The Café Industry in Kristiansand: Current Status and Future Outlook

Overview of the Café Industry in Kristiansand

The café industry in Kristiansand is a small but dynamic sector with 3 registered companies in the municipality. In recent years, the industry has shown strong growth in the number of employees, increasing from 11 in 2016 to 32 in 2024, with a significant increase of 100% between 2021 and 2022. Sales have also shown positive development, increasing from NOK 1.7 million in 2016 to NOK 16.6 million in 2024, followed by a slight decline of 0.5% in 2025. The industry is part of the larger restaurant and café sector in the municipality, which has 248 companies and a more stable economic development.

The café industry in Kristiansand has shown a significant increase in sales and number of employees in recent years. Sales increased by 108% from 2016 to 2017, and continued to grow by 119% in 2017–2018. The most significant increase was between 2021 and 2022, with an increase of 80.2%. The number of employees has also grown significantly, with an increase of 100% between 2021 and 2022. In 2024, the industry had 32 employees and a total sales volume of NOK 16.6 million. The EBITDA margin is at 1%, which shows that the industry has a weak profit margin, but there are no bankruptcy registrations among the registered companies.

In Kristiansand, the following companies are registered in the café industry:

1. D. Coffee As (Rådhusgata 10) – AS organizational form, 19 employees, sales of NOK 12.2 million, EBITDA of NOK 29,000.
2. Sval Gelato Og Kaffe (Markens gate 9) – AS organizational form, 13 employees, sales of NOK 4.7 million, EBITDA of NOK 200,000.
3. Hanne Urdal (Haumyrveien 49) – ENK organizational form, 0 employees, sales of NOK 0.

The two AS companies account for 2 of the 3 companies in the industry, and they have a combined sales volume of NOK 16.9 million. Hanne Urdal has no operating result or employees, which may indicate that the company is in the start-up phase or has another organizational structure.

The café industry in Kristiansand is concentrated in a single area within the municipality. According to the data, there are 3 companies and 32 employees registered in Kristiansand. There is no information about distribution to other city districts or municipalities, which may indicate that the industry is centrally located in the municipality's main urban area. This can be an advantage for companies wishing to utilize a central location and high traffic in the city area.

The café industry in Kristiansand has shown stable development without bankruptcy registrations among the registered companies. The EBITDA margin is at 1%, which shows that the industry has a weak profit margin. This can be a challenge for new companies wishing to establish themselves in the municipality. Nevertheless, the industry has shown a significant increase in the number of employees and sales in recent years, which indicates that there are opportunities for growth and development in the sector.

Future Outlook for the Café Industry

The café industry in Kristiansand has shown positive development in recent years, with increasing sales and number of employees. This indicates that there are opportunities for further growth in the sector. However, it is important to be aware of the weak profit margins, which can be a challenge for new companies. It is also worth noting that sales had a slight decline of 0.5% in 2025, which may indicate economic uncertainty in the sector. For entrepreneurs, it may be advantageous to carefully analyze the market and develop a differentiated approach to ensure success in the municipality.

The broader restaurant and café sector in Kristiansand has 248 companies and a stable economic development. Sales grew by 5.2% from 2016 to 2017, and continued to grow by 9.3% in 2017–2018. The most significant increase was between 2022 and 2023, with an increase of 11.1%. In 2024, the sector had a sales volume of NOK 875.6 million, which shows that the broader sector has a more stable economic development compared to the café industry. EBITDA for companies in the sector is at NOK 14.1 million for Bare Studenthus, which shows that there are opportunities for higher profit margins in the broader sector.

The café industry in Kristiansand is a small but dynamic sector with opportunities for growth and development. The registered companies have shown a positive development in the number of employees and sales in recent years, but it is important to be aware of the weak profit margins. The broader restaurant and café sector in the municipality has a more stable economic development, which can be an advantage for entrepreneurs wishing to establish themselves in the municipality. It is also worth noting that there are opportunities to utilize a central location and high traffic in the city area to ensure success in the sector.