Double B

The Art of Coffee

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Authors

Tatyana Rudina

Tatyana Rudina

Anna Averyanova

Anna Averyanova

Natalia Kuzina

Natalia Kuzina

Marina Lobuseva

Marina Lobuseva

School

National Research University Higher School of Economics

National Research University Higher School of Economics

Professor

Ekaterina Ivanova

Ekaterina Ivanova

Global Goals

1. No Poverty 8. Decent Work and Economic Growth 12. Responsible Consumption and Production

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Summary

Double B is a startup chain of coffee shops that was co-founded by Russian entrepreneur Anna Tsfasman in 2012. It is the first Russian brand of coffee shops with global ambitions that expanded its business to Georgia in 2016. This business model positively influences local community development by setting high standards of responsible coffee consumption at a reasonable price. The innovative learning environment created at each coffee shop serves as a new way of inspiration for consumers, employees, and owners alike.

Innovation

The main reasons that influenced development of this coffee shop’s business model are:

  1. Even though Georgia has a long history of coffee culture “the Easter way” thanks to neighboring Turkey, there is a great demand for new forms of responsible coffee consumption at a reasonable price for a young generation of European-minded Georgians. So far, large multinational coffee chains such as Starbucks have not expanded here because of the low level of GDP per capita. Local people do not know much about the trend of responsible coffee consumption, and they are eager to discover this new experience. Thus, this coffee shop creates a special environment where local people can not only enjoy drinking real, high-quality coffee, but also learn some fascinating facts about how it is produced.
  2. The next reason is that Double B will be associated in Georgia with coffee and vice-versa - good coffee with Double B. Double B was originally founded in Russia. Unfortunately, due to tense political relations between the two neighboring countries, it is not easy for Russian entrepreneurs to gain access to the Georgian market for many reasons. Moreover, in both countries there is a low level of entrepreneurial activity as a consequence of the transition from a planned economy to a market economy. This coffee shop shows an example of how business could contribute to better understanding between the generations of young entrepreneurs and consumers in Russia and Georgia.
  3. Another reason is a desire to do what you like. Having worked in large companies, founder Arseniy (24 years old) decided to create something of his own that he was very interested in, and what he wanted to share with people was the art of making coffee. He said during the interview that to "understand coffee is much harder than to understand a good wine; it is an art." He decided to share with people knowledge about what responsible coffee consumption should be. He wants to help people understand high-quality and natural coffee. As a result, it empowers consumers.

Innovation of such a simple (at first glance) product is a new approach to coffee shops as an environment for community development. It is not only the place where one can drink coffee and have snacks, it is a place where one can find an inspiration, new knowledge, and a great, friendly atmosphere. In this project, innovation is the way of doing business. It is about how to appreciate the authentic coffee at a reasonable price and not about how to just consume snacks and drinks. The main idea is to share with local people the history of coffee and give them an opportunity to learn how to prepare authentic coffee, giving them a chance to compare natural, authentic coffee with the ones available at other coffee shops.

Also, the founder has an ambition to scale up his business and do something global. He has the aim to develop a global network of coffee shops, beyond staying in just one country. He believes that this idea is a new step in the coffee industry, which includes not only great coffee. It also includes competitions, educational events, and master classes about coffee. They want to explain why there is no “Americano” at all in the menu and what authentic coffee is all about.

A particular innovation of this coffee shop is a learning environment created through video content, which is shown in every coffee shop, and master classes. By watching video content, customers can see how the company finds coffee in different coffee-growing countries, how managers communicate with farmers, and how they choose the best coffee.

The Art of Coffee

Inspiration

After an interview with Arseniy, we found out that one of the main reasons why he decided to start this business was a desire to have his own business and at the same time to do something he loves. Most of all, Arseniy was attracted and inspired by a coffee business, and he bought a master franchise of the Russian coffee chain startup Double B for operations in Georgia. The industry was chosen due to the fact that Arseniy is very fond of coffee and is interested in everything connected with it. He has been socialized to love this drink through Viennese coffee culture, since he went to school there and spent a lot of time with his family in Austria. Therefore, we can say that the love of coffee was the main reason for the start of this business.

Arseniy thinks that the ability to evaluate coffee is an art, and that is why it is necessary to study a lot. For Arseniy, it is important to give people the opportunity to acquire high-quality, properly prepared coffee, as well as to learn to understand and appreciate it.

In addition to the love of this drink, the opening of this business was motivated by a desire to change things for the better, to contribute to the transformation of the life of other people. The founder wants to expand consumer opportunities by offering new high-quality and tasty products, and also to provide interesting and useful knowledge on this subject area to help consumers learn to appreciate coffee culture and better recognize their own tastes and preferences.

From the interview, we found out that Arseniy was also inspired by the country - Georgia - and its people. He describes how he liked the atmosphere, culture, and way of life in Georgia. He believes that the Georgian people are very open and friendly, despite the prevailing impression that Georgians are very emotional and hard to find a common language with.

Overall impact

The overall impact of the delicious and high-quality coffee is manifested in the fact that the mood of the people increases, they become kinder, and they radiate positive emotions. Consumers feel that they are cared for and by means of a high-quality product, this coffee business is trying to make their day more pleasant. This coffee business wants to attract consumers' attention to the fact that coffee is not just a drink; it is much more than that. Good-quality coffee creates a special atmosphere. Double B shares with people knowledge about coffee, its diversity, and its history. Thereby, the company is doing everything possible to raise people's awareness about coffee culture and its approach to business and to inspire them to be responsible consumers. The main impact of this business is in its positive contribution to the local economy and the emotional well-being of the local consumers.

Business benefit

The company has high expectations about this project. They believe there will be a lot of people interested by it. One of the difficulties they faced was to attract the older generation of people. On the other hand, the younger generation of Double B consumers is growing, which is clear by the number of Facebook followers, which reached over 10,000. Some of the world's top media, such as BBC, have covered the Double B experience. Double B is usually compared to Starbucks, but, nevertheless, the company is still smaller but more agile. However, there is one particular feature about the product’s affordable price that has to be explained; it makes the company’s competitive advantage. Why is there such a difference in price - why does a cup of coffee at Double B costs $2.50 compared to $8.00 at Starbucks?

Many customers stopped drinking overcooked coffee or coffee with Robusta. Double B adapts to these expectations and roasts its coffee following its own technology in Russia. Roasting coffee is one of the most important stages in the process of preparing the final product. The positive experience of finding a perfect roasting formula helped the company to achieve the result that they have now. A responsible approach helps them to reduce costs and avoid the state "unfit for consumption" of the product. Double B pays a lot of attention to pricing. In order to remain competitive, the costs should not exceed 21% of the final price of the product. Thanks to the quality control, only the best raw materials are used.

The company sells franchises worldwide. They have been very picky in selection of franchisees. If someone wants to start a business no matter under which brand, it is not about Double B. Double B is a very unique coffee shop brand. They do not sell snacks, but constantly improve the quality of coffee they offer. Currently they focus their attention on the fact that every coffee shop of the coffee chain works according to common standards and sells only the best quality coffee.

Social and environmental benefit

In developing the project in Georgia, Arseniy and his team also tried to change the perception of people about coffee. Georgia is a country with ancient Christian customs and traditions. There were almost no modern-type coffee shops in Georgia before Double B opened in Tbilisi in September 2016. Drinking a cup of coffee, one can enjoy watching an educational video about different stages of processing coffee beans. What is the core value? Of course, the young team of baristas does not solve the basic problems of humanity, but they do their best by bringing joy to people, affecting their mood, and inspiring them by creating a special environment. People are pleased to come to the coffee shop and learn something new, get answers from the professionals on a daily basis, and take part in special master classes.

The company pays special attention to the internal aspects of corporate social responsibility by creating safe and enjoyable working atmosphere. Double B is investing in development of its human resources through training and professional development programs, and it is working to improve the quality of customer relationships. Every employee is valuable in Double B. Especially valuable experience comes from the team of baristas, who claim to brew the best coffee in Georgia.

According to the founders, everyone should have an opportunity to buy high-quality coffee at a reasonable price. Visitors are not only gourmets and coffee fans, but also ordinary people who just want to try and appreciate the taste of coffee. Double B sees its task to prove how cool it is.

Interview

Arseniy Zyabbarov, Double B Master Franchise Owner in Georgia

Business information

Double B

Double B

Tbilisi, GE
Year Founded: 2016
Number of Employees: 2 to 10
Double B is a startup chain of coffee shops that was co-founded by Russian entrepreneur Anna Tsfasman in 2012. It is the first Russian brand of coffee shops with global ambitions that expanded its business to Georgia in 2016. This business model positively influences local community development by setting high standards of responsible coffee consumption at a reasonable price. The innovative learning environment created at each coffee shop serves as a new way of inspiration for consumers, employees, and owners alike.