It was his passion for the aromatic beverage that brought Sergei Serbin into the business. Since then, coffee lovers from Moscow to Vladivostok have been able to enjoy his signature blends. Learn about the concept behind Arctic Coffee and how the World of New Opportunities program helped Sergei.
Sergei, how and when did you come up with an idea to start your own business?
In 2005, I was working in a shop. My employer brought foreign coffee blends to Norilsk. It was a novelty at that time, and I became interested and started looking for information about the blends.
In 2010, I suggested that my employer open more outlets and create an online store, because I understood that our monopoly would not last long. But my suggestions were not met with enthusiasm.
I registered myself as an individual entrepreneur and started offering maintenance services for coffee machines. In 2011, I opened an online store because I did not have enough money to open an offline store. At that time, it was the first online coffee store in Norilsk.
In 2005, I was working in a shop. My employer brought foreign coffee blends to Norilsk. It was a novelty at that time, and I became interested and started looking for information about the blends.
In 2010, I suggested that my employer open more outlets and create an online store, because I understood that our monopoly would not last long. But my suggestions were not met with enthusiasm.
I registered myself as an individual entrepreneur and started offering maintenance services for coffee machines. In 2011, I opened an online store because I did not have enough money to open an offline store. At that time, it was the first online coffee store in Norilsk.
Favorite craft becomes favorite job
How did your business grow?
Slowly and within the available budget.
I wanted to open a traditional offline store to be able to engage with customers. But in 2010-2013, it was difficult to get a small business loan and there were no suitable locations. So I started with an online store.
I found the perfect location in 2019. It is a spacious and bright place, with big windows. It took us a long time to remodel it, but we were able to do exactly what we wanted.
We created a space that sells everything one could possibly need: coffee, beans, tea, syrups. We combined the coffee store with a coffee shop where customers can taste the beans right away.
There are now eight people on the team.
Slowly and within the available budget.
I wanted to open a traditional offline store to be able to engage with customers. But in 2010-2013, it was difficult to get a small business loan and there were no suitable locations. So I started with an online store.
I found the perfect location in 2019. It is a spacious and bright place, with big windows. It took us a long time to remodel it, but we were able to do exactly what we wanted.
We created a space that sells everything one could possibly need: coffee, beans, tea, syrups. We combined the coffee store with a coffee shop where customers can taste the beans right away.
There are now eight people on the team.
From beverage to maintenance
Who are your customers?
Our customers are residents of Norilsk. 60% of them are legal entities. We deliver coffee blends to offices, restaurants and cafes. 40% are individuals who prefer not to buy their coffee in marketplaces. The quality of our products and customer service allows us to successfully compete with online stores.
We don’t just sell coffee, we advise our customers and provide maintenance services for both residential and commercial coffee machines. No one else in the city offers this service.
Our customers are residents of Norilsk. 60% of them are legal entities. We deliver coffee blends to offices, restaurants and cafes. 40% are individuals who prefer not to buy their coffee in marketplaces. The quality of our products and customer service allows us to successfully compete with online stores.
We don’t just sell coffee, we advise our customers and provide maintenance services for both residential and commercial coffee machines. No one else in the city offers this service.
Two challenges: logistics and recruitment
What challenges do you face?
All business owners in the Norilsk industrial district struggle with logistics. Transportation costs are very high because there is no railroad. Supplies are delivered by air or water. Water transport is cheaper, but it takes a long time – up to 20 days in winter and up to 60 days in summer. Air delivery takes one week, but the cost is 350 rubles per kilogram.
Another issue we struggle with is personnel. There is no large influx of people into Norilsk, and everyone wants to work at Nornickel. It is difficult for other employers to compete with a giant company in terms of social guarantees and salaries. That is why people are our most valuable resource.
All business owners in the Norilsk industrial district struggle with logistics. Transportation costs are very high because there is no railroad. Supplies are delivered by air or water. Water transport is cheaper, but it takes a long time – up to 20 days in winter and up to 60 days in summer. Air delivery takes one week, but the cost is 350 rubles per kilogram.
Another issue we struggle with is personnel. There is no large influx of people into Norilsk, and everyone wants to work at Nornickel. It is difficult for other employers to compete with a giant company in terms of social guarantees and salaries. That is why people are our most valuable resource.
Rare community program
You participated in Nornickel’s World of New Opportunities program. What was your most memorable experience?
The whole thing was an amazing experience. I did not expect to learn so many new things and get so many new ideas, and I also understood that I had been doing so many things wrong.
We spent six months being trained by experienced professionals. My mentor was Dmitry Bogdanov. I was amazed to find out that people can be so insightful.
How useful was the program?
In 2022, I successfully presented my project and received an interest-free loan. I bought the equipment and have already paid the money back. It is a rare program that is truly needed. You can feel that you are being helped. The most important thing is to jump in, learn new things, work hard, and you will definitely get the results you want.
Through the program, I met new people with whom I still keep in touch and consult on how to make my business better. Also, we started cooperating with the Norilsk Development Agency. It’s a snowball effect: you join a program, meet new people and get noticed, then you get invited to another program and get noticed there, too.
For example, the Norilsk Development Agency helped us get to the MITT Tourism & Hospitality Fair in Moscow, where we hosted the Taimyr stand and showcased our signature drinks, such as venison coffee. We were noticed by Roscongress and invited to SPIEF. And now we have participated in SPIEF for three years in a row, which has increased our brand awareness. People hear about us and want to try our product, even though northerners are conservative in their tastes.
The whole thing was an amazing experience. I did not expect to learn so many new things and get so many new ideas, and I also understood that I had been doing so many things wrong.
We spent six months being trained by experienced professionals. My mentor was Dmitry Bogdanov. I was amazed to find out that people can be so insightful.
How useful was the program?
In 2022, I successfully presented my project and received an interest-free loan. I bought the equipment and have already paid the money back. It is a rare program that is truly needed. You can feel that you are being helped. The most important thing is to jump in, learn new things, work hard, and you will definitely get the results you want.
Through the program, I met new people with whom I still keep in touch and consult on how to make my business better. Also, we started cooperating with the Norilsk Development Agency. It’s a snowball effect: you join a program, meet new people and get noticed, then you get invited to another program and get noticed there, too.
For example, the Norilsk Development Agency helped us get to the MITT Tourism & Hospitality Fair in Moscow, where we hosted the Taimyr stand and showcased our signature drinks, such as venison coffee. We were noticed by Roscongress and invited to SPIEF. And now we have participated in SPIEF for three years in a row, which has increased our brand awareness. People hear about us and want to try our product, even though northerners are conservative in their tastes.
Northern delicacies
How did you come up with the idea of venison coffee?
We were getting ready for a food festival in Norilsk and were developing drinks with local products. The festival was cancelled due to the pandemic, but the recipe was waiting for its time.
We were noticed by the Norilsk Development Agency – they needed something special for an exhibition in Moscow. In Moscow, our novelties were well received, and SPIEF gave us additional confidence. We understood that we should develop the format of an Arctic Coffee Shop featuring local products.
We are now working on new recipes and creating a new menu. We already make chocolate with venison and spices, and now we are developing a technology for making deer moss chips. New products have brought us new customers – the tourists.
We were getting ready for a food festival in Norilsk and were developing drinks with local products. The festival was cancelled due to the pandemic, but the recipe was waiting for its time.
We were noticed by the Norilsk Development Agency – they needed something special for an exhibition in Moscow. In Moscow, our novelties were well received, and SPIEF gave us additional confidence. We understood that we should develop the format of an Arctic Coffee Shop featuring local products.
We are now working on new recipes and creating a new menu. We already make chocolate with venison and spices, and now we are developing a technology for making deer moss chips. New products have brought us new customers – the tourists.
Support for young people and regional expansion
Do you consider how your business impacts the community? Does it have a social mission?
If you love what you do, you will support your colleagues in one way or another. Let me give you an example from the World of New Opportunities. This year, the program trained young people, including a boy named Artiom who wanted to open a coffee shop. He had no experience, so I took him on as a mentor.
Do you have ambitions for growth? Perhaps expansion into new regions?
We need to “roll up” the Arctic Coffee Shop format and “test” it. Most likely, we will create a franchise so that similar coffee shops can be opened in other regions. Any region, even Moscow or Sochi.
What advice can you give to people who are considering starting their own business?
Only one advice: The sooner you start, the better. Now I think I started a little late, I was waiting for something.
If you want to open a coffee shop, you have to work as an employee and learn the business from the inside. You need to learn how to deliver the service and understand how to improve it. It’s a good way to learn not to count on quick successes and to work methodically toward your dream. Jump in and fear nothing!
If you love what you do, you will support your colleagues in one way or another. Let me give you an example from the World of New Opportunities. This year, the program trained young people, including a boy named Artiom who wanted to open a coffee shop. He had no experience, so I took him on as a mentor.
Do you have ambitions for growth? Perhaps expansion into new regions?
We need to “roll up” the Arctic Coffee Shop format and “test” it. Most likely, we will create a franchise so that similar coffee shops can be opened in other regions. Any region, even Moscow or Sochi.
What advice can you give to people who are considering starting their own business?
Only one advice: The sooner you start, the better. Now I think I started a little late, I was waiting for something.
If you want to open a coffee shop, you have to work as an employee and learn the business from the inside. You need to learn how to deliver the service and understand how to improve it. It’s a good way to learn not to count on quick successes and to work methodically toward your dream. Jump in and fear nothing!
July, 2024
