The Grain of Success
Coffee is a magical elixir that has accompanied humanity since the first beans were brewed. Its taste and aroma are just as important as its ability to bestow vigour and inspiration. It has become an integral part of life for many people, and the coffee aficionado community exists thanks to the dedication of business-savvy coffee samurai like Konstantin Harbuz, co-founder of the successful brand Roasters Specialty Coffee in Dubai.
I'm an ordinary guy from a simple family who has focused on self-development and learning. My businesses have always been closely related to food products. This is exactly how I started my business in Dubai, dealing with it from all possible angles: export, import, sales, wholesale supplies, full cycle 3PL logistics. The only thing I didn't do was build a factory, and thank God it didn't come to that.
During the COVID pandemic, when we needed to unite to survive and become stronger, we merged with another distribution company. In a few years, we grew into a national distribution, converting all our experience into a large company, which I sold last year. I dreamt of getting out of this business, no longer seeing its further development, but selling it was difficult, as the niche is quite specific. In the end, we were absorbed by a large competitor.
I constantly try to come up with something new and capitalise on having a group of companies. One or two times a year, something from the portfolio is sold. I recently sold a financial company, freeing up my mental space for new projects.
I have been living in Dubai for 11 years now. Today, I have several companies, one of which is the Roasters coffee shop chain, co-owned with partners. I am a huge fan of quality products, and when it comes to coffee, I am principled about making the best in the best locations. Roasters has evolved from my hobby into a full-fledged business and a relatively large independent company. This is my second coffee enterprise; I sold my first one at the end of 2020. Following that, I spent a considerable amount of time searching for genuinely high-quality coffee in the city. Ultimately, I decided to import the finest beans from around the world and prepare the coffee myself. We rented a large commercial villa in the Jumeirah area on Al Wasl and established one of the largest coffee houses at that time — a three-storey venue with a rooftop, VIP rooms, roasting facilities, offices, and storage areas. This year, we are undertaking an impressive renovation of the design. The Al Wasl location has already become iconic, hosting numerous events. It seems to me that all business communities in Dubai have held significant events at our venue at least a few times and frequently rent our VIP rooms.
We travel the globe, participate in auctions, and purchase select varieties of beans from all countries within the coffee belt, roasting them ourselves. At one point, our villa housed coffee beans worth over a million dollars. Friends would jest, asking if I was indeed only bringing coffee from Colombia, without hiding anything else in the sacks. We have many amusing stories related to working in the hospitality industry and managing a diverse staff from various nationalities.
We do not attract external investors or loans; the company develops organically through its own reinvestments, opening 3-4 new establishments annually. It is an aesthetically pleasing business that I am deeply passionate about. My family is also involved; my wife is one of the company's top managers, making numerous decisions and helping me streamline processes. Her work involves creativity, and I am pleased that she is doing what she loves. We have been successfully developing this brand since 2021.
Currently, we have five establishments and two production facilities — coffee roasting at the villa in Jumeirah and a central kitchen where we produce confectionery items. In August, we are opening our sixth establishment, with another four to be completed by the end of the year, totalling ten in the UAE. We have secured prime locations in Dubai and may add a couple more top-tier spots by 2025. We intend to remain a boutique company and do not plan to expand this brand further here.
To ensure business growth, one must master all available tools. Together with Ivan Kroshniy, we have a group of companies called IO Management Group, which operates in several directions and holds around ten licences. Within the group, there is VIP consulting, where we open complex bank accounts and arrange golden visas. Additionally, there is a flipping fund where we, along with like-minded individuals and co-investors, purchase old properties and undertake their renovation. The group of companies is rapidly expanding.
This year, we are launching a new financial company, Salam Dirham. Initially, we aimed to enter the microfinance business and spent over a year on this endeavour, but we encountered regulatory challenges within this sector in the UAE. Legal microfinance businesses are virtually non-existent here, and we are not inclined to operate in a grey area. Consequently, we have redirected our focus towards B2B loans for small and medium enterprises, with plans to commence operations in the autumn of 2024.
Additionally, I have a personal investment company, Crystal Planet Holdings. Under this brand, we will be launching several new projects this year, details of which will be disclosed later.
Another crucial element is our cohesive management team, which has been forged through years of collaboration on various projects. Virtually all departments — marketing, HR, accounting, PR, project management — are in-house. We do not engage in external business ventures and invest solely in our own projects, with the aim of fostering their development.
Roasters is a successful business venture; several of our locations have recouped their investments in less than two years, with a return on capital of 50-70%, which is an excellent result. However, we are not driven by profit alone; there is a deeper philosophy at play. Our main ethos is quality. We source the finest coffee from 20 countries and consider it unacceptable to roast or prepare it poorly. This business was created not for large capitalisation but for people like us to enjoy exceptional coffee. In each coffee-growing country, there is an internal tournament called the Cup of Excellence for the highest quality coffee beans. The best specialty coffee is grown under specific conditions and evaluated by the Specialty Coffee Association. The quantity of beans that win these tournaments is limited, sometimes as little as 100-200 kg globally. Our mission and concept are built around sourcing these exceptional beans and their producers. Combined with our interiors, extensive breakfast options, unique desserts, and of course, our team of professionals, this makes us one of the market leaders in the UAE.
Our concept is akin to tasting a fine wine, revealing a whole spectrum of notes, aromas, and flavours. We help our guests develop their taste buds, and many are surprised that coffee can be so nuanced. One can savour specialty coffee for 30-40 minutes rather than just drinking it for a quick boost. The maximum flavour and aroma are unlocked through manual brewing — in this, we are experts.
Our location in Dubai Mall has become an excellent lever for scaling up, with someone attempting to buy it out every year. We launched the Roasters NFT Café in JBR — a hub for everyone involved in NFTs and crypto. Here, proactive guests, celebrities, and stars enjoy breakfast and coffee. In 2023, we opened new branches in Creek Harbour and Boulevard Downtown — both locations are exceptionally effective. Dubai is an ideal place for business, and it becomes more attractive for living each year. Of course, there are some downsides, but they are rather mundane and not worth mentioning.
There is such a concept as an "aha moment" — when you have a revelation. At the very beginning, Dubai offers many emotions and impressions. Having lived here for so many years, I can no longer be impressed by the fountains and Burj Khalifa, even though I once lived there. I continue to be amazed by the people who come here, the quality of this city, and its growth. The economy and GDP of this country and city grow every year, and we grow along with them. I really hope that the safety, environment, and sense of comfort we experience here will last as long as possible.
Even in the most prosperous place on Earth, burnout can happen, but it can be prevented. When I need to recharge, I read a lot of books and travel frequently. I am inspired by my wife, family, and simple things: delicious coffee, pleasant people, interesting books, beautiful places. I am quite a disciplined person and try to recharge my batteries before they run out.
The year 2022 was exceedingly challenging for me. In one of my ventures, there was a concerted effort to push me out of the market, leading to an aggressive smear campaign against me in Dubai. In another business, a substantial sum of our client's money became stuck in an account with a counterparty. Meanwhile, in a third venture, we faced six lawsuits within the span of three months. These are mere trifles. I have learned to handle such situations and crises with equanimity; problem-solving has become routine for me. I relish the pursuit of justice — it even inspires and energises me. In 2022, we won all six legal cases — two of them without hiring solicitors, as I enjoyed presenting the defence and preparing everything myself.
I am motivated by long-term goals and plans, and the reputation we are building. I have spent a third of my life in Dubai; my youth unfolded here, and I have no intention of leaving. Therefore, everything we plan for the long term, the goals we set for ourselves, and how we achieve them — this is the primary motivation to keep moving forward and derive pleasure from the process.
Personal qualities are also tools for success. My main trait as an entrepreneur is the ability to negotiate and establish operational processes. I sell ideas and businesses, so even with the cafés, my task is to negotiate with developers and secure the best locations for business. Sometimes this works out so well that there are no competitors nearby, as is the case on the boulevard in Downtown. I enjoy interacting with people, but each year I find myself with less energy for it. I want to reduce wasted time while valuing time more.
Recently, we visited Japan, and although I wasn't particularly fond of it overall, I was inspired by how masterfully Japanese artisans work at their craft, baristas for example. Many of them are over 50, yet they spend their entire lives honing their skills, lovingly and persistently brewing coffee according to a unique recipe for each type of bean. This greatly inspired me — how people can devote their entire lives to one pursuit, not chasing money or career advancement, but simply loving their product and what they do. Such people, who approach their work with great love and create something beautiful without sparing themselves — they are the heroes of our time, the heroes of the future. They inspire me.
I won't announce our plans just yet, but this year we will certainly launch at least two new offline projects. We will continue to delight our guests with coffee and open new establishments. We have plans for four more cafés in interesting locations with beautiful designs. We strive to anticipate each person's expectations and deliver the necessary amount of dopamine through our products, sweets, and delicious coffee. This year promises to be very exciting. As for the coffee business, though I am often associated with it, I do not see it as my primary focus and do not publicise it much. In this regard, I am quite conservative. I believe that the owner should remain in the background while the business thrives through quality; hence, I quietly enjoy my coffee in my establishments somewhere in a corner as I make plans for the future.
