Russia’s Green House Aims for 100 Stores After Successful 2023

The franchised coffee chain concluded 2023 with a total of 69 stores spread across 12 cities, and it currently has 15 additional sites in the development pipeline.

Green House, headquartered in Krasnoyarsk, is targeting the establishment of 100 stores nationwide within the next six months, building on its remarkable growth and sales achievements in 2023.

Over the 12 months ending December 31, 2023, the franchised coffee chain added 18 net new stores, bringing its total to 69, and an additional 15 are currently in various stages of development. A significant portion of these stores, more than 50, is concentrated in the Siberian city of Krasnoyarsk.

In 2023, Green House reported record annual sales of RUB 584.3 million ($6.5 million), describing the year as one of ‘restructuring’ due to economic disruptions in Russia .

According to a statement from Green House, “2023 became the most successful year for the chain both in terms of revenue and growth of coffee shops. Opening 18 coffee shops in a year is our new record. Revenue exceeding RUB 500 million ($5.6 million) is also a new record. The immediate goal is to have 100 coffee shops in the network.”

Looking ahead, Green House has set a longer-term goal of operating 1,000 franchised stores by 2030, citing the current demand from prospective franchisees as a key factor making this target achievable.

Established in 2012 by entrepreneurs Egor Tokhtobin, Alexey Shu, and Artem Kalchenko, Green House inaugurated its first store in the Kvant shopping center in Krasnoyarsk. The business operates three franchised store formats – a 10sq m coffee bar, a 20-50sq m small format coffee shop, and a larger 50-80sq m outlet.

Despite facing international sanctions over the war in Ukraine, the Russian branded coffee shop market witnessed a 2.2% growth, reaching a total of 4,479 outlets in the 12 months ending March 2023, as per data from the World Coffee Portal.

While major players like Starbucks, McCafé, and Krispy Kreme exited Russia , local businesses later acquired many outlets, loosely rebranding them as Stars Coffee, Vkusno i Tochka (Tasty, and That’s It), and Krunchy Dream, respectively.