June 18, 2019

The principles of the Freedom Group's scaling

The President of the Freedom Group Narek Sirakanyan told about the performance of the coffee shop in Krasnodar during the previous year. The leader informed the employees about achievements of the team, but mentioned failures as well.

Coffee shop in Krasnodar is the first coffee shop of this kind, where both a cafe and an office are situated in the same place. Initially, the investment was planned at 3 million rubles, however, during the construction and design works, as well as compiling a menu with unique dishes, which the company plans to use in other coffee shops too, the budget had to be stretched to 6 million rubles.

After evaluating the performance of the coffee shop-office, it has become clear that the company has achieved its goals: monthly income was no less than 6 million rubles, and operational costs didn't exceed 2 million rubles.
The specialists analysed the project in Krasnodar and reached a conclusion that the company should be very profitable. Some points were mentioned that had affected negatively the revenue of the company:
  • the location of the coffee shop was not convenient, very few people in the area, initial calculations that focused on the central position proved to be exaggerated;
  • the region doesn't have enough specialists to staff the venture, therefore the revenue didn't reach the goal;
  • the premises do not comply with the public catering standards;
  • the rental was too high.

As a result, the decision to close the coffee shop has been taken, and the search for the new location in Krasnodar, where maximum comfort and convenience for the customers can be reached, has begun. Office will remain in the same place.

After the analysis of the first project, the management of the company has reached a decision to open coffee shops separately from offices in some regions. The decision has to do with the difficulty of finding a place that meets all the requirements of the coffee shop and an office. According to the coffee experts, coffee shops that will be open after the necessary adjustments, should have a revenue of at least 1 million rubles a month.

In the view of the positive trends of development in this direction, the President of the Freedom Group has set a goal to open at least 50 coffee shops by 2022. In accordance with the new strategy, the company plans to get a revenue up to 50 million rubles a month.

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