Someone not so famous once wrote that civilizations needed three things: democracy, good governance and decent coffee. If that is the case then the region can finally consider itself civilized.There is no shortage of cafes in the region. It seems like easy money, but as we find out our feature articles it is a fiercely competitive business. Given that Balts love to spend their money on luxury, don't expect cafes to be closing down any time soon.This week's Industry Insider in about the cafe industry.
RIGA - Judging by the over-flowing cafes of Riga's Old Town, you wouldn't think that the cafe industry was suffering. But it is. Silvija and her husband work in the cafe industry in Imanta, a suburb of Riga. They agree that business has gone down. "Normal little neighborhood cafes are getting less business than five years ago because then they were new, and people were more interested," Silvija said. Silvija went on to say that in the summer, outdoor cafes in Riga's Old Town are still popular and getting more so every year. "It's where people go the most; it's the part of Riga people see when they come here," she said.
Nowadays, with the exception of the touristy outdoor Old Town cafes, cafe-goers are heading up 's up clock towers, up hotels, up anything that stands still long enough to build a cafe on. The exception is Riga's TV tower, the tallest structure in the Baltics, whose cafe is now closed. These new cafes symbolize the country's desire for change, and the money that is making their dreams possible. For a successful cafe, location is the most obvious and important factor. Dzintra Vainsteina, mother of famed Latvian cyclist Romans Vainsteins, opened up a small cafe in Kuldiga and watched it grow. Its location, right next to the widest waterfall in Europe, doesn't hurt business either. "We do very well," she said, looking relaxed as she seamlessly moved about the cafe.
Maris, 24, a student at Riga's Technical University said that when he was younger, cafes were more expensive and fewer. "It was more something special than something everyday. Cafes are everywhere now and they got a bit boring because they're all the same." Back when Internet cafes were popular, the industry saw a bit of a boost in a time when most everything was new. However, Internet cafes in Latvia are on the decline as well. Five years ago, just about anyone could make quite a bit of money on a little basement gaming or Internet salon with coffee, snacks and drinks. Maris laughs about those days. "Sure, you still have Internet cafes, but everyone has a computer now. Why pay for something you could get more conveniently?"
Many bakeries double as cafes, and they all have this to say about chain coffee shops with which they compete: "At least it's not Starbucks." But with the advent of sleek chain cafes with stylish menus, such as Double Coffee and Coffee Nation, many of the smaller cafes have been driven out of business. However, walk into one of the many chain coffee shops around town and the feel is the same. "No atmosphere," said Maris. "If you want to relax and talk to people, we go to a bar or club. There's nothing that fun about sitting on a couch not talking to anyone." If the small cafes are to survive, they have to keep things new and in constant change, much like the country itself.
