Berlin Coffee Chain Attacks Spark Debate on German Entrepreneurship
A series of coordinated attacks targeting a rapidly expanding Berlin coffee chain, LAP Coffee, has ignited a discussion about attitudes toward entrepreneurship and innovation within Germany.
Yesterday, shopfronts of 15 LAP Coffee outlets were vandalized with red paint, with the perpetrators and their motives still unknown. The chain, which aims to disrupt the coffee market with affordable, high-quality beverages, had previously been the subject of an online campaign dubbed “LAP Coffee? Shit!” which accused the company of being “the tech industry’s aggressive attempt to take over another part of our lives” and displacing local, independent cafés. This incident comes as Germany attempts to bolster its position as a global innovation hub.
The attacks drew swift condemnation from the German start-up community. Paula Hübner Wehmeyer, a New York-based venture capital investor, stated the controversy “tells me so much about the German attitude to entrepreneurship” in a LinkedIn video. Others echoed this sentiment, with one Berlin-based founder remarking that “a €2.50 cappuccino is apparently too disruptive for Berlin.” Despite recent growth, Germany still lags behind the US and the UK in venture capital investment; as of late 2024, it had 32 “unicorns” – start-ups valued at over $1 billion – compared to 729 in the US and 313 in China, according to PitchBook data. Dirk Schumacher, chief economist at the development bank KfW, however, noted the German VC market has significantly developed over the last decade, and described the current debate as a “tempest in a teapot.”
Critics of LAP Coffee argue the issue isn’t simply about innovation, but about a business model they perceive as exploitative. Philipp Reichel, founder of a Berlin roastery and independent coffee shop, pointed to similar venture capital-backed chains like Blank Street Coffee and Luckin Coffee, arguing LAP’s approach isn’t novel. LAP co-founder Ralph Hage acknowledged the issue appears unique to Berlin, stating, “We don’t see these issues happening in other cities…Berlin is its own bubble.” The debate also highlights broader challenges faced by German start-ups, including bureaucratic hurdles and high costs, as detailed in reports from the KfW.
Authorities are continuing to investigate the vandalism, and LAP Coffee has stated they are cooperating fully with the police while continuing to expand to other German cities.
