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JAMnews
25-07-2025
- Business
- JAMnews
Restaurant boom in Armenia: business responds to demand
Restaurant boom in Armenia 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. Follow us – Twitter | Facebook | Instagram Restaurant boom in Armenia


AllAfrica
11-04-2025
- Business
- AllAfrica
US aircraft carriers adrift as China surges at sea
Production delays, rising threats and shrinking numbers are putting the US's traditional aircraft carrier dominance on a knife's edge just as China surges ahead at sea. This month, in a hearing before the US Senate Armed Services Committee, US Navy officials acknowledged schedule setbacks for two Ford-class aircraft carriers under construction. The USS John F Kennedy (CVN-79), which is almost 95% finished, is under heavy pressure to meet its scheduled delivery date of July 2025. This pressure is mainly due to Advanced Weapons Elevators and the Aircraft Launch and Recovery Equipment issues. While the initial design issues that plagued the class have been resolved, as demonstrated by the USS Gerald R Ford's (CVN-78) successful 2024 deployment, production-specific hurdles continue to delay progress on CVN-79. Meanwhile, construction of the USS Enterprise (CVN-80), currently 44% complete, is also running behind schedule. The delay is attributed to late-sequenced critical material, which US Navy officials say will 'significantly delay delivery past the contractual date.' The US Navy works closely with shipbuilder Huntington Ingalls Industries-Newport News Shipbuilding (HII-NNS) and critical path vendors to mitigate the schedule risks. Although no updated delivery dates were given for either ship, the testimony emphasized that insights gained are being utilized to enhance operational efficiency in CVN-80 and the USS Doris Miller (CVN-81). Despite the persistent construction obstacles, the US Navy is concentrating on reaching the quickest route to having a combat-ready aircraft carrier, crew and air wing. Underscoring the urgency of having the CVN-79 and CVN-80 ready as soon as possible, Tal Manvel mentions in a February 2025 Proceedings article that the Nimitz-class carriers urgently need replacement as they approach decommissioning due to limitations in power, space and weight highlighted during a 1995 system analysis. Manvel warns that retiring the USS Nimitz (CVN-68) in 2026 and the USS Dwight D. Eisenhower (CVN-69) in 2027—without promptly initiating the next Ford-class dual buy for CVN-82 and CVN-83—will reduce the fleet below the legally required 11 aircraft carriers and disrupt shipyard efficiency by creating a costly seven-year production gap. Despite debates over their relevance, the US's continued building of aircraft carriers ensures their place as a centerpiece of force projection, regardless of their growing vulnerability. Underscoring the point, Mark Cancian and other writers mention in a January 2023 report for the Center for Strategic and International Studies (CSIS) think tank that the US lost two carriers in a simulation of a US-China conflict over Taiwan. Further, Steve Balestrieri mentions in a March 2025 article for 1945 that while China and Russia have hypersonic missiles that can sink US carriers, the US has no effective defense against such weapons. Balestrieri adds that stealthy conventional submarines can evade a carrier's defenses, possibly sinking the latter. In line with those threats, Cancian and others note that the US only avoided losing its carriers in optimistic Taiwan war scenarios when it didn't push its fleet forward as a deterrent signal. Nevertheless, US carriers may still have a role to play in such a conflict, provided they are kept out of harm's way. In a February 2022 article for The American Sea Power Project, Thomas Mahnken proposes that carriers could be part of an 'outside force' in the Second Island Chain that acts as a strategic reserve to prevent China from projecting power beyond the First Island Chain while supporting US offensive operations. Alternatively, Trevor Phillips-Levine and Andrew Tenbusch mention in a July 2024 article for the Center for International Maritime Security (CIMSEC) that the US could use its carriers as a 'fleet-in-being' decoy to tie down significant Chinese resources and weapons that could otherwise be used against the US in a war over Taiwan. While the US may have the world's largest carrier fleet at 11 ships, that number might not be enough for great power competition with China. Kyle Mizokami mentions in a March 2021 article for Popular Mechanics that during the Cold War, the US had 13 to 15 carriers, compared to today's minimum mandated strength of 11 ships. Mizokami points out that the rule of thirds typically governs carrier deployments—one-third of the fleet is on patrol, one-third is returning from patrol, and one-third is undergoing repair and maintenance. With the US having just 11 carriers, he says four might be available for operations, but that number could surge to five or six in an emergency. As of April 2025, Newsweek reports that the US has three carriers deployed in the Pacific: the USS George Washington (CVN-73), based in Japan; the USS Nimitz (CVN-68), moving into the Western Pacific to replace the USS Carl Vinson (CVN-70); and the USS Abraham Lincoln (CVN-72), operating in the Eastern Pacific. Mizokami mentions that the US Atlantic and Pacific carrier fleets are already overstretched and that adding a 12th carrier could alleviate some of the strain. He also suggests that the US could decide that it doesn't need carriers in certain regions all the time and scale down deployments, but that risks degrading deterrence against potential adversaries such as Iran and China. But could the US put 12 carriers at sea? In an August 2024 article for The National Interest (TNI), Peter Suciu mentions that a Ford-class carrier costs around US$13.3 billion and requires hundreds of millions of dollars to maintain. Suciu notes that carriers' complexity and cost make them tempting targets, and if they were to be damaged or lost in combat, that would mean a waste of billions of dollars and seriously impair US force projection capabilities. Moreover, a report from the US Congressional Research Service (CRS) from January 2025 indicates that although the US Navy plans to ultimately deploy 12 aircraft carriers as a part of its projected 381-ship battle force fleet, there are considerable obstacles to reaching and maintaining this target. According to the report, the US Navy's FY2025 30-year shipbuilding plan projects reaching 12 carriers in only three years within the FY2025–FY2054 timeframe—2025, 2029, and 2032—with the carrier fleet dropping to nine by 2047 in some scenarios. It notes that barriers include budget constraints, delays in ship construction and industrial base limitations. While the US struggles with building and maintaining its carriers, China seems to be progressing apace. Kris Osborne mentions in a March 2025 article for 1945 that China, with the world's largest navy, now has three carriers in the Pacific and is building a fourth, the Type 004, which could be its first nuclear-powered carrier to rival or even be larger than the US Ford class. Osborne notes that while China faces the same arguments regarding the utility of carriers in modern naval warfare, the construction of the Type 004 shows that it still sees these ships as relevant. He mentions China's development of ship-based defenses and intelligence, surveillance and reconnaissance (ISR) capabilities to detect incoming anti-ship missiles, underscoring its military planners' belief that carriers could provide unique and extremely valuable advantages in war.