December 2023
Coffee: a return to the taste of normality
The recovery of the coffee sector and prospects for the future
Christmas is approaching, and as many people begin to prepare for the holidays, there is one industry that has begun to see the light at the end of the tunnel. President Guido Sicuro Musetti, shares his vision of a coffee industry that is “almost” returning to pre-pandemic levels. This recovery is having a positive impact on cafes and coffee shops, which are once again becoming attractive places for those wishing to start a new business.
An industry on the upswing
The president points out that in 2023, the public establishment sector, according to company statistics, has regained momentum and is almost back to 2019 levels, before the world changed dramatically due to the pandemic. Despite challenges related to energy costs, rent and staff management, bar owners are trying to make ends meet, encouraged by the recovery.
In the second half of 2023, energy costs declined, mitigating some of the financial pressures. Although new factors have emerged, such as rising interest rates, the coffee industry has successfully dealt with the impact.
After difficult years, interest in public business is reviving. Buying and selling negotiations are increasing, and the value of businesses, which had fallen to almost zero, is slowly rising again. However, to fully understand the extent of this recovery, it is necessary to remember the difficulties of the past three years.
The three-year period 2020-2022 has been particularly challenging for the out-of-home consumption sector, to which the coffee supply chain is closely linked. The pandemic hit this sector hard, causing difficulties in subsequent years as well due to rising energy costs and raw material challenges.
The recovery
The recovery is a hopeful sign for the coffee and bar industry. Musetti’s company serves thousands of establishments including bars, tasting rooms, and restaurants in northern and central Italy. In 2023, it expects to close with consolidated sales of about 41 million euros and Ebitda of 4.6 million euros.
Compared to 2022, turnover growth is 7.5 percent, with a 12 percent increase in the Horeca channel (bars, restaurants, and cafeterias) and a 3.6 percent increase in exports. The turnaround also came from the online market, which recorded a 29 percent increase over the previous year.
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