Kifli was unprofitable for a long time, but now it has become a success story

By: Trademagazin Date: 2024. 01. 22. 12:11

In recent years, home delivery of food has become increasingly popular in Hungary, especially as a result of the Covid-19 epidemic. In this area, Kifli.hu, which was launched in 2019 and has been operating with continuously increasing traffic, is featured prominently. However, the company found its way to success with an unusual strategy, and after recording significant losses in 2021 and 2022, it has now successfully reached profitability.

Kifli.hu really came into focus during the Covid-19 epidemic, as it was one of the first companies that helped people with home delivery during the stay-at-home period. The service quickly became popular, and the company emerged as the market leader in Hungarian online retail. Today, more than 7,000 orders are delivered daily, and in the spirit of expansion, they have extended their Budapest delivery area to include Székesfehérvár and Veszprém.

However, success did not come easily, and the head of Kifli.hu, Gabriel Makki, told Telex that they had to make serious investments in the years after the launch. Building the infrastructure, buying cars, creating warehouses and training the staff consumed huge sums of money. However, these investments have now paid off and the company has been profitable since autumn 2023.

Makki pointed out that in the food delivery sector it is not uncommon for companies to remain unprofitable in the long term, as building the infrastructure necessary for efficient operation is a time-consuming and expensive process. However, Kifli.hu has successfully turned to profitability and is now concentrating on market acquisition.