#interview: Artem Temirov/ Georgia and Serbia
We believe in the importance of collaborative development within the specialty coffee sector
Jun 28, 2023
“Chernyi Cooperative” was at the forefront of popularizing specialty coffee in Moscow, starting about ten years ago. The team did not initially plan to open new outlets but aimed to remain a small yet legendary coffee shop with a unique working model, offering quality products, embracing humanistic values, and cultivating a loyal audience. However, in 2022, they ultimately decided to open new venues outside Russia; they have already opened a coffee shop in Tbilisi and are preparing to open one in Belgrade.
Is it possible to transfer the horizontal connections and product quality to new locations? What are the specifics of the coffee culture in Serbia and Georgia, and in what direction can the speciality niche develop? Artem Temirov, the co-founder of “Chernyi Cooperative”, provided the answers.
Are the new coffee shops still the same “Chernyi Cooperative”? Have there been any changes?
“Chernyi Cooperative Coffee Roasters” in the new cities is indeed an extension of the original project. The management team remains unchanged, with myself still overseeing the product. The main change is that we have attracted investments to initiate projects in new countries, a strategy we never pursued in Russia.
Another significant change is that the team has become smaller: several members, including those who collaborated on product development with me, departed from the project. They left Russia when our plans for new locations were not yet concrete. However, the core team members remain dedicated to advancing the project, maintaining the same ideology, concepts, and values.
We strive to maintain relationships with the same farmers. However, due to logistical challenges and importing difficulties in Russia, we may continue working with some farmers exclusively for the new coffee shops in Serbia and Georgia, rather than in Russia.
Are you considering developing other formats of work in new countries, such as cooperating with restaurants, offices, or selling coffee online?
We have decided that we will not engage in business-to-business operations in Serbia or Georgia. Regarding online sales, there is no final decision yet; we will assess the situation once we establish the roasting facility in Georgia. We do not have plans to build a roasting facility in Serbia this year, so online sales in Serbia are a longer-term prospect.
Primarily, our focus is on developing coffee shops. While there are thoughts of opening not just one coffee shop in the new cities, but several.
How many outlets can a specialty coffee shop team open without compromising quality?
I believe it’s more about the pace of expansion rather than the sheer number of locations. You could open fifty coffee shops and still maintain quality, but not within a short span of two or three years; in that case, quality would inevitably suffer. However, over a span of ten years, it’s entirely feasible.
Within a year, you could open three or four coffee shops, even five, without sacrificing quality. Quality control today come in various forms, including automation and technological advancements, which can be effectively organized.
Can you tell us about the coffee culture in Serbia?
Serbia boasts a distinct coffee shop culture that differs significantly from that of Georgia. In Serbia, there is a proliferation of locally-owned coffee shops, particularly espresso-focused establishments characterized by minimalistic setups with only a few tables, an espresso machine, and perhaps a limited selection of pastries.
The coffee culture in Serbia is deeply ingrained, transcending age groups and social classes; it’s not solely associated with young or trendy urbanites. In Belgrade, coffee shops are frequented by a diverse clientele, ranging from older individuals to fashionable youths and workers taking a break. This inclusive atmosphere contributes to the richness of the local coffee culture, appealing to a broader audience.
One notable aspect of Serbian coffee shops is their emphasis on coffee itself, often eschewing elaborate food offerings in favor of simple fare like rolls or sandwiches, if anything at all. This focus on coffee enhances the coffee-drinking experience and fosters a deeper appreciation for the beverage.
While the specialty coffee segment is still emerging in Serbia, gaining momentum only in recent years, coffee remains relatively affordable in Belgrade, even at specialty coffee shops, compared to Tbilisi.
An interesting commonality between Serbia and Georgia is the presence of waiters in coffee shops. In Serbia, it’s common for the barista to also serve as the waiter; patrons are seated, and the barista takes their orders and prepares the coffee. However, there’s a growing trend of counter-service establishments, particularly in Serbia’s emerging specialty coffee scene, where customers place orders directly at the counter. While this shift isn’t yet widespread, it reflects the evolving dynamics within the coffee culture. Similarly, our upcoming coffee shops will also feature counter service.
Who will you compete with in Belgrade?
We anticipate competition from both specialty coffee shops, which are relatively few in number and can be counted on one hand, with some having opened as recently as 2022, as well as popular chain coffee shops.
I’d say, our primary focus will be on competing within the broader coffee shop market rather than solely within the specialty coffee niche. We believe in the importance of collaborative development within the specialty coffee sector, recognizing that together we compete against all other coffee shops, ranging from local chains to global brands like Starbucks.
How have you been received in Serbia?
In Serbia, we’ve received support from local specialists in the specialty coffee segment, who have offered advice and assistance with contacts. There’s a sense of anticipation surrounding our arrival, and it feels like there’s a shared excitement about the potential collaborations and innovations we might bring to the table.
What can you say about Georgia?
In Tbilisi, the specialty coffee scene is more vibrant, with numerous new coffee shops emerging and a growing number of entrepreneurs entering the market. Since 2016, there has been a specialty chain called Coffee Lab, and Shavi, a specialty coffee shop with its own roastery, they have contributed to the development of a community of people interested in specialty coffee.
In terms of overall coffee culture, there are fewer coffee shops compared to other places. Outside of the specialty niche, less emphasis is placed on the quality of coffee itself, and many coffee shops offer a broader range of food options, including full meals, rather than just snacks or sandwiches.
A notable aspect of coffee culture in Georgia is the expectation for full table service from a waiter. Unlike in Serbia, where orders are handled by the barista, in Georgia, customers typically expect to be served by a waiter. This has occasionally led to confusion for customers at our establishment, as our ordering system involves placing orders at the counter and making payment upfront.
We have been warmly welcomed by people in general. While many of our initial visitors are immigrants from Russia who were familiar with us before, we are gradually building a base of regular customers among local residents and expats from various countries. Although there is some competition, particularly from chain establishments, there is still a scarcity of large, upscale coffee shops in Georgia.
Our approach here is also to compete with chain establishments rather than exclusively within the specialty coffee niche. Specialty coffee enthusiasts often enjoy exploring different coffee shops and are not necessarily loyal to just one. It’s common for them to visit multiple coffee shops in a week without compromising their loyalty to any particular one.
How’s the roasting industry?
The situation differs between Serbia and Georgia.
Initially, in Georgia, we considered sending coffee from Moscow. However, we soon realized the necessity of roasting in Georgia itself and opted to establish our own roasting facility instead of renting one.
In Serbia, our plan is to rent a production facility to roast our coffee.
Both Serbia and Georgia have vibrant coffee scenes with many exceptional roasters, and we frequently engage in cupping sessions together. However, there are more roasters in Serbia compared to Georgia. While many new coffee shops are emerging in Tbilisi, there is a scarcity of roasters there. Conversely, Serbia has a plethora of micro-roasters.
Overall, I anticipate numerous exciting developments in both countries, as the current level of quality is already impressive and is expected to improve further.
How did you choose the countries for the new coffee shops, and how long did it take to make the decision?
When we decided to venture outside of Russia, we identified several countries where it was relatively straightforward for individuals with Russian passports to establish a legal entity and start a business.
It was crucial for us to target countries with a significant population of Russian immigrants, as they formed our primary customer base. We selected Turkey, Kazakhstan, Serbia, Armenia, and Georgia for analysis. Next, we evaluated these countries based on business potential, coffee culture, and economic stability. Turkey was eliminated due to the frequent fluctuations in the lira, which posed challenges for pricing coffee. In contrast, other countries seemed economically viable, but Kazakhstan didn’t meet our criteria for coffee culture development.
Ultimately, Armenia, Georgia, and Serbia remained under consideration.
We conducted brief interviews and discussions with industry experts in each country to gauge the state of coffee culture and sales.
This decision-making process took approximately three weeks.
Subsequently, we began seeking investments, intending to open in the location where funding was secured first. Eventually, we secured funding in Georgia and Serbia. Realizing the challenges of managing operations in multiple countries simultaneously, we decided against opening in Armenia for the time being.
What problems did you encounter? Was it difficult to find premises?
There weren’t any issues with finding premises; it simply took a considerable amount of time to search. In Georgia, it took about five or six weeks to find suitable premises, while in Serbia, it took three months to locate a suitable location, followed by an additional two months to finalize the contract, which prolonged the process.
In Serbia, there were challenges with banks when depositing money into the company’s account. Due to all partners holding Russian passports, every transaction underwent extensive scrutiny, causing significant delays; each payment could take two to three weeks to process.
How did you recruit the team and contractors?
In Serbia, our coffee shop team consists mainly of local individuals and those who left Russia long ago or at the onset of the full-scale invasion of Ukraine. I personally visited Belgrade to conduct interviews, and recommendations from acquaintances who owned other coffee shops led us to hire local talent, including a manager.
For architectural and contracting needs, it was crucial to involve professionals who were knowledgeable about and enthusiastic about the cities. In Serbia, we partnered with Kristina Khatlamadzhiyan from Freya Architects, who had relocated to Serbia. Her local connections facilitated collaboration with contractors. Additionally, the premises owner took a proactive role in sourcing contractors, driven by an interest in achieving a high-quality outcome.
Regarding equipment sourcing, local contacts and our experienced manager, who had worked in another coffee shop in Serbia for five years, proved invaluable.
In Georgia, our partners recommended several local architects, with whom we established a rapport and began collaborating. We worked closely with Azamat Nyrov and Alexander Plotkin from SKNYPL, who not only designed the furniture but also provided valuable insights into overall project solutions. Although finding contractors posed initial challenges due to this being our first project in Georgia, assistance from friends who had previously opened restaurants or bars in the country proved beneficial.
Upon announcing our plans to open in Georgia, we received numerous inquiries from individuals who had emigrated from Russia and Ukraine, expressing interest in working with us. Sorting through these resumes, we conducted interviews with promising candidates to assemble our team.
Finding local staff was a bit more challenging. We utilized Instagram advertisements and I personally reached out about the job openings. Additionally, my Georgian friends reposted the announcements. Consequently, the two individuals currently working for us were referred to us by my Georgian friends.
Overall, my extensive connections within the coffee industry facilitated swift networking, with many individuals eager to lend their support upon learning of our venture.
Have your marketing goals changed due to expansion? Is there still a need to educate audiences about specialty coffee?
Certainly, education and storytelling about coffee have been significant components of our marketing strategy in Russia, and they will remain crucial. With the shift in our audience composition in Russia due to the departure of our main old customers, it’s imperative to continue education efforts, even at a basic level, to explain what specialty coffee is.
But from now on, we will focus more on promoting expensive lots and sustainable relationships with farmers, and on telling the stories of specific farmers and regions.
Additionally, we aim to educate consumers to discern tastes effectively. This involves imparting knowledge on understanding the nuances between different coffee varieties and origins, enabling consumers to appreciate and differentiate various coffee offerings.
Furthermore, our goal is to strengthen our brand presence in new markets, ensuring it resonates as strongly as it did in Russia. As we contemplate expanding beyond Georgia and Serbia, brand building becomes a paramount task, and we’re strategizing on how to achieve this more intentionally.
Over the past decade, we’ve accumulated experience and refined our goals and values. Now, with a clearer understanding of our objectives, we anticipate communicating our initiatives more effectively. Now, I believe it will be easier for us to articulate our who we are and what we are doing.
You have consistently strived to maintain an ethical approach in your projects, supporting farmers and collaborating with NGOs. Given the ongoing events and the growing relevance of postcolonial discourse, what can entrepreneurs from Russia offer to the local communities in the countries where they launch their projects?
Entrepreneurs from Russia can offer valuable assistance to local communities by first taking the time to understand their needs and dynamics. While I have connections in Serbia and Georgia through my involvement in various NGOs and political circles, I acknowledge that I don’t have complete knowledge of the local situations. Therefore, we are proceeding gradually.
We are committed to collaborating with funds that support refugees, not limited to those from Ukraine. In Serbia, we are in discussions with local activists to determine the most effective ways to contribute. In Georgia, we have already initiated partnerships with NGOs aiding Ukrainian refugees, providing humanitarian assistance, medical aid, housing, and more. Throughout June, we allocated 50% of black coffee proceeds on Fridays to the Choose to Help fund. Similarly, in July, we plan to continue supporting another fund through similar initiatives.
We prioritize engaging with local activists to understand their specific needs and preferences. By consistently working with multiple funds, we aim to provide ongoing support to the communities we serve.
Given the limited number of NGOs focusing on refugee support, we endeavor to maintain sustained partnerships with them, ensuring they have reliable support and assistance.
