The Café Industry in Lillehammer: A Detailed Analysis

Other Observations

• Commercial Challenges: The only registered bankruptcy in the industry (Kammerset As in Fåberg) shows that risk factors exist, even though they are not widespread.
• Geographic Focus: Activity is concentrated in the Lillehammer city center, with some development opportunities in Fåberg.
• Organizational Forms: Most companies are AS entities, indicating a certain level of stability and capital strength.
• Causes of Fluctuation: The large variations in sales and number of employees over time can be attributed to both crises (such as the coronavirus pandemic) and local market dynamics.

Sales and Employee Development

• Sales: Total sales for cafés in Lillehammer decreased by 24.8% from 2019 to 2020, but have since stabilized with an increase of 4.7% from 2024 to 2025 (NOK 23.7M).
• Employees: The number of employees dropped sharply by 36.7% from 2019 to 2020, but has since increased by 54.5% from 2023 to 2024, reaching 51 employees in 2024.
• Yearly Development: Sales and number of employees have been unstable over time, with both strong increases and declines during periods such as 2020-2021 and 2022-2023.

Key Players in the Industry

Lillehammer has the following registered cafés:

Organizational Forms:

• AS: 3 companies, 46 employees, total sales of 23.9M NOK.
• ENK: 1 company, 1 employee, no sales or EBITDA.

Geographic Distribution

• Lillehammer: 4 companies, 47 employees, total sales of 23.9M NOK.
• Fåberg: 1 company (Kammerset As), 0 employees, 0 sales.

Concentration: Activity is strongly concentrated in the Lillehammer city center, with some development opportunities in Fåberg. Øverlies Kafe in Storgata 50, however, has no operational data, which may indicate a special situation.

Operational Dynamics and Bankruptcy

• Bankruptcy: One company bankruptcy registered (Kammerset As in Fåberg), with 0 employees and 0 sales.
• Operational Results: Most companies have positive operational results, with EBITDA margins between 6% and 12%.
• Stability: Although there has been a bankruptcy, most companies show good operational economics and stability.

• Market Size: The café industry in Lillehammer has a stable market size with 5 companies and 47 employees.
• Competitiveness: Most companies have good finances, but competition can be intense in the Lillehammer city center.
• Trend: After a sharp decline in 2020, sales and number of employees have stabilized with an increase from 2023 to 2024.
• Recommendation: Entrepreneurs should consider focusing on unique offerings or specializations to stand out in a competitive market environment.

• Total Number of Companies: 64 companies in the restaurant/café industry in Lillehammer, compared to 5 companies in the café sector.
• Sales: Total sales for the restaurant/café industry were NOK 269.4M in 2025, compared to NOK 23.7M for the café industry.
• Employees: 841 employees in the restaurant/café industry in 2026, compared to 47 employees in the café industry.
• Peer Companies: Examples of companies in the broader industry:
• Heim Lillehammer As (restaurant, NOK 28.4M sales, NOK 5.3M EBITDA)
• Egon Lillehammer As (restaurant, NOK 36.6M sales, NOK 4.4M EBITDA)
• Paa Bordet As (restaurant, NOK 26.6M sales, NOK 4.4M EBITDA)

Conclusion: The café industry is part of a larger restaurant/café industry with higher volume, but with a more specialized and less widespread approach.

The café industry in Lillehammer shows a mix of stability and uncertainty. With 5 companies and 47 employees, the market size is relatively small, but most companies have good finances. Outlooks are positive after a sharp decline in 2020, but entrepreneurs should be aware of competition and local market dynamics. SmartGrunder can help entrepreneurs find suitable locations and strategies to establish themselves in this industry in Lillehammer.