Approximately 200 franchises open in Romania every year, only in the HoReCa sector

Franchwise, the largest franchise consulting company in Romania, estimates that around 150-200 new franchises open in the local HoReCa sector every year. The investment in such franchises starts from EUR 30,000 and can reach over EUR 300,000, depending on the size of the restaurant.

“The minimum investments in the HoReCa sector start from EUR 30,000 – 40,000 for an island franchise from brands like Hello Donuts or from EUR 50,000 – 60,000 in a small location for a brand like Bubble Waffles, for example. If we talk about quick service restaurants (QSR), the required budget starts from EUR 100,000 while for restaurants with larger surfaces, over 250-300 sqm, the required investment is approximately EUR 1,000/sqm, and can reach over EUR 300,000”, said Raluca Voicu, Franchwise Brand Ambassador.

The company’s data shows that the investment’s recovery period is generally between 2.5-3 years for the premium locations, and the break-even point is reached in 2-3 months. However, for good financial management of franchised locations, it is recommended to have a reserve fund that covers 4-6 operational months.

“There are businesses that are booming, such as Ted’s Coffee, Treevi Pizza, Hello Donuts, Leonidas, Simigeriile Petru or Tucano, and that continue to grow by 20-30% from year to year. There are also businesses and chains that have reached maturity or are redefining how to make a better profit”, added Raluca Voicu.

In Romania, in the HoReCa sector, franchises are very visible, both through local businesses that have grown through franchising (SaladBox, Ted’s Coffee, 5 To Go) and through large international brands operated under franchise regimes (McDonald’s, KFC, Starbucks, Pizza Hut, Subway, and various hotel chains).

According to Franchwise, there is at least one point in the life of a business when franchising is considered. The Romanian market, unlike extremely competitive ones such as the UK, continues to mature and still benefits from a great potential for development, with niches still not covered and a clear trend of diversification and consolidation of locally active franchises.

Moreover, many Romanian brands have already expanded into international markets through franchising. Among them is SaladBox, which has managed to cross borders and reach 12 countries on three continents. Another success story is Tucano Coffee, a brand that today is present in 10 countries. At the same time, Mesopotamia expanded to Hungary and Spartan opened a restaurant in Barcelona. French Revolution is also in talks to take its products to Dublin, Ireland. The 5 To Go network has entered the market of Hungary and Slovakia, and Japanos has franchise units in Algeria, Malta, the United Arab Emirates and France.