Founded by Radu Savopol and Lucian Bădilă in 2015, 5 to go is one of Eastern Europe’s largest branded coffee chains with over 600 outlets in Romania and a presence in Hungary, Bulgaria and Moldova. Michael Lyons caught up with Savopol to find out how the value-focused brand continues to balance affordability with rising costs – and what lies ahead following major new investment
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5 to go co-founders, Radu Savopol and Lucian Bădilă | Photo credit: 5 to go
1. How does 5 to go keep prices low amid high inflation and rising coffee prices?
The unique concept of fixed pricing is what inspired us when we created this business. Our goal is making good coffee accessible every day at the best price. For nearly three years after our launch in January 2015, we operated with a single price, 5 lei ($1.09), for all products which was very well received by coffee lovers. Of course, after a few years, we had to shift to multiples of 5 (5 lei, 10 lei, 15 lei), and the most difficult decision to make was when we had to deviate from this pricing model to adapt to the new economic reality.
Pricing adjustments became inevitable as products, like coffee and milk, hit the limit of profitability while energy, rental costs and VAT all increased. Despite these challenges, the core of our business remains anchored in the number 5, as we still offer espressos and americanos for 5 lei. Even in the face of global inflation and rising prices, we continue to make every effort to keep our pricing affordable and competitive while upholding all the other 5 to go values, like high standards, quality taste and variety of product.
2. How has the Romanian coffee shop market evolved in recent years, and what dynamics and consumer trends are set to shape it in 2025?
The coffee market and consumption trends in Romania have undergone significant changes. The specialty coffee landscape has become more dynamic, with growing demand for high-quality products, while at the same time many consumers are seeking affordable options at competitive prices, along with a variety of plant-based and other healthy alternatives. Furthermore, the younger generation no longer views espresso as the to-go coffee choice. For them, the role of coffee has shifted – it’s not just about the coffee itself, it’s about the experience, textures and flavours – and we do our best to keep up.
Local coffee shops are widespread in Romania, although international coffee chains, niche players and independent cafés continue to emerge. We see so many openings and closures each year, with many businesses struggling due to a lack of a solid concept and unstable market presence, which impacts the overall perception of the industry. However, 5 to go stands as the undisputed leader in the Romanian coffee market, and we have ambitious expansion plans for the coming years.
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Affordable beverages and pop-art branding at 5 to go | Photo credit: 5 to go
3. 5 to go recently sold a 60% majority stake to INVENIO and ACP. What will the new investment enable you to achieve?
After 10 years on the market, selling a majority stake was a necessary strategic step for our development, including the international expansion we have planned for the coming years.
After sitting at the table with several investment funds during 2024, we chose powerful investors with shared values, perspectives and objectives:
the Polish fund ACP and Bulgarian fund Invenio Partners. We (Savopol and Bădilă) have become minority shareholders with a combined 25% of shares, but will continue to be just as involved in the business as we were before. This transaction is a growth opportunity for 5 to go, and we plan on conquering new markets in Europe and becoming one of the most relevant players in the industry.
This transaction also serves as a powerful example for other companies in Romania, demonstrating that it is possible to grow, create value and achieve success, even in challenging or competitive markets.
“The younger generation no longer views espresso as the to-go coffee choice”
4. Do you see 5 to go developing into a pan-European coffee chain?
While our immediate focus is on consolidating our current markets, we are strategically planning for expanded European reach. We are considering countries such as Ireland, Spain, and Germany. The large Romanian communities in these regions would be a key advantage, as they are already familiar with our brand, and we can also better adapt to their preferences. However, there are many other important factors to consider when entering a new market and it is difficult to predict the extent to which a particular country will be favourable for this type of business in the long term.
In Moldova, we see many areas of potential. First and foremost, Moldova currently lacks the presence of international coffee chains and 5 to was the first one to open there. This gives us a unique opportunity to be pioneers in shaping the market. We identified a growing demand for quality products, especially in the food and beverage sector, and there’s significant room for growth and establishing a strong brand presence. Also, there are many cultural similarities with Romania in Moldova and we don’t have the language barrier, proximity being an additional important factor.
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Interior of 5 to go’s first flagship store in Braşov, Romania | Photo credit: 5 to go
5. What’s driving growth for 5 to go?
The retail division has made significant strides over the past year and now accounts for approximately 4% of group turnover. Expansion in this segment will continue throughout 2025, and we anticipate doubling revenue from nearly €3m ($3.1m) in 2024. Our presence in retail is extremely valuable as it provides us with the opportunity to reach a new audience who may discover our brand and potentially become loyal customers in our cafés. Our RTD products and syrups have been very well received by the public and we are aligning with international trends and following the strategies of key players in this sector. Our goal for this year is to secure our first listings in regional retail.
I see us growing our footprint and consolidating our position as a leader in the European coffee market. We have already expanded to 600 locations across 150 cities in Romania, and we expect to surpass 1,000 locations in Romania and 250 internationally, as well as secure a significant market share in the retail sector. Back in 2015 I couldn’t have imagined the extraordinary results we have today, so for the future, we will stick to the same winning formula.
This article was first published in Issue 24 of 5THWAVE magazine.
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