Shift in Balance in Turkey’s Coffee Sector: Small Businesses Losing Ground to Large Chains
Turkey' s food and beverage sector has undergone a remarkable transformation in recent years, characterised by a significant increase in the number of businesses.
However, this growth masks a vital change in economic dynamics, where small, independent operators are increasingly losing ground to large, chain-run enterprises, particularly within the coffee segment.
This shift has far-reaching consequences for the labour market and the country’s business structure.
Between 2010 and 2025, the number of registered food and beverage businesses in Turkey increased by a massive 154 per cent, reaching a total of 158,725 establishments.
A particularly sharp increase was visible in Istanbul, where new registrations for cafés and cafeterias rose by 293 per cent over a six-year period within the same timeframe.
This expansion indicates a booming industry, but the statistics also reveal a deeper structural shift. The changes in the industry have had a direct impact on the labour market.
Small businesses, which have traditionally been a cornerstone of Turkish employment, have seen their share of jobs reduced markedly.
Their share fell from 63.2 per cent to 48.7 per cent.
In parallel, large enterprises and chains have significantly strengthened their position, with an increase in their share of employment from 10 per cent to 16.8 per cent during the same period.
This highlights a trend of consolidation where larger players are taking an increasingly larger slice of the market share and employment.
This development raises questions about the future of small and medium-sized enterprises in Turkey, which are often engines of local innovation and employment. While larger chains can offer economies of scale and a more standardised experience, the loss of diversity among small businesses could affect the local business community and consumer choice.
For tourists, this may mean a gradual shift from unique, local café experiences to a more international and chain-oriented offering, although this is not explicitly stated in the source.
In the long term, such consolidation could potentially affect pricing and competition within the sector.
The development leading up to 2025 indicates a clear trend towards a more centralised food and beverage sector, especially driven by growth in urban centres like Istanbul.
Authorities and trade organisations may need to consider measures to support small businesses to maintain a balanced and diverse market.
This is crucial to ensure that growth benefits all parts of the economy and to preserve the local character that is so vital to Turkey' s tourism and cultural identity.
Source: Haberglobal
