ZAGREB (Croatia), April 22 (SeeNews) – Croatian craft burger chain Submarine, which has recently acquired Romanian peer Vivo Fusion Food Bar, expects the overall investments in expansion of their restaurant networks in the two countries to reach 5 million euro ($5.7 million) by the end of 2028, the founder of Submarine said.
“This year and over the next three years, we plan to invest more than 5 million euro ($5.8 million) in the expansion of our portfolio,” Aleksandar Lazinica said in a written interview for SeeNews last week.
Submarine, which is majority owned by Croatian venture capital fund Prosperus Growth and runs two own restaurants in Romania, closed in December a deal for the acquisition of a majority stake Vivo Fusion Food Bar. Details of the transaction were not announced but Lazinica said the Romanian founders of Vivo Fusion Food Bar will stay with their company as minority shareholders.
“The continuity provided by the founders’ continued involvement in the management structure is key,” Lazinica explained.
For now, Submarine and Vivo Fusion Food Bar will continue operating under their separate brands.
Submarine opened its first restaurant in Croatia in 2014. Now it operates 19 locations across the Adriatic country, including branches in Zagreb, Split, Rijeka, Zadar, and Osijek. It is set to open two new locations this year in Pula, on the northern Croatian Adriatic coast, and Varazdin, in the north of the country.
Submarine entered Romania in 2021 with a “dark kitchen” model offering Submarine burgers through a delivery app. Since December 2022 it has opened there its own physical restaurants. It is the first Croatian craft burger chain to expand abroad.
Lazinica said he has been attracted to invest in the Romanian restaurant market due Romania’s impressive culinary culture and relatively high population, as Bucharest alone has over two million residents, and the entire country has around 19 million people with many regional urban centres.
“It is a market that is similar to Croatia culturally and in terms of purchasing power, while Bucharest is a vibrant European capital full of young, hip people looking for new experiences – including taste,” Lazinica said. “Unlike in Croatia, the restaurant business in Romania is not seasonal but operates year-round,” he explained.
Vivo operates six restaurants in Bucharest, two in Iasi, one in Pitesti, and one in Brasov, with plans for further expansion. The expected overall revenue from Submarine’s operations in Croatia and Romania in 2025 is some 30 million euro, to be generated at more than 30 restaurants with 500 employees.
“Southeast Europe is ready for a concept like ours, where certain consumer groups prioritize enjoying high-quality food made from fresh, local ingredients,” Lazinica said. There’s now a growing number of such consumers in the region, particularly among young and trendy individuals in large urban areas, people who enjoy gourmet burgers and the “farm-to-table” concept, those seeking healthier food options free of additives and GMOs, as well as families and tourists as a special customer category, he pointed out.
Because Submarine’s typical customers fit this profile, the Croatian company is particularly interested in acquiring chains that, besides being dedicated to quality, have attractive locations in pedestrian zones of urban centres, Lazinica said. In addition, it is also open to building a concept from scratch, just like it entered on its own the Romanian market.
“It is too early to talk about specific countries where we plan to expand. The only thing I can confirm at this point is that we will not franchise – all restaurants will remain under our direct control, so we can manage product quality more efficiently and further develop our own corporate culture,” the founder of Submarine concluded.
($ = 0.869 euro)