Works in the direction of establishment of the "startup economy" in Azerbaijan are continued successfully. A comprehensive support by the government to innovative initiatives is a main reason for successful implementation of startup projects carried out in the country.
The startup projects covering various areas of the economy are also implemented in the catering sector. The restaurant management platform of "Food Lab" LLC, which has been awarded with a "Startup certificate" by the Small and Medium Business Development Agency (KOBIA) creates opportunities for local entrepreneurs engaged in the catering sector to enlarge their businesses. The entrepreneurs may carry their businesses to a higher level within the country and abroad due to the support provided by the project without making any investment.
According to Gadim Valiyev, the head of the startup project, he has been attracted to this realm during his employment in "Bolt Food" company where he has worked for nearly 4 years. Once he obtained detailed information on "Cook Room" business model of the company where he worked in Kazakhstan he decided to establish a "smart kitchen" (or a "virtual kitchen"): "I thought to bring "smart kitchen"s operating in some countries to Azerbaijan by matching them with Azerbaijani model, and later to introduce them outside the country".
The startup founder stated that "Food Lab" has founded the "smart kitchen" combining multi-brand restaurant network for the first time in Azerbaijan. The main purpose of the project is to support local entrepreneurs and help local restaurants grow by providing their activities within the country and abroad through franchising model: "We are working on the basis of information we have obtained from technology companies". For example, there is a great demand for "x" product in "x" point of the city. So, we interact with those restaurants which suit this concept, and arrange their activities in a mentioned location through franchising model. Other advantage is that we can build activities of 2-3 restaurants at a time over a single kitchen. We provide support to entrepreneurs who lack financial resources to expand their own restaurants . An entrepreneur is able to open his/her brand within Azerbaijan in separate places through franchise model without any investment. Currently, the first "smart kitchen" is operating in the country, but we are planning to create several more such kitchens".
G. Valiyev added that "smart" or "virtual kitchen" is engaged in preparation and "take-out sales" and online sales of food. There are not any seats here for customers to sit. In "smart kitchens" restaurants do not provide their menu in full. Typically, express restaurants are involved here. In these kitchens the most sold out products of restaurants are offered to customers. It is considered to create 10-15 "smart" or "virtual kitchen"s in Azerbaijan. Once it is achieved, the creation of such kitchens in Kazakhstan, Uzbekistan, Georgia and Romania has been determined as a target: "We want to provide access for entrepreneurs of Azerbaijan to these countries. For example, this area has more developed in Kazakhstan. There are enough this type of restaurants in containers in dense locations of Almati city, with multiple restaurants rendering "takeaway" and delivery service. This is, in fact, a market with great potential. We want to bring local businesses to this sector. We intend to introduce renowned "fast-food" restaurants of Azerbaijan to Kazakhstan, Uzbekistan etc., through franchising and grow them. I consider that we can support the growth of "fast-food" restaurants and introduction thereof outside Azerbaijan".
According to startup founders, they are planning to establish such restaurant in Kazakhstan at the first stage. If the works progress as scheduled, it is planned to open Azerbaijani restaurants in that country within next 4-5 months. Currently, relevant technical issues are under discussion with partners, and several locations have been selected for the execution of the project.
G.Valiyev highlighted that they were considering combining 2-3 restaurant brands in each "smart kitchen". This means, in average, a combination of 30-40 restaurant brands. Minimum 5-6 people will work in each kitchen. As the number of restaurant brands represented in "smart" or "virtual kitchen"s increases, so will the number of employees. If 15 "smart" or "virtual kitchen"s are built according to the project, in general, 90 new workplaces that are only related to the kitchen will be created in Azerbaijan. It is planned to increase the number of employees in future as well.
One of goals of LLC is to develop a mobile application and achieve making orders through this application. At the same time, currently, negotiations are conducted with financial institutions for the purpose of stimulating cash-back campaigns to make "takeaway" orders over "self order" and for customers to make orders via the card.
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