Bartaševičius, CEO of Reitan Convenience Lithuania: on current challenges, Norwegian shareholders and plans to expand to smaller cities.

We are sitting down with company director V. Barštaševičius to discuss the success of the cafes and establishments over a cup of coffee at the newly opened Caffeine cafe on Gynėjų street, Vilnius. It is unique because it is equipped with and TV Delfi studio, from which the presenters of the Delfi rytas show greet the audience every morning.

– We can rejoice in the second quarantine, which ended in July. Has everything in your business returned to normal?

– We have not returned at all, as for all our companies. We have not yet reached the end with the kiosks of the Lietuvos Spauda and Narvesen stores, there are points, let’s say, near the offices, where people are less in a hurry. And, of course, the airports, we also have several points in them. These media are still putting us down a bit, but with each passing month, we are growing and getting closer to pre-pandemic numbers.

– So which places or outlets are now your biggest saviors?

– We do well with all caffeinated coffees. They have practically returned to pre-pandemic levels. I would say that the Lietuvos Spauda kiosks also did well; We plan to give them up a bit, but it turns out that during the pandemic, this format performed very well when people didn’t want to go to the stores and could buy newspapers, tobacco, coffee, candy, or snacks while out and about. .

– Has the pandemic led to long-term decisions to close certain outlets?

– Virtually all have survived. We closed only a few kiosks at Lietuvos Spauda and Narvesen stores, but not many. We are in a different situation than other companies because our Norwegians look to the future. They are well aware that the pandemic will end and will remain the strongest once it is over. So we have a good time to prepare for better times: we are investing a lot and opening new points.

– What is the biggest challenge for you today?

– The biggest challenge is getting shoppers back on the streets. Of course, for the most part, they already have. We also depend a bit on tourist flows, as we have several Narvesen and Caffeine points in the old town.

Another important thing is the remaining restrictions. Until now, we cannot all want to assimilate, we see that not everyone wants to be outside or go with a cup in hand.

Also, people change their behavior. We have cafes where they came just to work with a cup of coffee on the tables. Now that has changed.

On the other hand, we hope that in the fall, when people return to the offices and start moving more again, we will also feel the improvement.

– Over the past year and a half, many people have heard from businesses that people will change their habits during a pandemic. You are less likely to visit outlets where you can’t buy everything at once. Do you already feel a change in consumer behavior?

– Habits have changed. Maybe not so much in terms of coffee, but in terms of food. We see how many Wolt couriers travel through the city. People have learned that food can be ordered at home and enjoyed, especially among young people. That’s why we started working with Wolt.

– You mentioned that the biggest challenge is getting people back on the streets. But there is more and more talk of a new wave. Are you already planning what to do if it hits? How are you going to do that?

– If we close the house again, you may think thoughtlessly, there will be no people on the streets. In this case, unless the merchandise can be delivered by courier. But this is not a substitute for live trading.

We are quite active in business. If another quarantine comes in and the cafes are closed, take out only allowed, we have offers for a business that can provide coffee to its employees. This service is becoming very popular and we have invested heavily in this solution.

We also have backup options if the interior of the cafes is closed and only allowed to be taken away to motivate people to do so.

There was no space here. Food and drinks are not furniture or televisions. They want to be warm and, for example, the coffee does not stir during transport. As a result, we don’t start delivering home right away. We ourselves have tried many times to order coffee from others, to see what quality it comes from. Unfortunately, in many cases, the coffee is already cloudy when it arrives at the customer’s home. So now we have figured out how to avoid it and it would help us if another wave came along.

– You mentioned about the business service. Was this a solution in the event of a pandemic?

– We started this project much earlier, but the preparation period took a long time. We have been working on this idea for quite some time and it is not just a solution for a pandemic.

– July with Delphi opened a new cafe on Gynėjų street in the capital, where, in addition to the cafe, visitors can watch the filming of a morning TV show. Perhaps it is a new concept of caffeine where coffee is not just a coffee, but has more functions?

– Yes, this is our first project with television, but we are already at the M. Mažvydas library. We also have books at Vilnius airport with Narvesen. We have had joint projects with other companies and they are mutually beneficial.

– Maybe this shows a new trend that it is no longer enough that a coffee is just a coffee? Maybe it will just be a service in open spaces, community centers?

– We had a cafe in the cooperation space, but specifically that project was not successful, because the place is uncomfortable: the second floor, and a person from the street did not go to that cafe, only that there were not enough people working at the point .

We have several offers and we work with them.

– Another relevant issue in your sector is the shortage of personnel. I have heard from cafe or restaurant owners that it is difficult to find workers after a long quarantine. How are you?

– They are missing, but we were lucky not to fire anyone during the pandemic. Of course, there were those who went out on their own. For example, in the case of caffeine, young people usually work their first job there, and that movement was greater, but it was easier in the Narvesen or Lietuvos press.

As a company, we have very strong values ​​and, in line with those values, we strive to retain employees, foster a culture of success and career opportunities.

– In this interview and in the previous one, you keep mentioning the Norwegian shareholders. What does this cooperation bring you, as a company and manager operating in Lithuania, not to mention financial backing?

– I have worked in more than one job in my life and now I believe that there is an opportunity in my life. Certainly, there are not many such shareholders. It is a family business run by a father and two sons.

How are these shareholders different from others? Gives total independence. We make any decision ourselves. For example, we decided to set up this café where we sat and did not have to coordinate the solution with anyone. We have a proven annual plan, forecast, investment plans, but I don’t need to provide specific calculations or plans. The management team itself decides what we do and moves forward. We have a board meeting four times a year, and that is enough.

They work on the franchise model in all countries except Lithuania, and the founder of the company is always happy that he has made a lot of people rich, happy that people can make their own decisions. Mistakes are not made only by those who do nothing. Yes, we make mistakes, but we can make them. It is important not to repeat them.

– Do you think that the way your cooperation with shareholders works is a Scandinavian company culture or a personal trait?

– I think it’s personal. I have worked with Scandinavians before so I can say that it is a personality trait that not only allows for independence, but also develops a sense of ownership.

We are told that we should feel like business owners. And when we earn more, the shareholder earns more.

– It seems that the market for chain coffee shops in Lithuania is full. Do you see the possibility that we have brands like Starbucks in Lithuania?

– I would never rule out that possibility. However, as far as I know, Starbucks was offered to buy caffeine when it was sold. Still, I think it’s too small a market for them. After all, there are examples of where they came from and then left. They also count. If we compare the networks in Lithuania, Starbucks is quite strong and they are probably looking for bigger markets.

– Which are your future plans?

– As I mentioned, we are expanding and we plan to expand further. We will open new caffeine cafes this year, we would like to open more Narvesen stores, but we still haven’t found any busy spots. But at least some will definitely open up.

We do not plan to expand Lietuvos Spaudas as a concept. After opening a new Narvesen, we closed the weakest kiosk in Lietuvos Spaudos. Newsstands are still understood in Lithuania as they were in the 1990s. In the area that we have in the Lithuanian newsstand, we cannot do what we want.

– I would like to ask about the regions. Sometimes they may be offended by certain brands. Are you planning to develop caffeine cafes in smaller cities? How many residents does a municipality have to have to think about opening its own café?

– We also think of other cities. We look for places and, if there are good options, we would look. We have received offers to expand into some smaller cities. Of course, it is always important to have favorable figures: we know how many people there will be, how many will be willing to pay more. We are really thinking about it and we think that the time will come when we expand to more cities.