Successful restaurant business during the war in Ukraine is a reality. One of the most famous chefs and restaurateurs, Yevhen Klopotenko, proves this with his own example. As part of a special project by Komersant ukrainskyi calledWar & Food: Challenges and Solutions for the Restaurant Business, he shared his experience. Read about why it is worth taking risks, whether it is appropriate to bet on events, how to increase the profitability of your establishment, and finally, what beetroot has to do with it in our exclusive interview.
Your restaurant business grew 6 times in the second year of the war, which is hardly a rule. It is rather a big exception. What is more important in this success: your recognition or non-standard solutions? And what kind of solutions are we talking about?
Before the full-scale invasion, my business partner Inna Popereshnyuk and I had one restaurant and two dark kitsch cafes. Over the past two years, we have managed to grow six times. This is because at some point we were not afraid to take a risk. For me, this is a typical entrepreneurial decision. For example, you have UAH 5 million. You can worry that a rocket will come tomorrow and you will be gone, and neither you nor the money. Or you can take a risk and invest this money in your favourite business. That’s what we did.
However, it is important to understand that more venues does not always mean more profit . First of all, it just means more working capital. They allow us to pay taxes, create jobs, and fulfil our social mission. It is also our responsibility to the state.
As for the emotionality of such decisions, I always believe that business should do something good for people and the world. Inna and I show our goodness through food. We want people not only in Ukraine but also in the world to have continuous access to Ukrainian cuisine, our culture and traditions. This is perhaps the most important thing. And this is what inspires us to do more and more.
As for recognition. From my experience, I can say this. If a lot of people know you, it doesn’t mean that they will all come to your restaurant tomorrow. For example, I have a Poltava restaurant in Kyiv on Arsenalna Street. What is the likelihood that it will be visited by people from Ternopil who know me? I mean, my audience is too large and at the same time blurred. If I write a post about Poltava, half a million people will read it. Okay, twenty thousand of them will be Kyiv residents. Another five thousand of them like to go to restaurants. Of these five, perhaps a thousand will want to visit Poltava. But it may take several months for these people to find the time, opportunity, and plan their lives. So, as a result, this post will bring us about two hundred people a month. And this is only one day of the institution’s work. This is just simple maths.
In one of your interviews, you said that the profitability of the Ukrainian cafe Other is 11%, but you had plans to increase it to 14%. How are you looking for ways to increase the profitability of your outlets?
Firstly, we have a small Research and Development department that helps us to implement this. Secondly, we produce some of the products for our dishes ourselves and thus reduce their cost. And thirdly, we achieve this 3% by taking a creative approach to creating and shaping the menu.
It isimportant to analyse the average guest’s bill: what people order and why. And try to reduce the cost of the most popular items. But the most important rule is that the taste of the dishes should become better, not worse. For example, you add 200 grams of beetroot to borscht. To affect profitability, you need to reduce its use to 100 grams. At the same time, do something with the beetroot to make it taste better. For example, bake it in the oven with sugar at 120 degrees for 2.5 hours to caramelise it. This will give it the rich flavour it needs, which means that it will taste the same as 200 grams of regular beetroot in a smaller proportion.
It is in such decisions that the chef’s experience is manifested. We call it culinary magic.
How did the war change the culinary preferences of Ukrainians, and did it?
At the very least, Ukrainians got rid of their inferiority. With the outbreak of full-scale war, people became more interested in their cuisine and let it into their lives. Now there is an understanding that it can be cool, modern, and interesting. That is, Ukrainian dishes have gone beyond “just home cooking”. In fact, we have brought Ukrainian cuisine to the same level as the world cuisine. Previously, most people chose the former between Italian and Ukrainian restaurants, but now they are equivalent establishments.
In addition, Ukrainians are using less foreign products. Firstly, they are more expensive. And secondly, again, the desire to know their own cuisine has worked. Last year, Inna and I also transformed the cuisine of the 100 Years Ago Forward restaurant into 100% Ukrainian. We gave up black pepper, lemon juice, chocolate, and agar agar. We do not use products that are imported from abroad in winter, such as zucchini or aubergines.
I also noticed that people started to eat more ordinary and simple food. With the full-scale invasion, the word “trend” has disappeared. We used to focus on popular products abroad and passionately bring them to Ukraine. For example, chia, quinoa, organic wine, matcha with vegetable milk. Now this trend has declined.
During the war, the vast majority of Ukrainian businesses faced the problem of the outflow of skilled personnel. What is your experience in dealing with this issue?
This is not related to the war. In fact, this is a global problem. The restaurant business is not always sustainable, because people get very little for a very large amount of work. And it is precisely because of this problem that one of the world’s best restaurants, Noma in Copenhagen, is closing. So I wouldn’t say that anything has changed. There were not enough people and every year there are fewer and fewer of them.
I am trying to overcome this problem by creating an 8-hour working schedule in my restaurants. This way, people stay working. After all, they get the same salary as for a 12-hour working day. They also have more time to relax and live their own lives. It is important for me that the team feels like normal people, not zombies. In addition, this solution allows us to retain the flow of personnel.
You once mentioned event organisation as one of the areas of business development. In times of war, is this area still relevant? Why do you think so?
Yes, of course. I believe that events, especially social and cultural events, should take place even during the war. After all, it’s not so much about entertainment as about bringing people together around important topics. And also about helping the armed forces. Since part of the profits from the events are transferred to charitable foundations. And besides, events of this format are an opportunity to be in the circle of your people, to feel each other’s support and unity.
My business strategy for 2024 states that 3-5% of revenue should come from events. My team and I will continue to bring Ukrainian culture and traditions to the masses. We are planning a number of events for Maslenitsa, Ivan Kupala, and Malanka. We will also continue to hold events at Zhytniy Market. Of course, this is not our main activity. But this is what we know how to do and what we do well.
Are Western markets a reality for the Ukrainian restaurant business? Which countries can beconsidered a promising destination in this regard?
This is a difficult question. It really depends on the business and its concept. For example, we are considering three countries for scaling. These are the US, the UK and Japan.
I have recently returned from Japan. I noticed that they have very common establishments that serve only one dish. For example, ramen. So why not do the same with Ukrainian borsch? In addition, the Japanese were the first to create instant noodles with a borsch flavour. These people are very open to different cultures. They try to integrate different cuisines of the world into their gastronomy. From what I have learnt, for example, they go to Italy and learn how to cook Neapolitan pizza. They come back and open a pizzeria with a Japanese soul. I think it’s great. I also want to open a chain of Ukrainian restaurants in America. Everything is clear here. If you take over America, you take over the world. Of course, at this stage of human evolution. And I just love Britain. Their fish & chips and our cheburek can complement each other very well. For now, these are our priorities.
Kommersant Ukrainian writes about entrepreneurs from the perspective of their successful or unsuccessful experience, so that others can take useful guidelines for themselves. Therefore, we offer you a short blitz where you choose one of two answers based on your own business experience:
If you are opening a new establishment, in Kyiv or another city, and which one?
A 20 square metre venue in Kyiv. And a larger venue abroad.
If it’s a new establishment in a small town, what kind of cuisine – traditional Ukrainian or European?
First, market analysis, and then a proposal.
If it’s a collaboration, then:
short-term with a specific goal;
long-term, which should become almost a new brand?
Long-term.
If the brand owner is a chef:
heoccasionally cooks himself in his restaurants;
does not cook, but develops the menu and concept personally
He cooks in his restaurants from time to time. But mostly he creates menus, trains chefs and controls the taste of each dish.
And the last thing is honest advice from you: Is it worth starting or developing a restaurant business in Ukraine today? And if so, in which region of the country?
The restaurant business is a very difficult and highly operational thing. If you are in love with this business and can’t help it, then you should open it. If you just want to set up a business for the sake of business, I think now is not the right time. You should wait for the Victory. There are people working in this field now who simply cannot do otherwise. And the region does not matter here.
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