“A Queue at the Restaurant Doesn’t Mean the Business Is Making Money” – Mafia Group Founder on Reinventing Her Restaurant Empire

Oksana Seredyuk, the founder of one of Ukraine’s most recognizable restaurant chains, has shared candid insights about the challenging realities of the hospitality industry during wartime. In a recent interview, the entrepreneur behind Mafia Group discussed the ongoing transformation of her flagship brand, difficult business decisions, and the potential impact of proposed tax changes on individual entrepreneurs (FOPs) that could reshape Ukraine’s entire service sector.

The Ukrainian restaurant industry has undergone dramatic shifts since February 2022, with many establishments forced to close, relocate, or completely reinvent their business models. Mafia Group, which once operated dozens of locations across Ukraine serving its signature pizza and sushi combinations, has been navigating these turbulent waters while attempting to stay relevant in a fundamentally changed market. Seredyuk’s decision to rebrand several Mafia locations into a new concept called Rumbabar represents a strategic pivot that reflects broader trends in consumer preferences and economic realities.

Perhaps the most striking revelation from Seredyuk concerns the deceptive nature of apparent success in the restaurant business. “A queue at the restaurant doesn’t mean the business is making money,” she explained, highlighting a common misconception among those outside the industry. This observation carries particular weight coming from someone who has spent years building a restaurant empire from the ground up. The statement underscores the complex economics of hospitality – where high foot traffic must be balanced against rising operational costs, supply chain disruptions, labor expenses, and the significant overhead that comes with maintaining physical locations in premium urban areas.

The closure of “Igra s Ognem” (Game with Fire) on Khreshchatyk, Kyiv’s main thoroughfare, serves as a concrete example of these economic pressures. Khreshchatyk has historically been considered prime real estate for restaurants and retail, commanding premium rents while offering maximum visibility and foot traffic. However, the wartime economy has fundamentally altered these calculations. With reduced tourism, changed consumer spending patterns, and the exodus of many residents from the capital during the early months of the invasion, even prestigious locations no longer guarantee profitability. The decision to shutter the establishment demonstrates that no location is immune to the harsh mathematics of wartime business operations.

The transformation from Mafia to Rumbabar reflects a broader industry trend toward concept refreshment and market repositioning. The original Mafia brand, established in the mid-2000s, became synonymous with accessible fusion cuisine that combined Italian and Japanese elements – a concept that was innovative at its launch but has since become commonplace in Ukraine’s increasingly sophisticated dining scene. By introducing Rumbabar, Seredyuk appears to be targeting a different demographic or dining occasion, potentially focusing on the bar and entertainment segment that has shown resilience among younger urban consumers seeking social experiences despite economic uncertainties.

One of the most significant concerns raised by Seredyuk relates to proposed changes in taxation for individual entrepreneurs, known as FOPs (Фізична особа-підприємець) in Ukraine. This simplified taxation system has been a cornerstone of Ukraine’s small business ecosystem, allowing millions of Ukrainians to operate as independent contractors with reduced tax burdens and minimal bureaucratic requirements. The restaurant and service industries have particularly relied on FOPs for staffing flexibility. Any significant changes to this system could dramatically increase labor costs across the sector, potentially forcing many establishments to reduce staff, raise prices, or close entirely. Industry experts estimate that such changes could affect hundreds of thousands of workers in hospitality alone.

The broader context of Ukraine’s wartime economy makes these business decisions even more consequential. The hospitality sector serves not only as an economic engine but also as a crucial element of normalcy for civilians living through an ongoing conflict. Restaurants, cafes, and bars have become spaces where Ukrainians can momentarily escape the stress of war, maintain social connections, and experience something approaching normal life. Entrepreneurs like Seredyuk face the unique challenge of balancing business viability with this important social function, all while navigating power outages, air raid sirens, and the constant uncertainty that defines life in a country at war.

Looking ahead, Seredyuk’s candid assessment of the industry suggests that survival in Ukraine’s restaurant sector will require continued adaptation, realistic expectations about profitability, and careful attention to regulatory changes. Her willingness to make difficult decisions – closing underperforming locations, rebranding established concepts, and speaking openly about industry challenges – offers a template for other business owners navigating similar circumstances. As Ukraine continues to fight for its future, entrepreneurs like Seredyuk represent the resilience and pragmatism that will be essential for economic recovery, whenever peace finally arrives.