"Today, those who know how to calculate the economy and work with emotions win"

Despite the difficulties in the economy, restaurants and bars are not empty — people still tend to arrange a small holiday after work or at least at the end of the working week. Vasilisa Volkova, co-owner and Chief Operating Officer of the capital's cocktail holding SIDR Group, told Izvestia about the changes currently taking place in the restaurant business and specifically in the bar sector.

— Now many people are talking about a difficult time for the restaurant industry. What's going on with the bars?

— Bars are part of the restaurant industry, so they generally face the same challenges. But there are also some special features. While restaurants continue to actively develop at the expense of large chains, there are few bar holdings on the market, as well as new openings.

At the same time, any crisis is not only difficult, but also an opportunity to find new niches and reach a new level. The market is changing, and it is important to have time to adapt to these changes.

— Is it difficult to manage several conceptually different projects at once?

— There are both pros and cons to this. When we started building the holding company, we were primarily inspired by the creative component. Over more than ten years of working in the industry, we have created over sixteen concepts. Some of them are still working, some have been transformed or have been closed.

Over the years of the holding's existence, we have tried ourselves in a variety of formats. Today, the portfolio still includes those areas in which we are really strong and which are in demand by the market, primarily cocktail bars.

A great advantage for us is that guests can travel between the holding's projects, gain different experiences and get acquainted with different atmospheres. That's why our bar tours are so popular.

On the other hand, managing different concepts requires flexibility. It is impossible to implement a single service standard for all projects, because each concept works with its own audience. Therefore, we create separate service scenarios and the DNA of each establishment, while preserving the common values of CIDER Group: attention to the guest, the ability to hear his requests and give emotions, which many lack today.

— Is there a trend towards reducing alcohol consumption today?

— Yes, and we observe it quite clearly. At the same time, I would not associate it exclusively with the theory of generations.

In my opinion, the reason is rather a general change in lifestyle. People care more about their health, the pace of life is constantly accelerating, new technologies are emerging, and artificial intelligence is changing habitual patterns of behavior. Under such conditions, alcohol consumption is gradually decreasing.

Previously, the average guest's receipt could consist of three cocktails, several shots, one dish and water, but today one of the alcoholic beverages is often replaced by non-alcoholic.

Therefore, we are actively developing this area. Mocktails, our own kombucha, author's lemonades and non-alcoholic alternatives to alcoholic beverages appear in our projects. Now we are also working on functional drinks that will not only be delicious, but also contain useful components such as collagen, antioxidants, magnesium and other elements.

— How do you feel about franchising?

— Positively. Now we are actively developing the franchise of the bar "My drunken Grandmother flies to Singapore" and are negotiating with potential partners.

It is important for us not just to sell the franchise, but to find people who share our values and are willing to develop the project with us. There is a fairly family corporate culture within the holding, so partnership for us is primarily a coincidence of views.

From a business point of view, the franchise looks attractive: the payback period is less than two years, and the initial investment is noticeably lower than when launching many large restaurant brands. Therefore, the project is interesting for both experienced investors and those who just want to try their hand at the restaurant industry. And we also added a cool option to the franchise — "Grandma's Recycle", this is if you already have an institution, but for some reason it did not "go", it is easy to transform it into "My drunk grandmother" with minimal investment.

— How did the Be Better Bar project come about?

— The idea arose at the end of 2023. We saw that the team structure was changing. For a long time, the average employee's working time in the holding exceeded three years. Many experienced employees have grown up within the company and have taken leadership positions.

However, at some point, the average age of the team dropped dramatically. Previously, it was about 34 years, but in 2024 it will be 22 years. We realized that the old methods of motivation stop working.

Then we conducted a series of interviews with restaurateurs, HR directors, managers and line staff. We asked the business about its pains, and the employees about what is important to them, what motivates and engages them.

This is how Be Better Bar appeared, a platform for automating employee motivation in the format of modern mobile RPG games, which consists of a mobile application, an admin panel and an LMS. It has ratings, challenges, and an achievement system. Each employee can find the recognition format that is important to them.

— What results is the service already showing?

— The most noticeable result is a decrease in staff turnover and an increase in the average paycheck.

In 2024, turnover in the holding reached approximately 40%. Today, this figure is about 3.8%.

We have seen that financial motivation alone is not enough. You can't raise your salary indefinitely. At the same time, the need to be heard, recognized, part of a team and work in an inspiring environment always remains. It is the combination of material and non-material motivation that gives the most sustainable result.

— What are the plans for the development of Be Better Bar?

— There are a lot of plans. We are developing both the product itself and the methodology of working with teams. We want to attract strong market specialists and create joint educational programs and game mechanics for our employees.

From the technological side, we are considering integration with various health-tech solutions and gadgets, because the topic of emotional burnout and mental health is extremely relevant for the hospitality industry today.

In addition, we continue to develop a training system, analytics, and integration with cash register systems, CRM, and loyalty programs. This allows managers to see a direct link between employee motivation and the company's business performance.

— How to keep the team in the current economic situation?

— I see that after several years of talking about human-centricity, part of the business is starting to move towards tougher management methods again. Personally, I think this is a mistake.

Human-centricity will not disappear anywhere. It is important both in working with guests and within the team. If a relationship is built on respect, support, and sincere interest in people, it's bound to come back in the form of engagement, loyalty, and results.

— Who will survive in the bar industry in the coming years?

— Those who can simultaneously calculate the economy and work with emotions.
Today, the restaurant market is gradually being divided into two areas. The first is food as a function, as fuel. The second is emotional service and impressions.

If you know how to create emotions, personalize a guest's experience, form emotional anchors, and make a person feel special, they will come back again and again.

But at the same time, we must not forget about the economy. Therefore, the winners will be those projects that can maintain a balance between accurate calculation and sincere emotional connection with the guest.