Retail group, X5 is to set up a cafe chain in Russia, according to reports. 

Vkusnaya Kukhnya or ‘Tasty Kitchen’ in English, will be a budget chain of cafes located in Karusel hypermarkets.

The estimated set up cost for each cafe will be between 100,000-200,000 euros.

The chain will start small with three locations in; Moscow, St Petersburg and Nevinnomyssk. The company’s marketing manager, Dagmara Ivanova told RBC that next year expansion plans will be put in place.

With Russia currently going through an economic recession, the appetite for budget alternatives to the likes of Starbucks is high for hard hit consumers.

X5 Retails Group run the retail chains, Pyaterochka and Perekresto. The company is listed n the London Stock Exchange and employs over 100,000 people.

They will be hoping the new cafe chain in Russia will help them regain the top spot in the country, something they lost out to Magnit in 2013.