Booming Moscow

1. A huge potential in a young and fast growing economy. Nothing is saturated. Each next opening means more sales and market growth.
2. Business is booming by local demand, especially by middle class people asking for every day excitement. And brands are the heroes for excitement – fashion brands, automobile brands, beverage brands, restaurant brands. It’s the believing in a modern and rich lifestyle.
3. There is no family business heritage like in the West. There are no restaurants passed on from one generation to the next. Almost all private enterprises are build from scratch in the last 15 years. Which means: no need to replace Mom and Pop-restaurants – just starting, going and getting big.
4. Quick service is leading, is front-running in chaining. Why? QSR means food for every day part at a price level affordable for the majority. It’s a business with low entry barriers.
5. On the other hand (but not on the list): dozens of prestige projects in the fine dining-area. Extremely expensive, that is the play of rich people – as investors, as hosts, as customers. So we are seeing already very upscale concepts in multi-unit-empires. The Novikov Group as best known example. In Moscow no one, not even celebrity chefs, has the vision to run just one outstanding spot.
6. People in Moscow mainly eat Russian food, like people in Munich mainly eat German food. At the same time, they are open for other food cultures. They are hungry for having Italy or France or Japan around the corner. Moscow has definitely more Sushi bars than any other city in Europe – including London. Big advantage for foreign, but adapted food-ideas.
7. Very best margins, but high risk. Supply still is a big battle. The local government plays a different game than in Switzerland for example – and: if you have bad luck,
8. ‘your contract is toilet paper’.

• More pictures on Moscow
• Country Portrait Russia
• Portrait Moscow
• Interview with Rostislav Ordovsky-Tanaevsky Blanco