La Mama: profit margin above 10%

Trotter Restaurant company, which owns 7 La Mama restaurants and two Cafepedia coffee shops, expects to see a profit margin above 10% by the end of this year. Against this year’s estimated turnover, which is estimated at over 8m euros, income should go beyond 0.8m euros. “By yearend, we expect to reach a turnover worth above 8m euros, approximately 33% higher than last year’s figure amid the opening of some new restaurants, and a profit margin of between 10 and 15%. This year, we plan to open two La Mama restaurants and two Cafepedia coffee shops,” specifies the owner of the two brands, Catalin Mahu. The company last year entered the coffee shop market by opening a shop in Bucharest in the biggest La Mama restaurant of the network, with total investments worth 450,000 euros. “I do not believe there’s real competition on this market. There’s still an insufficient number of coffee shops in Bucharest and the market will allow us to open a great deal of coffee shops from now on, whilst the same situation can be seen in other major cities in Romania,” says Mahu. La Mama could expand its network outside Bucharest through direct investments or via a franchise system.