Monday, 4 August
Germany’s fast-growing chain LAP Coffee puts pressure on established local cafes
The formula is simple: small shops, strong branding, and cappuccinos for €2.50. LAP Coffee, a fast-growing startup backed by big-name investors, has opened 13 locations in Berlin in just two years. Its founders—both veterans of the start-up world—say they want to create an environment where “bike couriers, Gen Z students, and local artists meet.” Critics say it’s a Silicon Valley-style land grab hidden behind latte art.
The cafes are compact, seats far and few between, and everything from loyalty points to ordering is digitised. Instead of traditional portafilter coffee machines, the company uses fully automated devices, and only the milk is frothed by hand. On-site events in collaboration with fashion brands and dating apps add to the frenzy. Their pitch is to provide coffee that is good, fast and—most crucially—cheap.
The model is sparking debate in the Berlin coffee scene. Phillip Reichel, a long-time figure in Berlin’s indie coffee scene, says the pricing model undermines the value of the product. “We’ve been trying for years to show how valuable coffee is and why it has its price,” he told rbb. At his Neukölln cafe, Isla Coffee, a cappuccino goes for €3.50—a price he calls fair for everyone involved, from farmers to baristas.
Reichel doesn’t blame customers for chasing cheaper coffee. He blames the scene—himself included—for not communicating the worth behind the beans. “Of course, there are extremes, and cafes and roasteries in Berlin that sell coffee at a price that scares people away. On the other hand, and this is the criticism we have to give ourselves: We failed to explain what’s behind it.”
LAP insists that affordability doesn’t mean cutting corners. They work with Berlin roasters 19grams, known for its commitment to ethical sourcing. How much LAP pays per kilo remains unclear, but buying large volumes tend to be heavily discounted.
The company’s rapid growth is fueled by heavyweight investors like HV Capital, Foodlabas, and Insight Partners from the US. Branches in Munich are already open; Hamburg is next.
Indie cafes, meanwhile, are feeling the heat. “It’s frustrating that so much money is being put into it that none of us can keep up,” says Reichel, who roasts beans by hand. “I think LAP Coffee will become increasingly present in the coming years and will displace many shops.” LAP, for its part, says it isn’t trying to replace neighborhood cafes, but just wants to attract people who rarely buy coffee out.
For Reichel, the rise of LAP is more than a threat, “it’s also a wake-up call. We need to look at how we can make our processes more efficient and digital. And how we can better communicate our values.”
