A Belgian Business Model for Making Dough.

(From The Moscow Times)

Ian Zilberkweit understands how important bread has always been to Russians, and he is basing the success of his business here on the belief that he can do it better.

On Monday, Zilberkweit will open a fifth Le Pain Quotidien outlet, in Gorky Park, as he and his Russian partner, Gohar Gargossian, embark on a multimillion-dollar plan to open a new location every six to eight weeks for the next three years.

Going up against such ubiquitous cafe chains as Shokoladnitsa and Coffee House might seem daunting. But Zilberkweit believes that Le Pain Quotidien, a Belgium-based bakery and cafe franchise, has the formula for success. The full tables and repeat customers at his cafes suggest that he may be right.

"The market is full, so we will have to compete on quality," said Zilberkweit, an American who has spent most of his life in Germany and Britain.

The quality Zilberkweit speaks of is a mix of artisan breads and organic-styled dishes at reasonable prices served in bakeries with environmentally friendly interiors at high-end locations around Moscow.

"This is a branded restaurant and bread chain built around a theme," said Charlotte Philipps, head of AIG Interros Russia Century Fund, a private equity fund, which does not have a financial interest in Le Pain Quotidien but monitors the consumer market looking for bigger-ticket investment opportunities.