Karas' formula of success. A business started with 200 USD
2016-10-12
<p><img alt="" src="https://www.karas.am/media/wysiwyg/2016-karas_founders_372840361.jpg" style="width:734px"></p><p><strong>“Karas” company operates in the sphere of restaurant and fast food service of Armenia for more than 10 years. During this period the company was one of the firsts to put in use its own delivery service, carried out rebranding by changing its target market segment, as well as actively cooperated with the European Bank for Reconstruction and Development (EBRD). “Business 24” interviewed Tigran Yuzbashyan and Ashot Harutyunyan – the founders of Karas national food chain regarding their future plans and secrets of success.</strong></p><p><strong>Business 24. – Karas is one of the best examples of a successful business in Armenia. Could you present what is your key to success? What is Karas’ vision?</strong></p><p>Tigran Yuzbashyan – Being founded in 2005, Karas started its active development from 2009-2010, when we were already skilled enough and acquainted to the needs and specifications of the market. The key to our success is that we constantly worked on the development and expansion of the company and were open to innovations. We implemented many programs for the development of the company as well as for withstanding competition. Our company has always worked, works, and will continue working in terms of healthy competition and we will yearn to maintain our leading positions by implementing new development programs. Today the company's vision is Karas for everyone. This means being a company in the sphere of restaurant and fast food service, which will serve almost all layers of the society.</p><p><strong>Business 24. – The tempo of the growth of economic activity has decreased in Armenia, according to statistical data. How does this fact reflect on the company's activity? Generally, how would you rate the state of economics and the business environment?</strong></p><p>Ashot Harutyunyan – We love our country very much. This is the most important thing in business. We have always said that we, businesspersons, do everything possible for the development of our country. It depends on each one of us to change the economic decrease to an increase. Karas managed to become a market leader through hard work. We founded Karas as two friends and succeeded with our own efforts. We started our business with only 200 USD and today we are one of the leaders in the market. We proved on our example that it is possible to start a competitive business and succeed in Armenia. I urge everyone to use products from national producers, that way we will improve and strengthen both our economy and our country. As for the decline in economic growth rates, it has no negative impact on the Karas activities. In 2016, we have the same results as in 2015. During an economic downturn, there is still a demand for the public food sector. In times of crisis, people still have breaks, celebrate events and more.</p><p><strong>Business 24. – Several months earlier the company declared about successful completion of 1.5-year cooperation with EBRD and implementation of HACCP quality standards. If possible, please tell us more about the goals and results of this cooperation. What do the HACCP quality standards assume?</strong></p><p>Tigran Yuzbashyan – I am very confident that our cooperation with EBRD was very fruitful. We cooperated in every direction of business management and expansion, including marketing, HR policy, finances, quality management, etc. At first, the cooperation with EBRD was planned to last one year, however, during our cooperation; EBRD became very interested in our business considering it one of the most successful businesses and it was their initiative to prolong the cooperation, which lasted more than one and a half year. Being quite informed and having a quite big working experience in this sphere; Ashot and I, as founders and owners of Karas are always ready to accept right pieces of advice. EBRD was very useful in this case. The most important result of cooperation is the implementation of HACCP quality standards. These standards are usually set for Canadian, American, and European restaurant and fast food restaurant companies and I can proudly say that there are very few companies implemented these standards in the region and in CIS countries. With implementation of HACCP quality standards, whole activity of the company was documented. Which means, we have a thoroughly documented package about the company's activity in every direction, on how the following works should be organized; HR, quality, design, etc. The implementation of these standards helps to improve the efficiency of all departments of the company, as well as the development of a franchising model. We have received many offers to cooperate with the franchising model in other countries, thanks to the introduction of HACCP quality standards and now we are almost ready for it.</p><p><strong>Business 24. – How would you rate the competition in the market? Which are Karas’ competitive advantages?</strong></p><p>Ashot Harutyunyan – We welcome healthy competition, and we continuously implement many new programs (e.g. rebranding, cooperation with EBRD, etc.) to withstand the competition and keep our leading position in the market. We are open to new ideas and initiatives. This is one of our competitive advantages. Besides that, we cover a big segment of the market. Youth and tourists eat in Karas. We welcome families, different holidays are celebrated in our event halls. We not only offer an on-spot service, but also a takeaway service. The foundation of Karas’ strategy is – high quality, low price. Our goal is to be affordable to a bigger sector of the society. Today, our chain serves about 200 000 - 250 000 customers.</p><p><strong>Business 24. – Last year the company launched “The border in my heart” charity project. Would you present the process of the project?</strong></p><p>Tigran Yuzbashyan - “The border in my heart” charity project is one of the most important initiatives of the company, in the scope of which everybody works with a big excitement. It is not an aid but is rather our expression of gratitude to people living close to the border. Currently, in the scope of the project in schools of villages near the border, arts and crafts classes are operating, funded by the company. Soon, in some of our branches will be set up exhibition and sales corners featuring artworks of students. The income from the sales of artworks will be directed towards financing of the projects in the villages. Besides that, we are also willing to help those villagers in selling their agricultural products, in the scope of “The border in my heart” charity project.</p><p><img alt="" src="https://www.karas.am/media/wysiwyg/5_277208737.jpg" style="width:734px"></p><p><img alt="" src="https://www.karas.am/media/wysiwyg/2_108698082.jpg" style="width:734px"></p><p><img alt="" src="https://www.karas.am/media/wysiwyg/1_855175871.jpg" style="width:734px"></p><p><img alt="" src="https://www.karas.am/media/wysiwyg/6_524090241.jpg" style="width:734px"></p><p><img alt="" src="https://www.karas.am/media/wysiwyg/4_220585467.jpg" style="width:734px"></p><p> </p>