INTERNET CAFE BUSINESS IN GEORGIA

By. Nato Kirtskalia

No one argues that Internet is an inherent part of new epoch. Computerisation process has started in Georgia, though late.

Now in each district and city street there is, at least, one (often more than one) cafe. It is noteworthy that each of them has its own clients. This business is a good source of income for clever businessmen. But we should point out to the fact that Tbilisi is not yet ready for founding such establishments.
First of all, all places where one can enjoy Internet service are called Internet cafes. The idea is implied by the name itself. It is a place where one can use Internet service and drink tea or coffee. However, eventually, this approach was not justified, at least, in Georgia. Those who like tea and coffee still prefer to spend time in usual cafes, but those who come to Internet-cafes, mainly, wish to make use of Internet service. This was the reason of why many Internet-cafes were closed. Perhaps, because of this internet clubs and computer centres are opened more often than Internet cafes. The wish and necessity to use Internet gradually became stronger. Today, students and business people use Internet. Naturally enough, most of them do not have computers at home, and Internet cafe is the best and comparatively cheaper way to enjoy Internet service. What are the main reasons of growing popularity of Internet? First of all, Information that turned the expression “time is money” into “information is money”. Any person can quickly find information on Internet. The second reason of Internet’s gorwing popularity was communication that can easily be established with any person via Internet. The best way for it is e-mail. And, finally, a great number of entertaining, the so-called online games, that attract the young and comparatively little users. These three main components make Internet attractive for all kinds of customers. Therefore, this business becomes profitable for all owners of Internet cafe.
We speak to Mr. George Metskhovrishvili, the representative of one of Internet clubs “Comp-line”.
– Where did the idea of establishing Internet cafes come from and what way have these establishments passed till present?
– The idea of establishing Internet cafes has existed for a long time since the beginning of computerisation process in Georgia, especially after the appearance of Internet. Naturally enough, there arose the necessity for many people to use Internet. Demand for Internet can easily be explained: there is a great amount of information, contacts and besides, much entertainment. However, proceeding from the existing reality, not everyone can afford a computer. Besides, our telephone stations are especially old and the line is bad. Thus, the idea of establishing Internet cafes came into being. At first accent was made on cafes. That is why they were called neither Internet clubs not Internet centres. It was considered that the city population was not yet ready for visiting such establishments only for the sake of using Internet. Therefore, owners of Internet cafes offered extra service (coffee, cakes). Thus, Internet cafes started to function in Georgia. At first accent was made on cafes. That is why they were called neither Internet clubs nor Internet centres. I think that the very idea of creating such establishments was not justified. However, there are people who prefer comfort during the work in Internet, but their number is not great. It is necessary to invest much money with the purpose of creating conditions for such clients. It is necessary to turn cafes into a bar; someone should bring coffee and cake; it is necessary to conclude an agreement, which, of course, will not be profitable to one or two men. The main thing for many clients is to use Internet, and they do not at all wish to pay extra money. If a client needs coffee and cakes, he will go to a cafe. Therefore, the idea of cafe transformed into something new. Today, computer-equipped places are quite wide-spread. Computers in such places are connected to Internet by means of separate line, and people go there to work on Internet.
– In what principal directions do Internet centres work?
– The shift of main direction on Internet was followed by the second wave of Internet games, which proved to be very profitable. A great number of Internet games makes it possible for several players to play games simultaneously. They fight an enemy or against each other together. There are even auto race, strategic and the so-called “action” games. The popularity of such games is obvious in Georgia. The Georgian excitement to play with each other and win has become obvious soon after these games appeared in Georgia. There is a category that uses Internet for work or just for communication via e-mail or chat. Therefore, from the consumer point of view Internet has two main directions. For one thing, there are some clubs that make accent on Internet. As a rule, there are approximately 4-6 computers in such clubs. In such cases, games are less popular because the more players there are the more exciting the game is. There should be, at least, 8 computers to attract game lovers. Thus, these clubs are oriented on the sort of customers that wish to work on Internet and need complete quietness. Everyone sits at his own computer and works. There is a different situation here. There are many people. They make much noise. There are many computers. There are four computers in one cafe and eight ones in another. Some people prefer this situation. Thus, there are different kinds of clients and, as a rule, a different work style. Those who come to play prefer noise and fun. There is often noise and shouts in such cafes. This generated this separation. However, as a rule, places for games often have Internet service so people can work there, too. That is why I try to show clients wishing to find information on Internet into a small room with four computers.
– How do you define a category of your clients?
– If we approach this issue from the viewpoint of age, contingent of our clients ranges from approximately 6-40 years old.
– And if we define clients by their interest sphere?
– Our frequent guests are game-lovers. Incidentally, no bets are made. Do you know what is characteristic of such games?
– To tell you the truth, I thought people made bets there, at least, for khinkali canteen. However, the main interest is to fight with each other and against each other. People, mainly, play and bet for the payment of a game. For example, a young man who does not have money (f.e. in case of loss to invite rivals to a khinkali canteen), four men play in pairs, two against two.Those who lose pay for others. The main interest is to win, both in totalizator and casino. Young people do not only come to win but also to play and have a fun. Vey often the game is paid by those who lose. Sometimes, people play for the sake of prestige.
– Naturally enough, strategic games have their clients, too, but, unfortunately, this number is much smaller.
– How profitable for you is twenty four-hour work time?
– There are people who stay at work till late hours. These clients leave their work late. As they can not sleep after a long working day, they come to us. Besides, Internet is much cheaper at night. If one hour costs 2 laris at noon, a client pays only 5 laris for the whole night from 12 to 8. This is the reason of why there are very many clients at night and why we work 24 hours per day.
– Are there any other ways of attracting clients?
– Certainly. We hold championships of a world popular game. There are talks about entering this game into a list of Olympic ones. We spread information about our championship via Internet. Any team of 4 people could take part in it. Under the terms, each team had to deposit 20 laris in prize money. Prize money depended on this fee.
– The holder of the first place, certainly, receives 60% of prize money, holder of the second place ? 30% and that of the third one ? 10%. Five laris does not seem to be a big sum, but there is a solid sum in case of victory. The majority of those who visited our site thought 20 laris was a big sum. What does it mean? Naturally enough, those who take part in the game hope for victory. Besides there are not any players in Georgia who are connoisseurs of the game, i.e it is not important for them to win a great sum of money. The main thing for them is to pay less ? 12 laris (3 laris per person) and merely to play. Thus, the game is played for prestige rather than for prize money. There is not any such excitement here as in totalizator. The main thing for a person is to come, get entertainment, win and increase his prestige in case of victory.
– What are your relationships with clients?
– The idea of club was not accidental. In any case, our club, mainly, works for regional population (people from regions). However, due to the fact that many Internet cafes and centres have been opened of late, people do not come from the far any more. Many visitors of clubs made friends, and their relationship went beyond the frames of Internet. We are acquainted with clients as well as their parents. Naturally enough, parents prefer their children to sit at computers instead of loitering about in the street. Besides, children can learn something. Thus, we got acquainted with parents, and sometimes remind a child that he should go to a teacher at 12. The child goes to lesson and then comes back to us. There were cases when parents left their children with us and paid for two hours while they were in the market feeling sure that they would meet their children in the cafe on their way back. In this case, the club fulfils an important function from the viewpoint of relations, too. People come here or make calls trying to find a game partner. Thus, Internet cafe is not only a place where people meet each other in order to play network games or receive necessary information, but it is growing into something greater.
– How profitable is business of Internet cafes in Georgia?
– As for the profit, on the one hand, it seems that this business is a very profitable one because there are always many people in our clubs so at first sight it looks as if we gain much profit. Yet, it is far from being so. We play many taxes. The after-tax profit is very small. We can neither grow rich nor earn much money in this way. People more often work and earn money for their families. I think that there are so many new Internet cafes because people think there is great money in it. But it is not so. Just imagine, a child comes here for 15 minutes. He does not have enough time to do anything so we give him extra time. There are special programmes that turn off computer automatically after the expiration of programmed time. We did not do this because our contact with clients is built on human relations.
– As we have already mentioned, we work, mainly, for people from regions. One and the same people come here. We do not wish to lose a client for some 15 minutes. On the whole, I would like to say that though there are many people here, we do not make much money. If someone intends to open an Internet cafe, I would like to assure him that this business would not make him rich. You can keep your family, but you cannot buy a house with this money.
– A boom of Internet cafes in Tbilisi is obvious. What about rivalry?
– I think each Internet cafe has its own clients. As for our internet cafe I would like to say that it is always full of people because of our relations with clients. There are other cafes where hardware is not worse than ours, but still our clients have not left us after these cafes were opened. There were cases when all of 12 computers were occupied. At this time a person comes who needs Internet. Yet you should take into account the fact that our club is, mainly, game-oriented. We tell him that all computers are occupied, and they will be free only in 30 minutes’ time, but there is another cafe in 100 meters’ drive with the same hardware so the client could go there. Strange as it is, but he prefers to wait for half an hour. Thus, other clubs are not our rivals. A habit formed in the result of lengthy relations is very important.
– How perspective is Internet business in Georgia? How long will demand on Internet and network games exist?
– The demand will exist. There will be computer games for as long as there are computers. No matter what the global technological changes in modern civilization are, computers will still be irreplaceable. People will always need computers and network games. At some stage computers will cease to be a luxury article. Internet users will be able to enjoy computer service without leaving their homes. However, game-lovers prefer to play games in clubs, crowded places. In this case, Internet-oriented clubs will find themselves in a difficulty. Perhaps, there will be one computer in each home soon. A user can establish connection with the second one. So two people will play with each other without leaving their homes. However, 10-12 people cannot communicate by means of modems (at least, now). It is not interesting when a game is played by two people only. It is better when many people play. I do not know how our civilization will change in ten years’ time, but in any case there will be demand on computers and computer games still for a long time. However, I do not mean that this business has great perspectives in the future, that it will develop and acquire large scales. No! But this business will always have clients, and those who are in this business will be able to earn their living. This business is similar to a tone (oven for baking bread): people buy hot bread there, but it will not turn into a great bakery. Internet cafe will be a small business that will exist for as long as people have a wish to communicate with each other, and for as long as they have southern excitement and interest.