Black Star Burger plans to change its concept and add alcohol to the menu

The decline in the popularity of burger joints among Russians is forcing the owners of such establishments to test a new format. Thus, the Black Star Burger chain plans to change the concept and add alcoholic drinks to the menu, starting with an establishment on Arbat in the center of Moscow, and if the new format is in demand, expand it to other points. Experts believe that in this way the chain will be able to attract a new audience, but the company’s franchisees may perceive the innovations negatively, since the reconception will require additional costs from them.

Co-owner of the chain Yuri Levitas told Kommersant that Black Star Burger will test a new format of establishments. According to him, it is planned to rename the establishment on Arbat in the center of Moscow “Black Star Burger and Champagne”, obtain a license for alcoholic drinks with an alcohol content of up to 16% and update the concept. He noted that if this format is in demand among guests, the chain’s franchisees will be recommended to rebrand.

The popularity of Black Star Burger was built on the artist Timati (Timur Yunusov), recalls Irina Kozina, director of street retail at NF Group. In 2022, Mr. Yunusov sold his 17% in Black Star Foods LLC to Johann Sovada for 70 million rubles, Komsomolskaya Pravda reported then. Since the artist left the project, the popularity of the establishments has decreased significantly, Ms. Kozina believes.

The founder of the Meat & Fish restaurant chain, Sergei Mironov, believes that although the current format of the chain is effective, changes can contribute to the further development of the business. The updated format will bring a new wave of visitors who previously rightly identified the network with high school students and students, agrees Gremm Group development director Artem Bukin.

Other players have also made attempts to enter the higher price segment. Thus, Stardogs launched the Est.1993 chain in 2022 with expensive hot dogs (see “Kommersant” dated May 30, 2022). But this format has not become widespread, notes Kommersant’s interlocutor in the catering market. Now the Est.1993 website is not working: in Yandex. Maps” indicates that points in Moscow and St. Petersburg are closed. Stardogs did not respond to Kommersant’s request.

Black Star Burger and champagne are incompatible at first glance, but often shocking formats do not resonate with a wide audience, warns Franshiza.ru expert Anna Rozhdestvenskaya. According to her, franchisees almost always have a negative attitude towards innovations that require additional investment. Some of Black Star Burger’s regional partners will refuse the reconception if it is of a recommendatory nature, the expert believes. Artem Bukin, on the contrary, notes that the costs of rebranding and menu adaptation will be insignificant, and the costs of obtaining an alcohol license will not exceed 1.5–2 million rubles.

The number of guests in Moscow burger joints in 2023 turned out to be 10% lower year-on-year, Focus Technologies calculated. According to Tinkoff Data, the number of transactions at burger joints across the country decreased by 22% year-on-year in 2023. At the same time, the turnover of the entire catering market in 2023 increased by 20% year-on-year, to 2.83 trillion rubles, according to Rosstat data.

Over the past few years, the number of “author’s” burger joints on the streets of Russian cities has noticeably decreased, notes Artem Bukin. Against the background of the falling popularity of the format among visitors, the demand for opening such establishments among franchisees at the beginning of 2024 decreased by almost 10% year-on-year, Ms. Rozhdestvenskaya calculated. She adds that compared to 2018-2019, when classic burger franchises were at their peak, demand has dropped by more than 71%.

Daria Andrianova, Vladimir Komarov