced interest to do so.
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