Trdlokafe is a success story in the world with its trdelníky, also called chimney cakes. The company plans to open over 200 new branches this year, hoping that demand from abroad will help the company to reach a billion-crown turnover.With the growing number of new branches, turnover is set to grow. From around $15 million last year, it could surpass $42 million this year.

The company started with an experiment at Christmas markets where they sold chimney cakes. It was failure, customers didn't come to the stall and chimney cakes didn’t sell well. Today, after almost ten years, the company has branches in eight countries and is preparing for further expansion.

Trdlokafe more than doubles in size every year. They had about 70 stores in 2022, last year the number reached about 150 and the plan for 2024 is to expand the branch network to about 400. Spain, Dubai and Qatar all on top of the list. But that’s not all, Trdlokafe, known as Twistcafe in the foreign countries, is about to enter the US market as well. In May, the company is opening a branch in Venice Beach in Los Angeles. The warmer climate allows the company to sell chimney cakes with ice cream all year round, while in the colder climate, chocolate and other variations are the most favorite ones.

The current concept offers investors the option of running their own franchise. The initial investment for the client is based on the location where the branch is to be built. The price starts at around a $110 000 and the most expensive stores, for example in the center of Prague or Los Angeles, cost around $300 000.

The secret of their success lies in the lack of foreign competition. In the Czech Republic, the market is very saturated and the competition is strong. On the other hand, foreign competition is almost nonexistent, giving Trdlokafe the opportunity to snatch the best places for their stores and establish as the leader before the competition arises.

Source: www.seznam.cz

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