Five Guys, Wendy's and more: these new brands are entering the Czech market

The Czech Republic is increasingly becoming a hotspot for international brands looking to expand their reach. Following a positive shift in market sentiment post-inflation crisis, several global chains are gearing up to make their debut in the country.

As local consumers anticipate new offerings, the influx of foreign brands promises not only increased competition but also enticing marketing strategies, which can include significant discounts upon entering the market.

Among the most eagerly awaited arrivals is the American fast-food chain Five Guys, known for its gourmet burgers. Set to open in the renovated Máj department store on Národní Street in Prague this fall (exact date still TBA), Five Guys provides a higher-end burger experience compared to existing competitors like McDonald's and Burger King.

The entry of Five Guys reflects a broader trend in the fast-food sector, which also saw Popeyes open at the end of last year. Wendy's, the third-largest burger chain globally, is also set come to Czechia in 2025. Wendy's plans to establish a foothold in the Czech market with up to 50 locations by the end of next year, though the location of their first Czech branch is still unknown.

In addition to Wendy's, Rave Restaurant Group took part in an event at the U.S. Embassy in Prague earlier this year looking for potential franchisees in the Czech Republic. The company operates the American brands Pie Five and Pizza Inn.

Not all new fast food entrants are American. A recent addition to the local scene is Lviv Croissants, a Ukrainian chain that specializes in both sweet and savory croissants. With 178 locations in Ukraine and a recent foray into Poland, Lviv Croissants opened its first Czech outlet in Prague's Palladium shopping center earlier this month.

In addition to the fast-food sector, the Czech market is also set to welcome discount retailers. Woolworth, a German chain that offers affordable clothing, accessories, and home decor, is planning to enter the Czech market by the end of 2025. Currently, the chain is negotiating leases with property managers and aims to replicate its success in Germany, where it has rapidly expanded to over 700 stores.

Another retailer on the horizon is Müller, a well-known German drugstore chain. While it plans to first establish itself in Slovakia, it has expressed interest in entering the Czech market as well, where it will compete with established players such as Teta, Rossmann, and dm-drogerie markt.

The Polish discount chain Dealz, which is owned by the same group as Pepco, is also rumored to be eyeing the Czech market. Although the company has not officially announced the move, its current signage in Poland hints at potential expansion into Slovakia and the Czech Republic.

These new players will join a rapidly-expanding discount retail scene in Czechia that has seen international brands like Primark, HalfPrice, TEDi, and others expand into the country in recent years.

The Czech Republic is not just attracting fast-food and discount retailers; luxury brands are also keen to establish a presence. Swiss watchmaker Tudor, known for its robust designs and professional appeal, is set to open a store in Prague's historic Old Town.

Bath & Body Works, a well-established American cosmetics brand, is also planning to expand its operations in the Czech Republic. Having launched a Czech version of its online store, the brand is expected to open physical locations in the coming year.

Other brands that have recently entered the Czech market with plans for expansion include lingerie retailer Victoria's Secret, which now has two locations at Prague Airport and the Chodov Shopping Center, shoe specialist Jimmy Choo, and Slovak bookstore chain Martinus.

The enthusiasm surrounding these new entrants stems from a belief in the Czech Republic's potential as a lucrative market. Czech residents can expect an even broader array of retail options in the near future, while increased competition can also have a positive impact on consumer prices.