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Friday 20.07.2018 | Name days: Ramona, Ritma

Fontaine Delisnack Riga to drive Ronald McDonald to tears

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Baltic news, News from Latvia, BNN-NEWS.COM, BNN-NEWS.RUCrisis was an effective stress test to the catering sector and lack of money made people become more creative, which is especially important when the market is so fragmented, namely, each and very comes up with something different, say Jānis Kļaviņš and Ivars Kalvis, franchise Fontaine Delisnack Riga representatives.

Fontaine Delisnack has already been operating for more than five years in Latvia town Liepāja. Why was it opened in Riga only this year?

Jānis Kļaviņš (Klavins): Obviously no one had strong will enough, because there was no tender on Delisnack franchise.

Ivars Kalvis (Kalvis): It was our initiative to contact the owner [Editor’s remark: Danish businessman Steen Lorenz] and we agreed upon that. It was a matter of principle.

Many catering businesses have recently been launched in Riga. What do you think of the competition? Maybe the sector lacks something or vice verse – there is already too much of it?

Klavins: There are both serious and funny examples. I have observed people are interested in nontraditional food, for example, kebabs that are very popular at the moment, also sushi. People like trying out new things and count it as a change in their social habits. In terms of that, we are close to it, because we offer nontraditional food as well. Some funny examples of competition include our neigbours’ kebab in a form of a barrel.

Would you link the boost of the fast food industry to a specific period of time, for example, the crisis?

Klavins: I believe it is just because the sector is evolving. This may be cyclical. Fast food was attributed less attention before the crisis just because one cannot surcharge it. Thus many businessmen were not interested in that.

And then the crisis stroke. Which was a good stress test to the sector, because now we can see the various ways businesses tried to tackle it. The offer is diverse, especially, among the leading market players. Similalry, we can see creativity of the smaller market players that are starting to recognize the impact of advertising on consumption. However, what is the most important is that the crisis propelled development of many interesting concepts, for example,  Kebabs par latu (Kebab for a lat) with a very interesting marketing strategy.

This means lack of money makes people become more creative. This in turn promotes the brand, which is especially important when the market is fragmented, namely each and very has come up with his own offer. Thus it is often that mass communication is not the most optimal solution, especially for such a small business as us.

What are the pros and cons of opening a franchise, instead of launching an original idea?

Klavins: First of all, you do not have to spend that much money on marketing, because the brand is already known. Secondly, we practically do not have to carry out any research of the target market, as it has already been done before.

Kalvis: It is also the menu. If we were to start from a scratch, it would not be possible to show this performance in such a short period of time.

Klavins: Despite this, out contract also allows us introducing unique products. Rainis [Editor’s remark: Latvian national poet] has said – only what changes will keep existing. In terms of this, there are no exceedingly strict rules.

Kalvis: There are, of course, some guidelines as well.

Just recently many catering business representatives point out catastrophic lack of qualified work force. Do you feel it?

Kalvis: This is no “science of space rockets”. One simply needs to learnt how to optimize one’s work, then it all goes on easy. If someone is already used to idleness, he or she will not succeed in any field.

Klavins: If we try to see where this lack of work force stems from, we must point out the remuneration. Similalry, it is also the training process. Employers often say none of the potential workers gets a thing, while actually the training process itself has been faulty.

What are your future forecasts and plans?

Kalvis: We plan driving Ronald McDonald to tears [laughing]. Seriously speaking, we hope taking part in this summer’s key outdoor events. Also Fonaine Delisnack Riga itself had to round up several small issues that took time and attention.

What is your assessment of the government’s involvement in supporting businesses? What are their mistakes or achievements?

Klavins: I believe a good thing would be introducing tax incentives to new businesses complying with certain government’s criteria on profit and losses. This would definitely reduce the sense of risk in launching a new business. Because it is often that people fear whether they will be able to cover all the costs, given the existing taxes.

Similarly, we would also like to see how exactly the collected taxes are made use of, namely, how the society benefits from them. However, at the same time we should not distance too much from the government. The better out attitude towards the country, the better our children will feel about living in Latvia as well.

 


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  1. Moo says:

    Good luck you guys!

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