Reigning kings of dining
Written by: Klára Smolová, Jason Hovet
Photo by: Luminum, Vojtěch Vlk
It has taken fifteen years to instill the awareness of “haute cuisine” into the local dining scene, and that accomplishment can be attributed largely to foreign influence. Today, Prague’s food & beverage industry is a thriving, multifaceted sector that encompasses catering and many other services.
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![]() Photo by: Vojtěch Vlk |
” APART FROM RESTAURANTS offering Czech cuisine and pizzerias, there was nothing,” says Nils Jebens, owner of Kampa Group, recalling his arrival in Prague. Jebens now operates five Prague restaurants and one in Bratislava. “That void enabled us [foreigners] to ‘get a foot in the door’,” he adds. While Czechs always liked to eat, during communism’s fifty-year presence they practically forgot how to eat out, not to mention tasting exotic specialties. “The Czechs’ idea of fine dining didn’t get beyond beer pubs with white table cloths,” says Josef Voltr, PR, marketing, and sales manager for the Kolkovna Group, which comprises five eateries in Prague. “Czechs didn’t have the funding to create this category, so foreigners logically seized the opportunity – and they hold their positions to this day,” Voltr notes.
Since then, the face of the food service industry here has changed beyond recognition. According to 2001 Eurostat data, 90% of the EU restaurant sector is dominated by small, individual establishments (often family-owned) employing under ten people. Although such restaurants also account for 95% of the Czech market, several groups slowly but surely divided up the Prague market among themselves. There are four major players in the fine dining segment – Kampa Group, Zátiší Catering Group, Pálffy Group, and Bacchus Group – while chains like Kogo, Ambiente, Kolkovna Group, Potrefená husa, and Pizzeria Coloseum dominate the middle segment. According to the Czech Republic National Federation of Hotels and Restaurants (NFHR) research, these middle-segment restaurants are replacing very inexpensive restaurants in popularity. “The number of inexpensive restaurants is declining, due, among other things, to the negative impact of the higher VAT,” states Václav Stárek, NFHR’s general secretary.
According to unofficial data, there are almost 1,000 restaurants in downtown Prague alone. Competition is still growing, but cognoscenti confirm that there’s still room for development in the market, and there’s still a call for some new types of restaurants. And although the customer base is limited in Prague – unlike in New York or London – restaurants now firmly established don’t compete very much with each other. “Each restaurant is focused differently and provides a different type of entertainment,” claims Zdeněk Sirový, the owner of C’est la vie and one of the few Czech entrepreneurs competing with these groups.
Although the middle-segment groups can’t compete with fine dining in terms of quality, luxury restaurant owners admit they share customers. People who like to dine in peace at Kampa Park or Barock also like going out for a quick lunch at Potrefená husa or Kolkovna. “They don’t have premium locations, but they target a broader spectrum of people,” Sirový says. Whether upper or mid-range, venue quality has truly improved across the board, due in part to the professionalization of the market. The greatest change occurred among suppliers. “When I started, I had to fly in some fresh products – like fish – myself,” recalls Tommy Sjöö, owner of Bacchus Group. Today it’s easy to buy everything, from fresh fish and seasonal delicacies like truffles to the finest wines from producers around the world. All this is in essence a reflection on the travel industry – as the number of hotels and restaurants rises, so does the demand for supply services. This in turn “raises the bar” on what local restaurateurs have to offer. “Today you can’t just seat the client anywhere, you have to pay attention to the details in order to surprise them with something,” notes the owner of the Pálffy Group, Roman Řezníček.
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Tomáš Karpíšek
Photo: luminum – d.raub & l.šavrdová |
How many is enough?
The aforementioned Eurostat data also indicates that restaurant and hotel chains with over 250 employees account for only 0.1% of the hospitality industry, yet they create 19% of the jobs and 23% of total sales within the segment. Indeed, financial strength is the greatest advantage a group has over individual establishments. “It brings a good amount of purchasing power,” explains Sanjiv Suri, Zátiší Catering Group’s owner, adding that lower shared costs, for expenses such as marketing, is another advantage. Besides easier access to bank loans – which are practically off limits for individuals – groups have better negotiating positions with suppliers, who may offer advantageous deals. “They pamper us in terms of both quality and price, because there’s a difference between buying two hundred kilos or two tons of fresh fish a month,” notes co-owner of Kogo, Jovo Savić.
In spite of the widely-held misconception, foreign tourists don’t predominate among luxury restaurants’ clientele. “Tourists are only the icing on the cake,” says Bacchus Group’s Sjöö. In fact, most restaurant owners try to draw in locals – and the more restaurants one owns, the more local diners one can address. Sjöö, who has already opened 16 restaurants in his career, is convinced that, “If you create one restaurant well, the more likely customers will be willing to try another one of yours.” Sirový of C’est la vie has a contrasting opinion, insisting that such a scheme is basically competing with yourself. “With a chain it’s hard to stick with the basic idea and keep a watchful eye on each restaurant,” Sirový says, claiming that he doesn’t want another restaurant. “I think a chain can’t work in fine dining. If you look at the Michelin Guide, none of the restaurants in the highest category have sister establishments,” he explains.
On the other hand, as Josef Voltr of Kolkovna Group points out: “If the concept’s good and it becomes popular it can expand – even to other countries”. Which is precisely what his group is planning. After several successful years of operating Kolkovna, Celnice, and Olympia, it is starting a franchise system with an eye to expansion into Europe within four or five years. The company switched to a joint-stock legal entity, and its owners don’t currently intervene in the daily operation of individual establishments, concentrating instead on developing the company. Tomáš Karpíšek, owner of the popular Ambiente franchise, has a similar approach. “One of franchising’s big advantages is you don’t have to take part in daily operations; you have time to be creative and innovative,” he opines. Kampa Group doesn’t have a franchise system, but Jebens works on a related principle. He delegates daily management responsibilities and devotes himself to making improvements, following trends, and creating new concepts.
Recipe for success
So what are the magical ingredients that make a successful restaurant? “There are three: environment, food, and service,” insists Řezníček. “A good location, a view, and the option of sitting outdoors also help,” adds Jebens. Savić, Kogo’s owner, stresses fresh, high-quality ingredients. And although food is naturally the most important factor, Karpíšek points out that when a restaurant is rated, its atmosphere takes on greater significance. Therefore he first creates the menu and then adapts the atmosphere accordingly – everything from wine glasses to decorations. And many restaurant owners work with renowned designers. “Today restaurants spend the most on architects and artists to custom-create everything – interior, plates, glasses, etc,” says Řezníček.
However, what all this progress means is that it’s also a lot harder to open a new restaurant today than ten years ago. Not only do you need more starting capital, you also have to comply with stricter regulations and face greater competition. Sirový, who opened C’est la vie in 2002, confirms this. “It’s much more complicated to find a good venue, and it takes longer to get established, because there are more good restaurants. I had the advantage of finding a good location, but I had to provide high quality right from the beginning, so as to meet expectations,” he says. One ongoing question is whether the (now developed) local market can accommodate more concepts, venues, and restaurateurs. “It’s still possible to be successful [with a new restaurant],” insists Karpíšek, pointing to the dining scenes in New York and London, where new ideas are always being born.
Kampa Group – Nils Jebens: The viking restaurateur
At first there was Kampa Park – a restaurant named after the well-known Prague quarter and park. It was the offspring of two partners, Norwegian Nils Jebens and Tommy Sjöö from Sweden. Today they are competitors, each with several establishments to their credit. JEBENS KEPT KAMPA PARK, as he did with Le Monde in Bratislava. Gradually he added Square, Hergetova cihelna, Bazaar, and La Provence. The restaurants are intentionally different from each other, not only in design but also in cuisine and target group. Kampa Park remains the flagship, a classic fine dining restaurant that serves many foreign and VIP guests. Square is a café-restaurant, Hergetova cihelna is a large restaurant and a trendy lounge and serves a broad spectrum of clientele. The latest of Jebens’s acquisitions last year were Bazaar on Nerudova Street and La Provence, formerly a restaurant and tapas bar and today a typical French brasserie. Both establishments cater to tourists and local upper-middle-class patrons. Klára Smolová |
Rewarding loyalty
Restaurants owners have to think hard about how to find and keep customers amidst heavy competition. That’s why the segment now makes use of the latest marketing strategies. “TODAY THERE’s a marked move to direct marketing,” says Josef Voltr, the PR, marketing, and sales manager for Kolkovna Group. After recently joining Kolkovna, one of his first projects was the Kolkovna Friends club, which is based on a simple principle – a client registers, and when he reaches a tab of CZK 5,000 he gets a silver card (later a gold one), which entitles him to a discount. The club may gradually take on retail partners from whom the customer also gets discounts. Jason Hovet, Klára Smolová |
Bacchus Group – Tommy Sjöö: Following a gut feeling
When asked for his strategy for success, Tommy Sjöö points to the staff running around his restaurants. “It doesn’t matter what you do, you have to create a good team and be a leader,” he says. In sport, business or life, “the ingredients are very much the same,” he adds. This is one thing he’s learned in 15 years of running restaurants in Prague-and abroad-through his company, Bacchus Group. The 51-year-old Swede, who had been visiting the country since 1979 as an amateur golfer, came to Prague after 1989 – after selling a flourishing construction business in his native country – and quickly landed the opportunity to run the restaurants at Obecní dům. He knew then that a restaurant group was what he wanted. “That was the original plan from the beginning,” he explains. Out of the 16 restaurants he has created throughout the years, currently Sjöö has five, four of which are in Prague – Barock, Pravda (with a sister establishment in Spain), Hot, and Mercedes Forum Café. Jason Hovet |
Pálffy Group – Roman Řezníček: Paying attention to details
Roman Řezníček, Pálffy Group’s owner, is one of the few Czechs who’s managed to build and maintain a position in Prague’s fine dining segment, which is mostly occupied by foreigners. This 35-year-old Moravian started out at a time when he and the public still had a lot to learn about first-rate gastronomy. He bet mainly on high quality, discretion, top-quality staff, and diversification.Pálffy Group, named after the first restaurant, Pálffy Palác, today includes the U Zlaté studně restaurant, just below the castle and boasting one of the most beautiful views of Prague, Sovovy Mlýny on Kampa, and the Mecca musical club. The basis of the Pálffy Palác concept is international haute cuisine in an exclusive, discreet environment. Although a hotel-restaurant, U Zlaté studně is Řezníček’s premium establishment, for which he hopes to get a Michelin rating one day. Klára Smolová |
Zátiší Catering Group – Sanjiv Suri: Cooking up new strategies
The Zátiší Catering Group operates upscale restaurants Bellevue, Mlýnec and V Zátiší, as well as Prague’s biggest catering outfit and the elegant event space, Circle Line. What has the group’s owner, Sanjiv Suri, placed the greatest emphasis on in his 15 years of experience? Training. The basis is the group’s in-house training manual, which has a strong focus on the customer. It also calls for staff to take responsibility for customer visits and to work to make each visit unique. It must be effective, as Suri claims most staff have been around roughly 10 years and turnover never tops 10%. Jason Hovet |
Training is the main course
“Staff is crucial,” says Kampa Group’s owner, Nils Jebens. In a sector where high employee fluctuation is a grim reality, keeping the best people is one of a restaurateur’s main concerns. “RESEARCH SHOWS that customers mostly do not come back to a restaurant because of problems with staff,” notes Jebens. Co-owner of Kogo restaurants, Jovo Savić, adds to this: “If you don’t care about your business, neither will your employees.” Every day you can find him running around his restaurant working as a waiter, receiving supplies, solving problems, and welcoming regular customers. “I work together with my staff, after hours we drink together. I pay them well and I think it shows on how they work,” Savić explains proudly. Jason Hovet, Klára Smolová |