Romania: Caru' cu bere projects 2.5m-euro revenues in 2007

Caru' cu bere restaurant, one of the oldest and best-known locations in the historical centre of Bucharest, with 80% of market share, has posted revenues of 200,000 euros in one month after renovation, that can compare to those of an entire year of activity, according to Ziarul Financiar report of November, 22.

Caru' cu bere turnover was 30% higher than the level projected by the management of Trotter Prim, owner of the beer house.

"In around one month after we reopened the restaurant, we generated turnover worth some 200,000 euros, which makes us consider revising the yearend figure upwards. Before City Grill took it over, Caru' cu bere used to derive turnover worth around 250,000 euros a year," says Daniel Mischie, Caru' cu bere CEO.
Mischie is also the development manager of the City Grill network of restaurants and coffee shops, controlled by the same Trotter Prim company.

The management of the beer house targets turnover of more than 2.5 million euros for 2007.

"The main reasons for the small revenues the restaurant derived several years ago were the low-quality services and food," commented Mischie.

The restaurant, located in Lipscani area, went back in business in early October, in the wake of investments worth 1.5 million euros. The around 500 seats of the restaurant are divided among the beer house, the two cigar lounges and the wine cellar in the basement.

"We invested to redesign the interior, making it look like it did during the interwar period. The furniture and the interior carpentry are part of the original structure of the restaurant dating back to the late 19th century and they were restored as such. To clean up the walls and furniture, we brought a team of professionals who also specialise in monastery restoration," added Mischie.

The location is one of the oldest in Bucharest, having opened in 1892. "Another 500,000 euros will be needed to restore the facade. The project will be carried out together with the Bucharest City Hall," Mischie also stated.

Caru' cu bere management plans to include the beer house in a tourism circuit next year. Starting next year, the management of the restaurant also intends to carry out a project in partnership with Bucharest universities.

The novelty Caru' cu bere proposes is a special boutique area, selling beer mugs, as well as souvenirs, called a gift shop. At present, the gift shop contributes 3% to turnover derived by the beer house, with more than 70% of buyers of its products being foreign customers.

As Caru' cu bere reopened, a number of 130 jobs were also created. Customers targeted by the beer house include persons with medium incomes, as well as persons with above-the-average incomes.

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