Actuality September,14, 2007

At the nearest time democratic chain restaurants are going to become highest ranking at the market. Today they are the owners of 30% of the Moscow market. In Moscow these chains are represented by such home restaurants as “Pyat’ Oborotov”, “Mu-mu”, “Yolki-Palki”, and “Shesh-besh”.  The reason for this is that more and more costumers prefer eating out. And at the same time there are three times less restaurants in Moscow than in Prague and eight times less than in Paris.
In experts’ opinion, cheap restaurants bring as much profits as expensive ones, but chain is always better.
“It is easier to keep up the quality, because we have our own employee training courses, our own foodstuff delivery, and our own School of restaurant business”, told the sales manager of Restaurant Association “Vesta Center International” Sergey Kutko in his interview about profits of chain restaurants.
As restaurateurs say, the market niche of inexpensive restaurants is a real gold-mind. To open a democratic restaurant one needs from 400 to 600 thousand dollars, although the sum of money can be larger (in Moscow). And all the investment will turn round in two or thee years. Average bill in Moscow restaurant is $20, but the restaurateurs are going to make the prices more affordable. It is worth mentioning, that Europe chain restaurants in contrast to Russian ones have less choice of dishes (six times less), more simple interiors and their prices are closer to Mc Donald’s ones. And European variant which is closer to Russian standards belongs to more expensive restaurant with 40 dollars bill per person

According to Consulting Company “Group 9”, there are 150 democratic restaurants in Moscow. Some experts include in this segment few fast-foods like “Teremok” and “Kroshki-Kartoshki”. However, restaurateurs are against this inclusion. According to A. Rozhnikovskiy, the only thing that brings them together with fast-food restaurants is the opportunity to eat for 30 minutes, but quite good home-made food with menu range close to restaurant’s one.
At the same time the Moscow market problems of space lack and high rent are gaining strength.
There is an interesting statistics of restaurant business in Moscow. Few years ago 300 new restaurants were opened per year and almost 250 of them were closed. Today the reasons for this process are the same. According to S. Kut’ko, the leasable area rent fluctuates between $500 – 2500 per square metre; it depends on location and nearest markets and offices. Approximately 30-35% of expenses are spent on construction and ventilating system, because the majority of buildings don’t fit to restaurant business. More then 30% of expenses are spent to buy new equipment. That is why the main success points, such as original idea, the right way of its achievement and choosing of appropriate place are senseless in case of  restaurateur’s inability to pay the space rent.
As for the trends of developing affordable restaurant chain, restaurateurs say that rent and space problems make them to leave for catering trade niche.