The chain of City Grill restaurants and City Cafe coffee shops is going to expand this year outside the capital city in a franchise system, which is easier to manage than direct investments, says Dragos Petrescu, the general manager and majority shareholder in the chain.
Dragos Petrescu, 35, is now developing the operations of Trotter Prim, a company operating the City Grill restaurant chain and City Cafe coffee shops, after having exited La Mama restaurant chain business last year.
"We do not consider it is efficient to operate restaurants outside the capital city through direct investments, following the principle that franchisees can use their local relationships in managing the business and there will be greater involvement," says Dragos Petrescu. A business is better controlled, he says, when it is managed directly, and not by delegating managers for it.
Trotter Prim company, founded by Petrescu, currently operates five City Grill restaurants and four City Cafe coffee shops, all located in the capital city.
In Bucharest, four of the five restaurants and a coffee shop are direct investments, while the rest of locations are operated in a franchise system.
Investments per outlet range between 200,000 and 450,000 euros, depending on the area and location. In case an outlet is operated in a franchise system, the company owning the brand in its portfolio leaves investments to the franchisee. The City Grill and City Cafe chains will be expanded outside the capital city in a franchise system only. Another outlet will be opened in September in Constanta, in the same franchise system.
The company owns restaurants or coffee shops in centres such as Feeria Complex, Oracle Tour, America House or Baneasa Business Center.
The company has also recently taken over the well-known Bucharest restaurant Caru' cu Bere, located in Lipscani area, wherein it will make about 1.5 million euro investments.
Trotter Prim last year posted revenues worth two million euros, with the budget for this year stipulating three times higher turnover.
Trotter Prim will operate a network of eleven outlets by yearend, of which seven restaurants, including six City Grill ones and Caru' cu Bere and four City Cafe coffee shops.
The coffee shop segment has been highly appealing to investors lately, with international brands such as Starbucks or Coffee Heaven announcing their intention to enter the domestic market. Trotter Prim is 87% controlled by the Petrescus and the rest of stock is owned by the company's management. The main competitors of City Grill are outlets such as Tratoria Il Calcio or Ruby Tuesday, and City Cafe is rivalled by names such as Turabo Cafe, Gloria Jean or Centro.
Trotter Prim
Operates the City Grill restaurant chain and the City Cafe coffee shop chain
Will expand the two chains outside the capital city through a franchise system this year, easier to handle than direct investments
Currently operates 5 City Grill restaurants and four City Cafe coffee shops, all located in Bucharest
Has also recently taken over the well-known Caru' cu Bere restaurant in Lipscani area
Posted 2m-euro revenues last year, expects them to triple.
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