Restaurateurs gathered near the Kremlin

Restaurants of the high price segment demonstrate resistance to the crisis. Contrary to the all-Russian trend towards an increase in the number of closures and a decrease in the rate of openings, restaurateurs in the center of Moscow remained active, including through the adaptation of menus and concepts. But in 2023, the number of openings of institutions in the center of Moscow may decrease due to lower business income and savings on development.

In 2022, 122 high-quality restaurants opened within the Garden Ring in Moscow, according to the NF Group. According to analysts, the indicator corresponds to the levels of 2021 and 2019, when about 125 and 120 objects were launched, respectively, and exceeds the value of 2020, when 85 new outlets were opened. According to NF Group estimates, full-fledged restaurants provided 48% of openings in the center of Moscow in 2022, another 20% came from bars, and 32% from cafes, coffee houses, karaoke and other formats.

The situation in the center of Moscow differs from the nationwide. According to a study by cafe and restaurant automation service r_keeper, in the fall of 2022, the number of cafe and restaurant closures nationwide increased by 25.7%, while the number of openings decreased by 3.8% year-on-year. As a result, in the fourth quarter, the number of operating points decreased by 10.4% due to difficulties with the purchase of products, reduced traffic, errors in the choice of locations and “general uncertainty”.

As noted in the NF Group, the beginning of 2022 turned out to be difficult for the market, but some restaurateurs were able to quickly adapt by updating the menu, revising the concept and suppliers. Irina Kozina, Director of Street Retail at NF Group, notes that the highest stability was shown by establishments in the luxury and premium price segments, which are slightly dependent on external factors and have regular customers. Although some of these restaurants had to adjust the assortment, and some focused on dishes from local products, she adds. According to NF Group, 66% of restaurants in the center of Moscow that opened in 2022 operate with an average check of 1-3 thousand rubles, and 8% – more than 3 thousand rubles. Concepts with European and author’s cuisine are in the lead.

Yevgeny Nichipuruk, the founder of the Rakovaya gastronomic bar chain, points out that the number of restaurant openings in the center of Moscow is not associated with an increase in traffic and financial performance in the industry. According to him, many projects were conceived back in 2021, when restrictions were lifted due to COVID-19. Evgenia Makhneva, the founder of Management Factory, clarifies that in the spring and summer of 2022, establishments were opened that were supposed to be launched back in 2021, but were frozen. Yevhen Nichipuruk adds that non-core local investors have also begun to actively invest in public catering, for whom the withdrawal of funds abroad has become inaccessible. One of the leaders in the pace of openings in the center of Moscow in 2022, the Pinskiy & Co restaurant group, focused on launching projects with other players from different industries, NF Group noted.

Franshiza.ru expert Anna Rozhdestvenskaya says that the good pace of restaurant openings in the center of Moscow can also be explained by the appearance of attractive vacant premises due to the departure of some international brands. According to NF Group, street retail accounted for 71% of restaurant openings in the center of Moscow in 2022. But over the year, the share of the format decreased by 18 percentage points, and the share of establishments opened in business centers and hotels increased from 2% to 9%. Irina Kozina attributes this to the return of employees to their jobs, and Yevgenia Makhneva points out that business centers and hotels in the center of Moscow today are distinguished by relatively stable traffic.

Nevertheless, restaurateurs are planning new projects carefully. Ms. Makhneva recorded a trend towards adapting projects to new budgets: estimates are calculated more carefully, some items of expenditure are reduced, and the staff is optimized. If earlier restaurateurs were ready to enter into a lease at any cost in order to open an establishment in a fashionable place, now they are more careful, says Irina Burenko, Commercial Director of R4S Group. As Evgeny Nichipuruk notes, rising prices for food and alcohol will put pressure on the margins of market participants, so 2023 will not be so rich in restaurant openings.

Daria Andrianova