Secrets of success "1 euro bars"
A year ago, an institution was opened on the capital's Khreshchatyk, the lines for which never end. “White Bulk” - this is the name of the favorite of residents and guests of Kiev, who gave a successful start in Ukraine network “1 euro bars”. Restaurateur Dmitry Borisov tells about the business model of institutions of this format, the secrets of success and promotion.
Dmitry, how did the idea of “1 Euro bars” come about? Is this your author’s intention or similar institutions already existed?
The idea of “1 euro bars” is not new. Such institutions have long been working in the United States and Europe, but we were the first to realize this plan in Ukraine. We opened the "White Bulk", in which all dishes and drinks - hot dogs, cider, pies, cordial, oysters - cost 29 hryvnias. Over the year, the idea was transformed and developed, now we have 5 similar formats, the prices in which range from 29 to 79 hryvnias. That is, we are talking more about the price category of 1-3 euros. For this money, you can eat not only a huge shawarma in BPS, but, for example, order a serving of octopus with wine in the Mushlya Bar or tartare with tuna and avocado in the Mushlya Café. We have created a new type of smart casual establishments in Ukraine - with a cool interior and gourmet products, but with prices at which you could only buy a pie in the transition before.
What target audience are institutions of this format designed for? Is there a clear segmentation of “1 euro bars”?
"1 euro bars" are open to absolutely everyone. Our goal was to show people who are used to thinking that oysters and shrimp in institutions is “expensive and not for everyone”, another reality: a world in which a variety of delicious dishes and drinks can be as accessible as possible. In this, in particular, we see our mission to develop gastronomic culture in the country. Of course, young people were the first to “catch up”. White Pouring is an institution about small joys and sins that everyone can afford. Here, the line for hot dogs and cider always turns into a party, and the “White Bulks” in different cities of Ukraine have become the “gathering points” of creative young people. But in reality, the audience is much wider - here you can see parents with children and people of retirement age who come to try their first oysters in life.
Euro-format institutions are a niche that the Dima Borisov Family of Restaurants started in Ukraine. Tell us more about the format of these institutions: what are the approaches to creating a menu, interior decoration, customer service, communication with them, etc.?
Now we have 5 formats. In “White Bulk” people come for hot dogs, oysters and cider. At DOGZ & BURGERZ - for classic and healthy burgers and various snacks. Mushlya Bar offers a very wide range of seafood - from shrimp to lobster. BPSh is white meat, donuts and shawarma, and VarenykyNOW is a modern Ukrainian street food with black dumplings, bacon carpaccio and guinea fowl paste.
All formats combine 4 key principles.
- Firstly, the price is from 1 to 3 euros.
- Secondly, the quality of the products. We do not compromise with a conscience, and even in the democratic segment we cook from the best products, laying a fairly high food cost in the business model.
- Thirdly, speed: any order should be prepared no longer than 5 minutes. The record of "White Bulk" - 50 seconds. Thus, one "White Bulk" can feed about 1,500 guests per day.
- Fourth, in the interior and communications, we always lay a certain wow moment: from recognizable neon decor elements to AR masks and corporate stickers for social networks.
Regarding the marketing strategy: what tools do you use, what do you focus on?
These factors are the basis of our marketing strategy: they create the experience for which thousands of people come to us every day. As for communications, they are a continuation of this strategy. We are as honest and open as possible for everything new. We strongly encourage guests to create custom content, because it is much more effective than traditional advertising messages from brands. We experiment with various tools all the time - we make chat bots and create local content among fans from different cities. We arrange "hot dog days" and release our own newspaper. We put a lot of effort into non-ordinary visual content and make interesting dot-related, related, tangent, projects - for example, Drink & Travel shows about different cities in which “White Bulk” is present. Or staged a “Hot Dog Day” - treated to free hot dogs for a story or a check-in. Almost 1000 guests took part in the action per day.
Dmitry, your establishments are always in line. What is the reason for this demand? What are you doing so that customers are not frightened by standing in them?
You can find out the institution “all for 1 euro” from the “Dima Borisov Family” by characteristic lines. The reason for the rush demand is always the same - this is the best value for money, that is, the emotions that the guest receives. Standing or not standing in line is everyone's personal choice. We issue an order in a few minutes, so that it moves really fast. Moreover, they turned it into part of the brand. We know people who come to stand in line at the “White Bulk”, because in it you can always meet friends or meet new interesting people. This is more than just a line, it is already a kind of community.
How actively is the “1 Euro bars” network developing? Do you work on a franchise?
Today in our network there are 19 establishments of the “1 euro bar” format. In particular, eleven "White Bulks" - in Kiev, Lviv, Odessa, Sumy, Kharkov, Lutsk, Vinnitsa. Four Mushlya Bar, so far only in Kiev, but construction is already underway in other cities. DOGZ & BURGERZ are in Kiev and in the Dnieper. BPSh and VarenykyNOW recently opened in Kiev, but will soon be in other cities.
Outside of Kiev, all our establishments operate on a franchise basis. There are also open ones under the White Bulk franchise and Mushlya Bar in Kiev.
The staff is the face of the establishment. It can work both for business development and cause reputational losses. In addition, many talk about staff turnover in the restaurant sector. Do you feel staff hunger? What are you doing to ensure that the staff is loyal and contributes to the development of the business?
Our team has more than 3,000 people. We have a very strong HR department, transparent and honest relations with all employees, clear procedures and internal processes - we have built a stable corporate system that allows us to scale, be flexible, but adhere to standards.
Dmitry, how do you assess the competitive environment?
Over the year, we tracked the appearance of several dozen establishments of the “1 euro bar” format. Someone copies certain details of our bars, someone - the pricing policy and several key products, someone calculates everything by 90%. This is normal. We are used to being innovative in the market and take this calmly. If the idea is qualitatively rethought, it develops a category and works for everyone's benefit. In general, the creation of institutions of this type is a global trend. If they copy only the “shell” - design, menu, communication, not knowing what values, technologies, processes are behind all this, then such projects simply do not last long, the market eliminates them.
What "pitfalls" have to be circumvented?
When you open a new restaurant, you need to be prepared for the "pitfalls" that will have to be circumvented or removed from your path. There are actually thousands of them, so many establishments close monthly. Anything can become such a stone: from an incorrectly chosen location to a blurry concept. We have certain requirements - for location, partners, ourselves - and a clear understanding of business processes. This allows you to receive planned profits and grow.
“1 euro bars” in numbers
- 21 institutions “Dima Borisov Restaurant Families” work in different cities of Ukraine
- From 500 to 2000 guests visit one establishment daily
- 80% of guests return again
- $ 20,000 - a lump-sum payment and $ 500 per 1 sq. Km. m. - you need to invest so much in the launch of one institution
- 20% – business profitability
- Up to 2 years will be required for return on investment
- More than 3,000 people in the team of the “1 Euro bars” network
