Kaffihús Vesturbær Faces Financial Challenges Amidst Rising Income
Kaffihús Vesturbær had a rough 2024 on the books. The café posted a loss of 3 million ISK for the year — a sharp reversal from the 1.6 million ISK profit it recorded in 2023. To put that in perspective, the year before that it only lost 178 thousand ISK.
Operating income did inch upward, rising 6.8 million ISK — a 2.7% increase year-on-year — to reach nearly 256 million ISK. The problem was that costs grew faster. Operating expenses climbed 11.8 million ISK, ultimately exceeding 256 million ISK and wiping out that revenue gain.
EBIT swung from a positive 4.5 million ISK in 2023 to negative half a million ISK in 2024. Net financial expenses added another 2.8 million ISK on top of that.
The biggest cost driver, as it has been, is salaries and employee benefits — 132 million ISK in total, up 7.3% on the prior year. The café’s headcount stayed flat at 13 employees, the same number as in 2023.
At the end of 2024, total assets stood at 34.9 million ISK and equity came in at roughly 6.4 million ISK. The principal shareholder of Kaffihús Vesturbær is Ferdinand ehf., which holds a 50% stake. Other shareholders hold 15% or less, with Gísli Martein Baldursson, Pétur Marteinsson, and Einar Arnar Ólafsson — former CEO of Play — controlling Ferdinand. Einar Örn is the largest individual shareholder, with a 22% indirect stake in the café, while Gísli Marteinn and Pétur each hold a 14% indirect interest.
A Community Hub in the Making
Back when the café was just getting off the ground, co-owner Pétur Marteinsson spoke with After Work, a supplement to the Business Newspaper, just days before Kaffihús Vesturbær opened on October 6, 2014.
“The motivation behind establishing the café came from our desire to fill what we perceived as a gap in the neighborhood,” Marteinsson explained. “We envisioned a welcoming space where locals could gather for breakfast, lunch, or simply enjoy a coffee and a light bite throughout the day.”
Ten years on, and despite the financial headwinds, Kaffihús Vesturbær is still working toward that same original goal: a place people in the neighbourhood actually want to be.
