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Sfinks to grow through franchises and acquisitions

Opr./edited AZ 10 June 2019
Sfinks to grow through franchises and acquisitions
The Sfinks group is aiming to open 20 restaurants this year

POLAND The Sfinks restaurant network is planning to increase the proportion of franchises that make up the entire chain to more than 60 pct. Its plans for this year also include the acquisition of minority stakes in other companies in the segment and the opening of at least 20 new restaurants.

At the end of Q1 of this year the company managed 97 locations under the franchise model, amounting to 54 pct of its portfolio. The gradual expansion of the number of franchises is one of the strategic goals of the company, which wants 70–90 pct of its locations to operate under this model by 2022. The Piwiarnia Warki chain of pubs taken over at the end of 2017 operates under the model as well as most Fabryka Pizzy restaurants, a new brand developed by Sfinks. The company is also planning to transform its Sphinx restaurant chain in this direction.

“Out of the ten restaurants that generated the highest sales growth in Q1, eight operate as franchises. The best of these had a y-o-y turnover increase of almost 50 pct in Q1, even though as the Sunday retail ban was extended to eight more Sundays. The others also achieved healthy revenue growth. The restaurateurs work for themselves under this system, so they are motivated to run their business in the best way possible. In our experience, this is the most effective model,” explains Sylwester Cacek, the CEO of Sfinks Polska.

In addition to developing its franchise model, Sfinks also plans to add new brands to its portfolio so that it is active in all segments of the gastronomy segment. Acquisitions, including investment in minority share packages, are one of the ways it is planning to achieve this goal. Sfinks wants to buy into two or three such companies this year while developing the chain’s existing brands. A minimum of 20 new restaurants should have been opened by the end this year, six of which are already in operation. The portfolio of the group has already been expanded due to the acquisition of two Meta Seta Galareta bars and one Meta Disco.

At the same time the company is expanding its online ordering service. At the end of Q1, 54 of its restaurants offered a delivery service. The company intends to increase its reach through the introduction of multi-brand kitchens this year. These are to prepare dishes of the various Sphinx brands exclusively for delivery, with the orders to be made through external internet platforms and its own sales channel – the Smacznieiszybko.pl. The company’s growth in such directions is to be supported by the Aperitif online application and a loyalty programme, as well as the new Angus system, which is now in use in all Sfinks chains apart from Piwiarnia Warki. Its introduction to the pub chain will take place this year.

“Some of our strategic projects, such as the IT systems or the development of the delivery channel, have already passed the preparatory phase and we plan to complete their introduction this year. After the current period of financial and organisational investment, we will be able to see the results of all this, which should strengthen our position on the market,” insists Sylwester Cacek.

Sfinks Polska manages 182 eateries across Poland, including the Sphinx restaurant chain, Piwiarnia Warki pubs, Chłopskie Jadło restaurants, Wook and Fabryka Pizzy as well as those operating under the Meta Set Galareta and Meta Disco brands, the Bolek pub in Warsaw and the Lepione & Pieczone restaurant in Łódź.

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