Limassol Municipality has announced the results of the tender for the lease of the popular seaside café Thalassaki, located on the Akti Olympion seafront. The tender was won by Ktima Dimosthenous, which offered €796,260 for a five-year lease.
This corresponds to a monthly rent of €13,271. Under the terms of the agreement, the lease may be extended for another five years, with the rent increasing by 6%. The decision was made by the Limassol Municipal Council, acting as the tender committee. The new operator must now prepare the premises for opening as quickly as possible and bring one of the city's best-known cafés back into operation.
Why the Highest Bid Was Rejected
The highest bid was submitted by Kaspinas Group — €1.26 million for five years, or €21,000 per month. The difference between the winning and rejected bids therefore amounted to €7,729 per month, or €463,740 over the entire lease period. However, the winner was determined by more than just the amount offered. During the evaluation process, the tender committee found that the Kaspinas Group bid did not meet the mandatory tender requirements. In particular, the company failed to demonstrate the required experience in managing food and beverage establishments with the specified turnover and did not provide some of the mandatory documents.
For this reason, the bid was declared invalid and excluded from the tender. A similar decision was made regarding several other participants whose documents did not comply with the requirements of the procedure. This practice is in line with Cyprus public procurement legislation, under which compliance with qualification requirements is a mandatory condition for participation, regardless of the size of the financial offer.
Café to Maintain Affordable Prices
One of the conditions of the tender was to maintain affordable prices for residents and tourists. The municipality has set maximum prices for a number of popular drinks, which the new operator will not be allowed to exceed. The price caps will be:
- Cypriot coffee — €1.50;
- frappé and Nescafé — €2;
- Freddo Espresso — €3;
- tea — €2;
- Cypriot canned juice — €1.50;
- beer (can) — €3;
- local wine — €5;
- 500 ml water — €1.
This approach will help preserve Thalassaki's status as an affordable city café accessible to a wide range of visitors.
When Will the Café Reopen?
Thalassaki has been closed since mid-February 2026. Following the expiry of the previous lease agreement, serious financial disagreements arose between the municipality and the former operator, which had to be resolved through the courts. The premises were only vacated after the legal proceedings were completed. The tender for the right to operate the café was announced in spring 2026. Applications closed on June 19, 2026, through the electronic public procurement system. A total of seven bids were submitted by companies and private entrepreneurs.
The new tenant will have to carry out the necessary preparatory work and reopen the café to visitors as soon as possible. Thalassaki is considered one of the most recognisable establishments on the Limassol seafront. It opened following the major reconstruction of Akti Olympion around 25 years ago and became a favourite meeting place for both city residents and tourists. Its reopening will be an important event for the city's seafront, which remains one of Limassol's most visited public areas and continues to develop actively as a centre for recreation, sport and tourism.