Restaurant boom in Armenia: business responds to demand
New restaurants, bars, cafés, diners and canteens are frequently opening in Yerevan and Armenia's regional tourist hubs. Some existing restaurants are changing their concepts, offering new menus, different atmospheres, and modern service approaches.
Food service businesses rarely shut down or declare bankruptcy, which signals strong demand.
So, how did this demand emerge, who are the primary patrons, and why have services become more expensive? Patrons, a marketing expert, and the head of the NGO 'Restaurant Association' weigh in.
'A country of unique flavours'
Lusine and Manvel have been living in Moscow for twelve years but return to their homeland at least twice a year. They say one visit is usually devoted to seeing friends and relatives, the other to dining out. They traditionally organise tasting tours in Yerevan, Gyumri, Dilijan, and Sevan. This year, they decided to explore new culinary offerings in the Lori region.
'Food in Armenia has a special taste. And when you combine that with high-quality presentation, carefully selected crockery, music, and a welcoming staff, dining out becomes a real celebration. For me, a meal is not only a biological necessity – it's also about mood, emotion, and memory,' says Lusine.
She has a culinary background, which helps her both in grocery shopping and experimenting in her own kitchen, as well as in evaluating restaurant offerings:
'I believe Armenia is excellent when it comes to working with meat. Various techniques are used in preparing meat dishes. And there's a secret to the impressive flavour – it's the spices and local herbs: dill, coriander, basil. When making salads, chefs aren't afraid of interesting, unconventional combinations either.'
Manvel adds that while there are interesting restaurants in Russia they enjoy visiting as a family, in Armenia they appreciate the blend of atmosphere and the creative presentation of delicious dishes.
'We pay particular attention to interior design and music as well. Over the past three years, the restaurant business in Armenia has undergone significant changes. This year alone, we've visited ten establishments. Everywhere we went, the music was well chosen, and we enjoyed the vibrant décor,' he says.
Many of their acquaintances have also visited Armenia for a second or third time with their families – specifically for gastronomic tourism. They note that restaurant prices in Armenia are not as affordable as, for example, in neighbouring Georgia. At the same time, they find the offerings in Armenian restaurants more diverse and aesthetically refined.
'You could say Armenia already has everything it needs for developing gastronomic tourism – excellent restaurants across the country, hotels and guesthouses of various standards, and warm, welcoming service. What remains is to brand it and present it to the world,' Lusine asserts.
'High prices are justified'
Gohar Alumyan is a restaurant marketing expert. She comments on the state of the sector without naming the establishments she works with:
'Our restaurants are very well segmented. Each has its own clientele and operates in a healthy competitive environment. However, not all venues that present themselves as high-end restaurants truly offer the menu, atmosphere or presentation that would justify an average spend of 40,000–50,000 drams ($105-130) per person.'
According to her, most patrons of mid- to high-end restaurants in Armenia are tourists, embassy staff, or local residents with high incomes.
This clientele, Gohar says, has high expectations. They demand top-quality service, distinctive menus, live music, and premium crockery:
'To avoid losing customers, restaurants respond quickly to demand and maintain standards that meet these expectations. The situation is quite different in the lower-priced segment, where there are issues around food quality, preparation standards, and service culture.'
Gohar notes that restaurant prices in Armenia vary widely. There are places where the average spend per person is around 40,000 drams ($105), and others where it's just 3,000 drams (less than $8).
She explains that high-end restaurants make substantial investments in:
renting or purchasing premises,
retraining staff,
marketing,
premium ingredients,
high-end kitchen equipment,
tableware.
'And that's not even the full list. These expenses inevitably impact final pricing. Every restaurant has its own niche. If they're not shutting down, it means sales are generating sufficient profit. I travel a lot and can confidently say that Armenia has many restaurants and hotels offering top-class service,' she adds.
'Yerevan stays up late – and that benefits the restaurant trade'
Ashot Barseghyan, director of the NGO 'Restaurant Association', says the sector has not only developed in recent years, but has also matured. Businesses have invested heavily and are fully capable of meeting current demand.
'Armenia has natural advantages – 300 sunny days a year, delicious fruits and vegetables, and a distinctive cuisine. Between 2016 and 2018, growing social activity and a rise in foreign visitors created strong demand, which entrepreneurs responded to quickly. Understandably, this activity dropped during the COVID-19 pandemic and the 44-day war. Afterwards, the arrival of Russian relocants brought new energy to the sector and led to the opening of new and distinctive restaurants,' Barseghyan explains.
He acknowledges that some of those establishments closed after many Russians left. However, those with an engaging format and original offerings have continued to operate.
'Yerevan stays up late. That's just the city's natural rhythm. For half the year, the weather is hot and sunny. People work in the mornings and afternoons, but due to the heat, many avoid going outside. Activity picks up in the evenings, around 7 or 8pm. People go out for a walk, have dinner somewhere, enjoy a coffee or a glass of wine. They return home at midnight or even later,' says Ashot Barseghyan.
He notes that tourists also adapt to the local rhythm. During the day, they visit museums and cool wineries; in the evenings, they head to restaurants.
'Guests continue their daytime excursions in Yerevan's safe night-time environment. For the restaurant industry to grow, it's important to understand which countries' tourists are more willing to spend. For example, most Europeans prefer budget options. I can say with certainty that Russians enjoy visiting expensive restaurants, ordering multiple dishes, consuming a lot of drinks, and shopping.
In that sense, we have great untapped potential. Wine and winemaking could multiply tourist flows from Russia. It would be worth launching aggressive marketing campaigns in this direction – including with state support,' he suggests.
According to Barseghyan, prices have risen in recent times. Whereas a meal for two in a Yerevan restaurant might have cost 20,000 drams ($52)) previously, it would now be double that.
'This price increase is due to higher taxes. Since January 2025, taxes have risen 2.5 times. As a result, prices had to go up – otherwise, there would have been an impact on quality, staff choices, and other factors,' he explains.
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'Food in Armenia has a special taste. And when you combine that with high-quality presentation, carefully selected crockery, music, and a welcoming staff, dining out becomes a real celebration. For me, a meal is not only a biological necessity – it's also about mood, emotion, and memory,' says Lusine. She has a culinary background, which helps her both in grocery shopping and experimenting in her own kitchen, as well as in evaluating restaurant offerings: 'I believe Armenia is excellent when it comes to working with meat. Various techniques are used in preparing meat dishes. And there's a secret to the impressive flavour – it's the spices and local herbs: dill, coriander, basil. When making salads, chefs aren't afraid of interesting, unconventional combinations either.' Manvel adds that while there are interesting restaurants in Russia they enjoy visiting as a family, in Armenia they appreciate the blend of atmosphere and the creative presentation of delicious dishes. 'We pay particular attention to interior design and music as well. Over the past three years, the restaurant business in Armenia has undergone significant changes. This year alone, we've visited ten establishments. Everywhere we went, the music was well chosen, and we enjoyed the vibrant décor,' he says. Many of their acquaintances have also visited Armenia for a second or third time with their families – specifically for gastronomic tourism. They note that restaurant prices in Armenia are not as affordable as, for example, in neighbouring Georgia. At the same time, they find the offerings in Armenian restaurants more diverse and aesthetically refined. 'You could say Armenia already has everything it needs for developing gastronomic tourism – excellent restaurants across the country, hotels and guesthouses of various standards, and warm, welcoming service. What remains is to brand it and present it to the world,' Lusine asserts. 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The situation is quite different in the lower-priced segment, where there are issues around food quality, preparation standards, and service culture.' Gohar notes that restaurant prices in Armenia vary widely. There are places where the average spend per person is around 40,000 drams ($105), and others where it's just 3,000 drams (less than $8). She explains that high-end restaurants make substantial investments in: renting or purchasing premises, retraining staff, marketing, premium ingredients, high-end kitchen equipment, tableware. 'And that's not even the full list. These expenses inevitably impact final pricing. Every restaurant has its own niche. If they're not shutting down, it means sales are generating sufficient profit. I travel a lot and can confidently say that Armenia has many restaurants and hotels offering top-class service,' she adds. 'Yerevan stays up late – and that benefits the restaurant trade' Ashot Barseghyan, director of the NGO 'Restaurant Association', says the sector has not only developed in recent years, but has also matured. Businesses have invested heavily and are fully capable of meeting current demand. 'Armenia has natural advantages – 300 sunny days a year, delicious fruits and vegetables, and a distinctive cuisine. Between 2016 and 2018, growing social activity and a rise in foreign visitors created strong demand, which entrepreneurs responded to quickly. Understandably, this activity dropped during the COVID-19 pandemic and the 44-day war. Afterwards, the arrival of Russian relocants brought new energy to the sector and led to the opening of new and distinctive restaurants,' Barseghyan explains. He acknowledges that some of those establishments closed after many Russians left. However, those with an engaging format and original offerings have continued to operate. 'Yerevan stays up late. 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Wine and winemaking could multiply tourist flows from Russia. It would be worth launching aggressive marketing campaigns in this direction – including with state support,' he suggests. According to Barseghyan, prices have risen in recent times. Whereas a meal for two in a Yerevan restaurant might have cost 20,000 drams ($52)) previously, it would now be double that. 'This price increase is due to higher taxes. Since January 2025, taxes have risen 2.5 times. As a result, prices had to go up – otherwise, there would have been an impact on quality, staff choices, and other factors,' he explains. Follow us – Twitter | Facebook | Instagram Restaurant boom in Armenia
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'If only the Azerbaijan–Nakhichevan route opens, Armenia's blockade will deepen' — Opinion
Armenian needs full lifting of blockade Intense debate continues in Armenia over the recent U.S. proposal to unblock regional transportation routes, as well as over Prime Minister Nikol Pashinyan's related statements. The Prime Minister noted that if the road were to be outsourced, a company could be established to attract investment and develop the necessary infrastructure. At the same time, Pashinyan reiterated his government's own initiative — the 'Crossroads of Peace' project — stating that Armenia envisions the unblocking process within this framework, which he described as having 'tremendous investment potential.' The parliamentary opposition, however, argues that the current plan does not aim to end the blockade of Armenia, but merely to open a transport corridor connecting mainland Azerbaijan with its exclave of Nakhichevan — a move they view as yielding to demands from Azerbaijan and Turkey. 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He added that reciprocity presents a particular challenge: 'There is a railway on Azerbaijani territory, but there is none on ours.' He emphasized that the investment component of the program is especially crucial for the Armenian side. The Nakhichevan–Azerbaijan route: Main issue or subtopic? The parliamentary opposition is under the impression that the U.S. proposal does not entail the unblocking of all regional communications. Opposition members are convinced that it concerns only the establishment of a land corridor connecting Azerbaijan with its exclave of Nakhichevan. Anna Grigoryan, a deputy from the 'Hayastan' faction, stated that Washington's proposal does not imply an end to Armenia's blockade or an expansion of its economic opportunities: 'This is merely satisfying the demands of Azerbaijan and Turkey. If we narrow the question down to whether we agree to have the road controlled by an American organization, I must ask: how did the discussion about unblocking the region come to focus on the Meghri road and who will control it?' At a press conference, journalists asked Prime Minister Pashinyan whether all roads would be unblocked simultaneously. The Prime Minister left this question unanswered. However, in March 2025, he gave a clear response on the matter. 'Connecting Azerbaijan to Nakhichevan through Armenian territory is a subtopic of the broader issue of unblocking regional transport routes. Armenia has never obstructed this matter,' Pashinyan asserted in an article dedicated to the region's unblocking. Comment According to political analyst Areg Kochinyan, the publicly available information and the Prime Minister's remarks indicate the following: 'The U.S. proposal envisions a private company receiving the right to build specific infrastructure — including highways, railroads, and gas pipelines — on designated plots of land. This would be carried out without transferring ownership of the land or altering its legal — let alone international — status. In essence, it would amount to a contractual obligation taken on by the contractor.' The second stage, he explained, would involve the operation, maintenance, and management of the infrastructure. The third stage concerns ensuring security along the road and rail lines. Kochinyan sees the proposal not only as an example of American capital investment, but as a tangible Armenian-American initiative. 'In theory, if a security firm — foreign or even local, but with Armenian ownership — were to be contracted to ensure road safety, I see no issue with that. There is nothing inherently dangerous in such an arrangement,' he said. Drawing from the Prime Minister's remarks, political analyst Areg Kochinyan concludes that no aspect of the project would fall outside the jurisdiction of Armenia's police and security services. These agencies, he says, would have full authority to intervene and 'enforce legal order' as needed. 'Moreover, as I understand it, the route will remain under Armenian customs and passport control,' he added. Kochinyan believes the proposal warrants continued discussion. He is convinced that European countries should play a role in its implementation and suggests that partner nations of Armenia. As well as other regional players, may also participate. He points to Azerbaijan's experience in carrying out large-scale infrastructure projects — including oil and gas pipelines and railways — as a relevant precedent, noting that countries such as the United States, the United Kingdom, Italy, and Japan were involved in those initiatives. 'For example, a corporation or consortium could be established, with investors first receiving certain guarantees from international financial institutions. In line with their investment shares, they would take part in governance and earn returns. This could be managed through a board of directors,' he explained. In Kochinyan's view, the American proposal is significantly more favorable and attractive for Armenia than the Russian alternative. He recalls the trilateral statement signed in November 2020, which ended the Second Karabakh War, and Moscow's subsequent interpretation of its terms: 'The Russian proposal was much stricter and more dangerous in terms of violating Armenia's borders. According to Russia's reading of the agreement, armed Russian security forces were to be stationed along the route — with FSB personnel deployed every 100 meters.' He emphasizes that the Lachin Corridor was intended to mirror the route through Meghri in Armenia's south. However, with the exodus of Armenians from Nagorno-Karabakh, the geopolitical landscape has shifted. Turkey and Azerbaijan now insist on a step-by-step approach: if Armenia wishes to see its borders with Turkey and Azerbaijan reopen, then the first step must be the opening of the road linking Nakhichevan with the rest of Azerbaijan. Kochinyan is adamant that Yerevan should focus not on this single road, but on its broader 'Crossroads of Peace' project and the full unblocking of regional infrastructure: 'If this road does not automatically lead to the opening of all other routes, then the entire conversation is irrelevant for Armenia. Under such circumstances, the blockade will only deepen,' he concluded. Follow us – Twitter | Facebook | Instagram Armenian needs full lifting of blockade
