International brands enter the Russian coffee candy market

Russian business consulting website reported on Aug. 21, according to the 2014 Russian public catering chain market research data launched by RBC.research, so far, there are about 790 coffee and confectionery chains and bakeries in Russia, of which more than 60% are in Voronezh, Moscow and St. Petersburg.

The above statistics directly prove that the coffee confectionery shop in Russia is still not saturated. Noting the unlimited development potential of this market, many foreign merchants decided to enter the Russian coffee candy market. So in 2012, the first PAUL and Auntie Anne's coffee confectionery shops were opened in Russia. Today, the two foreign brands have opened 9 and 11 restaurants across Russia, respectively. In 2013 and early 2014, three more international merchants Krispy Kreme, Wetzel's Pretzels and Great american cookeis, which run coffee confectionery and bakeries, entered the Russian market.

So far, these businesses have only opened a few restaurants in Russia. However, despite its late entry into the Russian market, it should not be underestimated. Novikov Group Group, which controls the franchise network of Krispy Kreme in Moscow City and Moscow State, is preparing to open 40 coffee shops in five years. Wetzel's Pretzels, another US brand, looks less ambitious with plans to open eight outlets in the busiest locations in Moscow over the next two years and more than 50 bakeries across Russia under a franchise system. In addition, the company plans to vigorously develop a network of bakery chains in the CIS and Baltic countries.

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