Cofix, the low cost coffee shop

While you may be familiar with the global coffee shop chains Costa Coffee and Starbucks you may not be so familiar with a rapidly growing chain which was first established in Israel, Cofix. The coffee chain operates on a low cost model, where the owner’s visions are:

  • “Inexpensive – A real social revolution! Low prices that make it possible for everyone to drink and enjoy more than once a day, with the same constant price.
  • Quality – Uncompromising quality, some of the best coffee companies, as well as excellent suppliers in all areas.
  • Experience – A coffee shop look with a different feel”. (Cofix, 2017)

    cofix Jerusalem

    Image: Flickr user Dalapo Falola

Cofix branch Israel Coffee shop

Image: Wikipedia

Cofix which was established in Israel in 2013 now has over 160 stores in Israel (Khrennikov, 2016), and has recently entered into the Russia (by establishing a subsidiary Urban Cofix). Cofix has become synonymous with low prices as it operates a low cost model by sacrificing space for volume – 5 shekels in Israel and 50 rubles in Russia – which can be as little as a fifth of thee substantially lower costs for drinking coffee out of the home (Dovrat-Mesertiz, 2015). It has been reported that the owner of Cofix, Avi Katz, is trying to lower the cost of living – not only through these coffee shops but other arms of the company too Super Cofix (supermarket), and Cofix Bar (bar), which operate on a similar model. He explained that “in Russia, it costs 20 roubles to make a cup of coffee at home, while most coffee shops are offering it at about 200 rubbles: this is probably the widest difference in the world” (Jerusalem Post, 2016), and that he is bringing in the new market, so that people who used to drink coffee only at home can afford it in a cafe.” (Khrennikov, 2016).

cofix-2

Image: Flickr user Tyrone

Cofix tends not to have the large spacious coffee shops you would be likely to find with some other competitors, focusing instead its efforts on coffee ‘to go’ with limited seating provided. The company has ambitious expansion plans with a goal of 300 stores in Israel, plans to expand into the UK and Turkey, as well as further expansion in Russia (Khrennikov, 2016).

cofix-1

Image: Flickr user Erin

While the low cost model of coffee shop has clearly been a success in Israel, it has not always been as successful for other companies, while Easy Coffee (coffee house chain established by the  same company that runs EasyJet the low cost airline), Caffix which opened in London on a similar model to Cofix, closed down (Micklethwaite, 2016). According to Jeffrey Young from Allegra Strategies the main reason Caffix failed was that people want more than coffee to go ‘“Coffeehouses are places where people talk, relax and take time out of their busy day….They’ve become almost like our sanctuary. For that, people are happy to pay $5 for a cup of coffee” (Khrennikov, 2016).

As the market for coffee shops develops in each of these countries, it will be interesting to see if this model remains popular. Is cost the key deciding factor for where you buy your coffee, or do you want more than just coffee to go?

References

Advertisements
This entry was posted in Cafe Culture, Russia and tagged , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s