Ukrainian businesses that established or expanded operations in Central Europe following Russia’s 2022 invasion are evolving their strategy, Reuters reports. These companies are now shifting focus from refugee customers to local markets while planning further westward expansion.
According to Polish business associations and economists, Ukrainians established one in ten new businesses in Poland during 2024, where the Ukrainian population has grown to over 1.5 million due to the war.
Lviv Croissants exemplifies this expansion trend.
“While the Ukrainian refugee community in Europe is significant, relying solely on this customer base is not a sustainable long-term strategy,” founder Andrii Halytskyi told Reuters. The company operates 12 shops in Poland and opened its first Czech location in October.
The !FEST restaurant group’s Piana Vyshnia (Drunken Cherry) chain has expanded to 15 locations in Poland and nine in other Baltic and eastern European countries. Founder Andrii Khudo told Reuters the company plans to enter Germany, Switzerland, and France in 2025, while relaunching in London.
Other successful expansions include:
- Chornomorka (Czarnomorka) restaurant chain with locations in Poland, Bratislava, and Vienna
- Aroma Kava coffee chain’s growth to 10 Polish locations
- Three Bears’ acquisition of Polish frozen products company Nordis
- MEGOGO’s digital entertainment services expansion into Poland and Romania
Reuters notes that March 2024 Deloitte report estimated that Ukrainian refugees would contribute up to 1.1% to Poland’s GDP in 2023, potentially reaching 1.35% in the longer term.
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- Reuters: Ukrainian corn seed exports to EU surge amid wartime trade shifts
- Ukraine’s exports surge 17.5% year-on-year in August 2024
- West can “easily” afford Ukraine aid to avoid much greater future costs, economist says