The Aroma Cafe facts for kids
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| Public services | |
| Industry | Coffeehouse |
| Founded | 1991, in London, England 2000, in Buenos Aires, Argentina |
| Headquarters | Buenos Aires, Argentina |
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Key people
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Sergio Gratton |
| Products | Coffee Tea Pastries |
| Parent | Freddo (a subsidiary of Grupo Pegasus) |
Aroma Cafe is a well-known coffee shop chain. It started in London, England, in 1991. Later, in 2000, it also began operating in Buenos Aires, Argentina.
In 1999, the famous fast-food company McDonald's bought Aroma Cafe. McDonald's helped the chain grow in both the UK and Argentina. However, McDonald's later sold the London Aroma Cafe shops to another coffee company called Caffè Nero in 2002. Caffè Nero then changed the name of these shops to Neros. The Aroma Cafe shops in Argentina were sold in 2004 to Freddo, which is an ice cream chain.
Contents
The Story of Aroma Cafe
How Aroma Cafe Began
Aroma Cafe was started by Michael Zur-Szpiro in 1991. When he was a student in London, he noticed there weren't many cafes like those in Europe. He wanted to create a place that offered simple snacks, tasty coffee, and delicious pastries.
After working as a consultant for many years, Zur-Szpiro decided to make his cafe idea a reality. He visited many sandwich shops and snack bars to learn how they worked. He also talked to business experts, architects, and coffee sellers. He wanted to make sure his new coffee shop would be designed well and offer a great experience.
In 1990, a company called Alan Patricof Associates invested a lot of money to help start Aroma Cafe. Zur-Szpiro also put in some of his own money. He wanted the cafe to feel like a "15-minute holiday in the sun." The first Aroma Cafe opened in December 1990 on Dean Street in London. It had bright yellow and white walls and aquamarine outdoor seats.
Instead of making all its food, Aroma Cafe received fresh deliveries from local bakeries. They brought bagels, croissants, sandwiches, and salads. The cafe quickly became popular and started making a profit just four months after opening.
Growing the Coffee Chain
By 1994, Aroma Cafe had opened its sixth location. The cafes were designed to have a warm, Mediterranean feel, even in the busy city. People liked the design, saying it felt welcoming and comfortable. Around 1995, Aroma Cafe even started providing food for companies like ITN.
In 1995, experts reviewed Aroma Cafe because it wasn't growing as fast as other coffee chains. They found that Aroma was selling too many different products. So, they reduced the number of items from 400 to 120. Aroma Cafe focused on selling both coffee and sandwiches, placing itself between sandwich-focused shops like Pret a Manger and coffee-focused ones like Starbucks.
By 1996, Aroma Cafe was selling over three million cups of coffee each year. It had grown to 11 locations in London, including popular spots like the Southbank Centre and Bond Street. People described Aroma Cafe as an innovative place with a lively atmosphere, playing Caribbean music and featuring bright yellow and orange decor.
McDonald's Takes Over
In 1999, Aroma Cafe had 23 locations and about 300 employees. McDonald's bought Aroma Cafe for a large sum of money. This was a big deal because Aroma was a new company that had grown quickly with help from investors. McDonald's said it would let Aroma Cafe continue to run as a separate brand with its own management team. This was the first time McDonald's had bought a non-American chain to run separately.
However, owning Aroma Cafe became challenging for McDonald's. They had also partnered with Pret a Manger, which also sold sandwiches and coffee. Some people thought Aroma Cafe was no longer needed in McDonald's plans. Also, the UK already had many coffee shops, making it a very competitive market.
Caffè Nero Buys UK Shops
In 2002, Caffè Nero made a deal to buy 26 Aroma Cafe locations in the UK. This purchase significantly increased the number of Caffè Nero shops. Caffè Nero planned to change the name of all these Aroma shops to Neros, as they did not want to use the Aroma name anymore.
By May 2002, Caffè Nero had bought 31 Aroma stores. This made Caffè Nero the third-largest coffee chain in the UK, after Costa and Starbucks. McDonald's lost a lot of money on the sale of Aroma Cafe. They had spent a lot to buy and improve the chain, but they couldn't find a buyer for all 35 Aroma stores.
Aroma Cafe in Argentina
Aroma Cafe also expanded to Argentina in mid-2000. The plan was to open many locations there, but economic problems in the country made it difficult to reach that goal.
On June 7, 2004, McDonald's sold the Aroma Cafe shops in Argentina to Freddo, an ice cream chain. This sale included all six Aroma branches in Argentina. Two of these were in big shopping centers like Galerías Pacífico and Unicenter. After this sale, McDonald's no longer owned any Aroma Cafe chains anywhere in the world.
Later, in 2018, some Aroma Cafe locations in Argentina started to include Freddo ice cream stands. This allowed customers to enjoy both coffee and ice cream in the same place.
See also
- List of coffeehouse chains
