5 to go targets further expansion in 2024
Image: 5 to go
After opening over 500 coffee shops in Romania in 2023 and recording an increase in sales and turnover, which reached 40 million euros at the end of the year, the 5 to go group is targeting a total of 650 coffee shops and a turnover of 50 million euros for 2024, an increase of 25% compared to 2023.
The evolution of the Romanian brand 5 to go is reflected in both HoReCa and retail markets, with each of these divisions recording spectacular growth over the last year. Although the global context has made 2023 a challenging year in many business areas, including the coffee sector, the 5 to go business has benefited from a winning strategy and has continued to be profitable and have a positive impact in the market through stability, consistency, innovation and constant evolution.
“The results achieved in the last quarter of 2023, when we recorded an increase in turnover of more than 50% compared to the previous year, have exceeded our estimates and have boosted our planning for the next period and the setting of new targets in line with the pace of development we aim to maintain. The year has just started and we already have 25 new location openings and 8 renovations planned for January-February alone. Things are steadily progressing locally, with a new 5 to go location opening in Romania practically every 2 working days. At the same time, we want and believe that we have real chances to move up this year to 7th place in the European ranking of coffee shop chains, up from 9th place where we are now“, said Radu Savopol, co-founder of 5 to go.
The retail division has evolved over the last year, reaching a share of around 4% of the group’s turnover. The recipe for development in this segment consisted in diversifying the portfolio, listing products in the major Romanian networks and a price positioning relevant to the Romanian consumer.
Growth plans will be maintained in 2024, keeping the upward trend of business development. According to current planning, 5 to go will exceed 600 coffee shops, 50% of which are in Bucharest, followed by Brasov (30 cafés) and Cluj (15). If in 2023 the 5 to go map covered 110 cities with at least one coffee shop open, in 2024 the expansion will target at least 40 new cities. Internationally, the plan is to launch on the Slovakian market, reach the ten café milestone in Hungary and implement a pilot project on the Bulgarian market. As for the retail division, new 5 to go branded products are being considered for launch this year.
In 2024, the development directions aim at: improving the average transaction value, which will pass 15 lei in the coming months; increasing traffic in coffee shops and developing private label products dedicated to the retail segment. Strengthening the range and listing in new networks, together with the development of the team managing this retail segment could bring the 5 to go group a 10-fold increase in turnover in this segment over the next 5 years, reaching an estimated potential of €20 million.
Closer to consumers: 5 to go app to be launched in the first half of this year
Part of the strategy to keep up with market trends and customer needs in the digital age, the 5 to go app is 90% ready for launch and will be available this spring to facilitate access to the brand’s universe and positive consumer experiences.
“We want to become more visible to our customers and improve our communication through a common language, and we believe that one of the ways to keep them permanently connected with the brand is an interactive, intuitive and cool app that they can always have at their fingertips, providing them with hot information about 5 to go’s product portfolio and preferred or nearby locations and their schedule, seasonal news or recently opened cafes. In addition, we will have a surprise consumer reward system, which will help us attract new customers and maintain their loyalty in the long term,” explained Lucian Bădilă, co-founder of 5 to go.
The 5 to go brand has invested in communicating with the customers, developing campaigns and offers that meet their needs and desires. This is reflected in the reasons why they choose 5 to go products, with product quality (52%), taste (40%), proximity (38%) and brand preference (37%) ranking highest, according to the latest research by Reveal Marketing Research.