Kari Salmela (Hesburger): We aim to open 10 new restaurants nationwide in the first year, with an investment of more than EUR 8 million

Miruna Macsim 19/07/2024 | 11:04

Hesburger, the largest quick service restaurant chain in Finland and the Baltic countries, and one of the best known in Europe, announces the entry on the Romanian market and the opening of its first restaurant in Râmnicu Vâlcea. With an investment of EUR 300,000 and an area of 80 square meters, the Hesburger restaurant is located on the second floor of the Shopping City Râmnicu Vâlcea Mall, in the food court area. With the opening of this new location, 30 new jobs have been created.  BR sat down with Kari Salmela, CEO Hesburger, and found out more about the company’s plans in Romania and how he sees the local market and the competition.

By Romanita Oprea

 

Why did you choose to open now your first restaurant in Romania?

We have been mainly operating in Finland and Baltic countries, where we have come to the point where we have already covered the needs. For this reason, we have been investigating new markets, like Bulgaria and Romania. We decided to enter the Romanian market after a detailed analysis of the local market, and we believe in the development potential here. Now, when we have been open forabout 1 month, we are still happy. We have a solid experience of expansion in the region, especially in the Baltic countries and Bulgaria. So, we feel that we have made the right decision.

Why in Râmnicu Vâlcea first? 

When we enter a new country, we don’t have any desire to go to any certain city. We are looking location by location and if we feel that we find something good, like we found in Râmnicu Vâlcea, we are ready start, what we also did now. We are currently in discussions for new locations in various cities in Romania, including Bucharest, and we believe the opening in Bucharest will happen latest next year.

How would you characterize the Romania fast-food industry?

We feel that that the Romanian fast-food culture is relatively young, with limited competition in certain areas. However, we have observed a continuous increase in competitive pressure as more international chains enter the market. Consequently, we anticipate that the competition will become significantly more challenging in the coming years.

What do you believe to be your main challenges and how do you intend to surpass them?

Our primary challenge in the near future will be to increase brand awareness. This will require time and strategic marketing efforts. However, I am confident that once customers have the opportunity to experience what Hesburger has to offer, they will appreciate the quality and taste of our products.

What is your plan for Romania in 2024? What are your main goals?

We aim to open 10 new Hesburger restaurants nationwide in the first year, with an investment of more than EUR 8 million. We are currently investigating new locations. And we believe that, by the end of this year, 4 restaurants will be opening and next 6 will be opened until summer of 2025, if everything will go as we have planned.

What do you expect from your first restaurant in the first year?

We anticipate that as people begin to visit us and become aware of our presence in Râmnicu Vâlcea, they will become more familiar with and appreciative of our products and their taste.

What do you consider to be your main competition? What do you offer differently?

Hesburger products are known for their taste, based on Hesburger sauces, created according to original recipes and produced in its own factories in Finland and Lithuania, and the fact that 100% beef is used in the burger patties.Every restaurant selling food within our price range is, to some extent, our competitor. We believe that Hesburger products taste good, and we also give good value for the money.

How are you promoting your first launch in Romania?

We chose the shopping center because it attracts a high volume of visitors. Our primary strategy is to advertise within the shopping center to reach its visitors and offer them a variety of tasty food options. Additionally, we also advertise on social media to broaden our reach and we work together with local media outlets to announce the openings in each city.

What has been the public’s reaction so far?

Our sales have met and even exceeded expectations, and we have already cultivated a loyal customer base that visits us repeatedly. Based on this, we believe everything is progressing well.

What are your brand’s main values and how do you nourish them?

Hesburger is the largest quick service restaurant chain in Finland and the Baltic countries, and one of the best known in Europe. We are a family company, founded by my father and mother. So, we try to create a family feeling within our company, where everybody would have a nice atmosphere, including our clients and workers.

Are there any products you will create only for Romania? Please explain.

This may happen in the future. For now, we aim to make sure that our clients become familiar with our current offerings. In a few years, we hope to develop products tailored specifically to the Romanian market.

Extra info

The Finnish company, founded by Heikki Salmela with his wife Kirsti Salmela, started its fast-food business in 1966 in the small town of Naantali. A family business with a history of over 50 years, Hesburger currently operates in 9 countries and has over 470 restaurants. Over the years, Hesburger has expanded its restaurant chain internationally and now has 272 locations in Finland, 60 in Lithuania, 51 in Estonia and Latvia, 29 in Bulgaria, 7 in Ukraine, 2 in Germany and one in Poland. In 2023, the sales turnover for all Hesburger restaurants in Finland was EUR 286 million and for those outside Finland it was EUR 172 million. Hesburger employs more than 6,000 people in Finland only, and internationally the total number of employees exceeds 8,700.

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