Industry · municipality
The Café Industry in Lillesand: Current Situation and Future Opportunities
A Detailed Analysis of Companies, Statistics, and Development Trends
Executive Summary
The café industry in Lillesand consists of three registered companies, with combined wage expenses of 14.7 million NOK and an operating profit of 2.2 million NOK. The most significant player is Ikea As Cafe Sørlandet in Kristiansand, which generates 79.7 million NOK in sales and has 37 employees. The industry has experienced variations in sales and number of employees over time, with a significant increase in 2024 and 2025. Compared to the broader restaurant/café group in the municipality, which has 23 companies, the café industry shows a more stable development, although there are some companies with zero sales and employees.
Economic Overview
Sales and employees in the café industry in Lillesand (2016–2025):
| Year | Sales (NOK) | Annual change in sales | Number of employees | Annual change in employees |
|---|---|---|---|---|
| 2016 | 129.3M | - | 78 | - |
| 2017 | 120.1M | -7.1% | 69 | -11.5% |
| 2018 | 111.9M | -6.9% | 51 | -26.1% |
| 2019 | 109.2M | -2.4% | 46 | -9.8% |
| 2020 | 113.9M | +4.3% | 48 | +4.3% |
| 2021 | 84.9M | -25.5% | 36 | -25.0% |
| 2022 | 78.7M | -7.3% | 33 | -8.3% |
| 2023 | 87.3M | +11.0% | 30 | -9.1% |
| 2024 | 85.1M | -2.6% | 49 | +63.3% |
| 2025 | 83.0M | -2.4% | 70 | +42.9% |
Sales experienced a sharp decline in 2021 (-25.5%) before a gradual increase from 2022. The number of employees had a dramatic decline in 2021 (-25.0%) before a strong increase in 2024 (+63.3%) and 2025 (+42.9%).
Companies in the Industry
The following companies are registered in the café industry in Lillesand:
- Ikea As Cafe Sørlandet (Kristiansand) – AS, 37 employees, sales of 79.7 million NOK.
- Fjordkroa Stranda As (Lillesand) – AS, 25 employees, zero sales and operating profit.
- Horisonten Conference Catering & Cafe As (Lillesand) – AS, 15 employees, zero sales and operating profit.
Organizational form statistics:
- All companies are registered as AS (Joint Stock Company), indicating a trend toward larger, formal structures in the industry.
Business Geography
Café activity in Lillesand is distributed across two areas:
- Lillesand (municipality):
- 2 companies, 40 employees, zero sales and operating profit.
- Kristiansand (outside the municipality):
- 1 company (Ikea As Cafe Sørlandet), 37 employees, sales of 79.7 million NOK.
Although Kristiansand does not belong to Lillesand, Ikea As Cafe Sørlandet is an important player in the region. This shows that the café industry in Lillesand has a geographically extended presence, even though most of the activity is in the neighboring municipality.
Business Dynamism
Bankruptcies and operating profit:
- None of the three companies in Lillesand are registered as bankrupt, indicating relative stability in the industry.
- Fjordkroa Stranda As and Horisonten Conference Catering & Cafe As have zero sales and operating profit, which may indicate newly established or weak companies.
- Ikea As Cafe Sørlandet has a high operating profit (2.2 million NOK) and a positive EBITDA (3.0 million NOK), indicating a strong financial position.
Outlook
Outlook for the café industry
The café industry in Lillesand shows a resilient development after a sharp decline in 2021. With an increase in the number of employees (+63.3% in 2024) and a gradual increase in sales (+11.0% in 2023), the data suggests an improvement. This may be due to increased focus on cafés as part of the service and tourism industry in the region. For entrepreneurs, this could be an opportunity, especially in Lillesand, where there is room for the development of new cafés with a focus on local culture and tourism.
Outlook for the Broader Restaurant/Café Sector
The broader restaurant/café sector in Lillesand has 23 companies, with total sales of 111.6 million NOK in 2025 and 189 employees. Compared to the café industry (3 companies, 83.0 million NOK in sales in 2025), the data shows that the restaurant industry has a larger market share and more variation in operating profit. Peer companies in the restaurant industry include:
- Hos Oss Lillesand As (sales: 17.4M NOK, EBITDA: 2.6M NOK)
- Lillesand Pizza As (sales: 7.4M NOK, EBITDA: 604K NOK)
- Nang Thai Takeaway As (sales: 0 NOK, EBITDA: 0 NOK)
Many of these companies have low or negative EBITDA, which may be a challenge for new players. The café industry, with a focus on higher EBITDA (3.0M NOK for Ikea), can be a more attractive sector for entrepreneurs.
Other companies in restaurant / kafé (not in cafe)
| Company | Industry | Address | Sales | Employees | EBITDA |
|---|---|---|---|---|---|
| Hos Oss Lillesand As | restaurant | Havnegata 3, 4790 Lillesand | NOK 17.4M | 36 | NOK 2.6M |
| Lillesand Pizza As | restaurant | Havnegata 1, 4790 Lillesand | NOK 7.4M | 11 | NOK 604.0K |
| Brekkekjærhaven As | restaurant | Morgans vei 4, 4780 Brekkestø | NOK 139.0K | 0 | NOK 12.0K |
| Brygga Kro & Restaurant V/ Monika B. Sæthre | restaurant | v/ Brygga Kro & Restaurant|c/o Skottevik Feriesenter|Fylkesvei 222 8, 4770 Høvåg | NOK 0 | 0 | NOK 0 |
| Brygga Restaurant | restaurant | Skottevik, 4770 Høvåg | NOK 0 | 0 | NOK 0 |
| Dansken Stubberud | restaurant | Strandgata 2, 4790 Lillesand | NOK 0 | 4 | NOK 0 |
| Håbestad Have As | restaurant | Morgans vei 4, 4780 Brekkestø | NOK 0 | 9 | NOK 0 |
| Kebab House Sørlandsparken As | restaurant | c/o Odisho Ishak Ishak|Fagertunveien 72, 4790 Lillesand | NOK 0 | 7 | NOK 0 |
| Matvognen As | restaurant | Senterveien 10, 4790 Lillesand | NOK 0 | 0 | NOK 0 |
| Nang Thai Takeaway As | asian restaurant | Eineråsen 17A, 4790 Lillesand | NOK 0 | 5 | NOK 0 |
| Styvi Kafe Kolding | restaurant | Strandgata 13, 4790 Lillesand | NOK 0 | 0 | NOK 0 |
| Toscana Restaurante Ans | restaurant | Brentemogate 1, 4790 Lillesand | NOK 0 | 0 | NOK 0 |
| Trav & Event As | restaurant | Travparkveien 20, 4636 Kristiansand | NOK 0 | 0 | NOK 0 |
| Tungis Holding As | restaurant | Grøgårdsmyrveien 19, 4790 Lillesand | NOK 0 | 2 | NOK 0 |
| Lillesand Musikkpub Og Restaurant As | restaurant | Vestregate 7, 4790 Lillesand | NOK 203.0K | 0 | NOK -35.0K |
| Geheb Conditori Lillesand As | restaurant | Vestregate 6, 4790 Lillesand | NOK 4.1M | 11 | NOK -50.0K |
| Motell Sørlandet As | restaurant | Vallesverdveien 800, 4790 Lillesand | NOK 0 | 0 | NOK -96.0K |
| Heimdal As | restaurant | c/o Hos oss Lillesand|Havnegata 3, 4790 | NOK 97.0K | 0 | NOK -482.0K |
| Restaurant Sjøbua As | restaurant | Strandgata 8, 4790 Lillesand | NOK 13.9M | 61 | NOK -691.0K |
| Madverket As | restaurant | Storgata 2D, 4790 Lillesand | NOK 11.1M | 0 | NOK -1.1M |
Conclusion
The café industry in Lillesand shows a stable development with potential for growth, especially with a focus on local tourism and service. Although there are some companies with zero sales, there is a clear trend of improvement after 2021. The broader restaurant industry has a larger market share, but the café industry can be a more attractive sector for entrepreneurs due to higher EBITDA and lower bankruptcy risk. SmartGrunder can help entrepreneurs find suitable addresses in Lillesand for café operations, with a focus on natural development opportunities.