Georgia is re-opening, after the existential challenge of a mighty pandemic. It is time, as Shakespeare would say, to “lay aside life-harming heaviness” (Richard II) and get back to the business of living. As everywhere affected by the virus, Georgia’s road back will confront new realities that demand attention. Many entrepreneurs will pit their skills and intelligence against the new challenges, and they will expect to prevail.
With the assistance of president Giorgi Pertaia and his wonderful team at the Georgian Chamber of Commerce and Industry, we asked a number of these entrepreneurs how they viewed the emerging recovery landscape. We posed these questions:
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- What do you see as the immediate and longer-term challenges to reopen your business in the wake of the pandemic?
- What strategies do you have to meet those challenges?
- What demand do you observe in the market of services? Are clients hesitant, or do you see eagerness of people to go back to ‘normal’?
- How will you know if you have succeeded?
And they answered:
The owner of Candy, a cocktail bar in Tbilisi, whose motto—“Candy is dandy but our gin is quicker”—describes his “Funky Gin Bar: Rad Groovy with disco vibes and nasty beats you’ll try hard to never forget.”
“Our Café Bar ‘Candy’ was established in 2018. As group of enthusiastic young people, our main aspiration was to create a place to meet your friends, interesting new acquaintances or just relax. We have a very large selection of gin and variations of well-known and unique cocktails, as well as craft burgers. Just an aside, our burgers were recognized as among the best in town, and we are very proud of that.
“We are located in one of the historic places in Tbilisi, an old wine factory that is no longer functioning, where we share space with other cafés and bars. Our main goal was to create a unique environment where the old spirit of Tbilisi is mixed with modern vibes, a model that has resulted in us holding a lot of unique events and activities. Our café is very popular amongst locals and international tourists. I think it’s a great place to socialize with a diverse range of people and cultures, as well as meet your long-lost classmate. Our strength is our staff—we employee up to 20 persons, most of them energetic and very social young people, which further advances our reputation of a very home-like environment.
“Our main goal is to make our visitors cheerful, happy and relaxed, with the gin, excellent burgers, and nice service. And it is not that difficult.
“Due to Covid-19 we were temporarily closed on March 17th, and re-opened on June 1st. A significant part of our guests is foreigners, so the pandemic impacted our overall income. In addition, our café is located in a densely populated location, creating a situation where large numbers of people in one space could directly affect many customers.
“We do our best and try to be creative, but new challenges unfortunately keep piling up. Our main strategy is faith in our team and willingness to adapt. Additionally, we try to position our place as a safe destination for cocktail lovers, as we punctually fulfill all safety requirements from the government.
“There is certainly a big demand from our past customers, especially in the summer. Last weekend we saw almost as many people in our place as before lockdown. This amazed us, because we did not expect it. We have a new rule: one cannot order a drink at the bar, he/she must be at the table. This avoids crowds at the bar. People don’t like it, but they are still happy. Anyway, I think as soon as there is a reasonable opportunity, businesses like ours will bounce back.
“I would say one of the most important things necessary to succeed in this new environment is to maintain quality. When people return to my café, when they see familiar faces of the employees, and when they get the gin and burgers just the way they remembered them, they will feel and say that nothing has changed. For us, that will be success.”
The owner of the JSC “IMERI” Textile Company from Kutaisi, an established and internationally known manufacturer, provided this vignette.
“Imeri is a clothing manufacturing company with over 90 years of operating experience. The company is located in Imereti region, in Kutaisi. With 450 employees, we have become one of the largest employers in the region.
“The company stepped up a level and on a new stage when we began active cooperation with international companies such as “Lebek” (Germany), and “Egeria Limited” (Italy).
“Over the past two decades, the company has exported 95% of its merchandise to the American and European markets. The key to the company’s success is its qualified labor force and its tailored approach to each garment. Also, our ability to adapt technical knowledge to the needs of customers, continuous technological investments (Imeri is an “Enterprise Georgia” beneficiary), and constant improvement in production quality.
“Between March 23rd and May 11th, the company suspended its business operations with major customers. Despite the lockdown, the enterprise engaged in the “Produce Veil” campaign, a Georgian government initiative, and very soon the company produced its first batch of medical supplies. Because of this project, Imeri increased its staff and, coincidentally, its opportunity to maintain a solid position in the labor market.
“Still, the company continues to face many obstacles during the economic reopening. The main long-term challenge, which could begin at any time, is the risk of a second wave of the coronavirus outbreak. We must also navigate shorter-term challenges, such as delayed business negotiations, to attract new partners.
“To meet these challenges, the company has launched a new strategy. To mitigate the possibility of a new outbreak, we are working on further diversifying production to include producing more medical equipment and supplies. As for business meetings/negotiation, we are moving to a digital online mode to establish new working relationships. Generally speaking, any a new strategy must compare new performance and demand with previously established standards. With this methodology, we can see that the second solution—going online—is not the best one. But in this situation, we have few alternatives to overcome the challenge.
“Since May 11th, Imeri has continued to work with existing partners, and it has begun linking up with new partners. All the company’s employees have returned to work. We take care of our employees; we have created all the conditions necessary for them to feel healthy and protected. Imeri has the necessary equipment to fight the virus, and we follow instructions provided by the state.”
The account below comes from the owner of Travelshop (travelshop.ge), a travel agency that—just before the beginning of the COVID-19 pandemic—branched out into the hospitality and restaurant business, with Z10, a boutique hotel and a Georgian/European restaurant in Tbilisi city center near the Parliament.
“Travelshop (travelshop.ge) was established in June 2009. We have a very large client base, both corporate and retail. I believe that every traveler needs a personal approach, and that’s exactly what my employees provide. It is always good to get a new client, but I think that returning customers signal the greatest appreciation of the work that we do. I always tell my employees that the day we forget the name or preferences of any of our clients, will be the day we become a “factory line” and would need to close. I have a truly terrific staff that makes sure that our clients can always get personalized service in this digital century.
“‘Z10’ is a café/restaurant/hotel located in the very center of Tbilisi. We are kind of nestled in a 19th-century building that adds charm to the services we provide. We were due to open for business on March 20th, but unfortunately had to postpone opening due to Covid-19. We closed temporarily on March 17th.
After the government lifted restrictions, we decided to open the restaurant on June 8th, and the newly recruited staff was really excited about finally opening. Hotels have permission to open from June 15th, but I do not believe that we will open until the flights to/from Georgia resume.
“The most immediate challenge is uncertainty. Unfortunately, we do not yet have any specific regulations related to travel, and we do not know when will flights resume. Long-term challenges would depend on regulations, since there is a very high probability that the cost of travel will increase as various countries impose their own restrictions.
“Unfortunately, there can be no strategy at the moment, since on the one hand we are implementing new regulations, but on the other we still do not see the full picture or a ‘new normal’ scenario of travel resurrection. We will have to adapt day by day according to that moment’s reality.
“Georgians are fighters, so they are always eager to go back to normal. We have numerous requests from our clients, but, unfortunately, we cannot provide any services at the moment except for domestic tourism.
“I do believe that at the end of the day finances speak. I have been taking care of my employees since the pandemic started, and I really do not think that I am doing anything extraordinary. I think it is a responsibility of every business owner to provide a comfortable environment for employees and to encourage them during uncertain times.”