Why concentration in the coffee sector is a one-way street
The article discusses the rapid evolution of coffee chains in Greece, indicating the sector's maturation and necessary restructuring amidst high competition.
The coffee industry in Greece has rapidly evolved over the years, transitioning from traditional cafes to modern coffee chains especially after 2002, particularly with the introduction of street coffee and the rise of franchising. This change was accelerated during the economic crisis, which positioned coffee as an affordable daily luxury for consumers and as a desirable low-investment business opportunity. This trend led to a significant increase in the number of coffee shops across the nation, resulting in a saturated market.
As of now, the Greek coffee market has reached a saturation point where the number of sales points is high and often homogenous, putting pressure on businesses to differentiate themselves amid increasing competition. This overabundance has sparked discussions about the industry's maturity, implying that companies must adapt to survive. The competitive landscape is shifting as existing businesses are challenged to innovate and provide unique offerings to attract customers.