MBG CEO says consolidation is the only way to overcome coronavirus-caused situation

K. Margaryan - At the end of February, as part of the staff and customer safety and health policies we introduced additional standards for the disinfection of restaurants, regularly airing and disinfecting our premises. All restaurants have antiseptic agents for the staff to clean their hands and all guests without exception are provided with chlorine-containing wet wipes and also informational events are organized for the staff for the prevention of coronavirus. Further developments made us close all restaurants of the company on March 15 until March 23, even before the government declared the state of emergency. Our decision was prompted by  corporate social responsibility. 

However, given the spike in the number of people confiremd to have coronavirus, and following the calls of the competent authorities to stay at home, we extended the closure deadline until the end of quarantine. We hope that further developments will allow us to open the doors of our restaurants to guests before this deadline.

- Have you launched the delivery service? How much is it in demand? What do people mostly order?



K. Margaryan - Of course, we launched our own delivery service immediately after the closure of restaurants - first, guided by the wishes of our loyal customers, and then, stimulating the intention of our fellow citizens to eat at home. Our employees in special protective clothing, gloves and masks organize deliveries as soon as possible. I must say that the delivery service is important not so much in terms of ensuring the financial stability of the company these days, but to protect employees from forced downtime by offering an alternative job.

As for demand, it is growing day by day. I attribute it to the trust we enjoy. Clients loyal to our company wish that all responsibility for the entire process, from the choice of products to the delivery of ready-made meals, rests solely with us.

- Have anticoronavirus actions been launched?

K. Margaryan - Given the importance of the role of health workers  in the country these days, as a sign of our gratitude, we organized the delivery of food for the medical staff of the Nork Infectious Disease Hospital, where the bulk of patients are being treated. Ready-made food is delivered from seven restaurants that are part of our network, together with Zatik and Bacon companies.

I am very glad that many restaurants have responded to our call, have joined us and are now providing assistance in a variety of areas. Genacvale Pandok, Buffalo Grill Bar have joined our initiative to deliver food to hospitals, and the Karas national food chain delivers food to hundreds of self-isolated citizens. In our business are all like-minded people working together around a single idea. Now we have also taken care of the safety of the elderly most vulnerable to the virus, supplying them with basic necessities.

- Do you count on state assistance? What specific activities could support the business in this situation? 


K. Margaryan - All possible measures are being taken to overcome the crisis. But, in spite of this, there are entrepreneurs who will cease their activities in order not to take on an additional social burden. I think that the government should take these risks into account and take measures to mitigate them in order to offset the costs to some extent. A business that ceases operations will then find it difficult to recover. It takes years of effort and history to start a business, and it can be destroyed in a matter of days.  

I am sure that today the well-being of any of us depends on our consolidation. I am glad to say that each of our partners, in turn, is trying to do their  best for the optimal solution of problems. All our landlords made concessions by canceling the rent. Partner banks, also taking into account the situation, provided credit vacations. Accordingly, restaurateurs today may not think about the next repayment of loans, accrued interest, payments for services and other things, which will allow us to avoid negative consequences. In a word, almost everyone, having correctly assessed the seriousness of the situation, made concessions. We are strong together, and the only solution to the problem lies in our consolidation.

- Russian restaurateurs call the situation in the field catastrophic and destructive. Do you agree with this assessment? How would you describe the situation in this area in Armenia? Is there a preliminary calculation of the damage caused to the sphere due to the coronavirus?



K. Margaryan - Of course, the sphere suffered huge losses. I will refrain from voicing the numbers. However, any crisis contains a positive component for the economy: after each crisis, take-off occurs, such is the dialectic of development. Those restaurants, whose business models will be the most prepared for the next take-off, will have the necessary tools, technologies, investments - they will win. What happens after the crisis is very important, and I’m sure that we will overcome this test with dignity. One thing is certain - during such events, patience, mutual assistance, cooperation, a balanced approach can help find the best solution to the problem. --0--