Jurica Protić (Zvona catering): The only way to survive is to seek new solutions, follow trends, innovate

The generational change at the helm of Zvona catering from Zagreb could not be disrupted even by the corona crisis. Directors Lorenka Copić and Jurica Protić successfully led the company in special circumstances with the advice of their parents Đurđica and Ivan Protić, who, although less operationally present, provide a secure support and additional protection due to their long-standing experience in the business and company management, says Jurica Protić. This will be their recipe for new economic challenges, which are now somewhat more favorable since there is no stopping of business as during the peak of the corona crisis.

How challenging was it to find yourself at the helm of the company in the midst of one of the worst crises?

– We were fortunate to have successfully transitioned generations. In fact, we faced the corona crisis after the transition was completed, so we had the necessary tools, knowledge, and skills to meet the unprecedented crisis. Thanks to that experience, it was easier for us to be prepared for everything that awaited us. Moreover, my sister and I complement each other excellently. I am responsible for sales, business organization, and customers, while my sister handles procurement, finance, and the creative process.

Your dining space at Ericsson Nikola Tesla was used by an employee who became the first recorded case of coronavirus in Croatia.

– Yes, I often jokingly say that we were the first corporate victims of the coronavirus in Croatia. By February, we were already in forced lockdown, and at that moment, it really felt like the end of the world, and we were not even aware of what awaited us. Perhaps we were saved by assessing at the beginning that the crisis would not be short-lived but would last for years, and thus we made our decisions. We prepared together for the worst possible option; fortunately, that did not materialize, but unfortunately, it was not so far off that it almost did. We were lucky that our parents are still involved in the business and that we can consult them regarding important decisions. However, it is certainly my sister’s and my word that was final in decision-making.

How are you managing now under conditions of inflation and an energy crisis?

– What is happening now is not good, but compared to the corona crisis, we are allowed to work. Back then, we were forced to close, and in a way, our constitutional right to work was violated. We had to be very creative in finding solutions to survive, pay salaries, and plan for the future. From a revenue perspective, we are currently satisfied with the projections achieved, but we are concerned about the disrupted profitability. Of course, no one expected such inflation, officially 13.2 percent, although the numbers for us are much higher in reality, and for next year, we have somewhat conservative business plans. The arrival of recession will significantly impact our business because our market segment is always the first to be cut. The catering business is an expense for companies that they can do without.

All of this is an additional challenge for entrepreneurs in Croatia.

– Being an entrepreneur in Croatia is demanding due to various tax burdens and a business environment that is often not very favorable to us. We in hospitality have been particularly hit during the corona crisis, and now we face inflation and an energy crisis along with a labor shortage. There are many challenges, but looking at my business lifetime alone, we have always been in some kind of crisis, so we are all seasoned and accustomed to it. I am confident that we have become adaptable, and we will adjust to these circumstances as well. It is essential that we entrepreneurs do not relax, that we seek new solutions, follow trends, and innovate, as that is the only way to survive. Those who do not adapt are doomed to disappear in the long run. My message to entrepreneurs is not to give up and to remain optimistic. Only in this way will we all progress and achieve our goals.

Which part of the business brings in most of your revenue?

– We have divided the business into catering, which accounts for about 55 percent of the business and a larger part of profitability, and restaurants in corporations intended for their employees. During the corona crisis, we also began developing new brands: desserts N’oublie, Zvona for home, and business packages. These brands have a future given the current circumstances, achieving good results, exceeding our projections, and we plan to expand them. Before the corona crisis, we had over 2000 caterings and more than 120,000 served guests per year. This year we have not yet reached those numbers, but we will not be far below them either. If this business trend continues next year, we could exceed those numbers. We have nearly 50 employees, which is fewer than before the corona crisis, but we are now looking for additional workforce.

How did you start the company?

– The original idea in 1994 when we were founded was to expand the chain of pubs Zlatna zvona, to which we owe our existing name, and bistros Din Don. This direction lasted until the early 2000s when we turned the business in another direction for personal and business reasons. In catering, we recognized that it was a niche that would surely have sustainable growth rates and that we needed to enter it before others. We succeeded, and today we are recognized as one of the top caterers in Zagreb, and thus in Croatia.

You built a new business space with a showroom and modernized the existing one.

– We started the construction of a new building and the reconstruction of the existing one before the lockdown, which was an additional challenge. The value of the investment is about 5.5 million kuna, and it has allowed us better functionality, improvement of all business processes, and enhancement of representativeness and image. The most important thing is that we significantly facilitated production primarily for our employees, improved quality, and with the installation of thermal stations, also increased energy efficiency.

You cover the whole of Croatia with your offer; what are your plans for business expansion?

– As a catering company that does not have its own space for organizing various events, we have been focused on working throughout Croatia since the beginning of our business. We have traversed Croatia from Dubrovnik to Međimurje and from Istria to Ilok. We have also worked events in Slovenia and a bit in Bosnia and Herzegovina. Slovenia, and even Austria, are particularly interesting markets for us because we can compete with local caterers in terms of price, quality, and variety of offerings. Croatia’s entry into the Schengen area will further enable us to position ourselves in those markets. It is certain that we will direct part of our promotion to those markets because we have room for progress and growth.

What does your offer include?

– We change the menus seasonally every three months; currently, we are offering Christmas dishes. Certainly, we in catering have some limitations such as serving, and some dishes are often repeated year after year. However, innovation, as in any business, is extremely important, so every year, in addition to offering new dishes, it is necessary to seek new solutions for their presentation. This means that decoration, tables and chairs, and the serving method are something that we and the competition monitor. We follow trends from abroad, and since we are now in the pre-Christmas period, the offer is adapted accordingly. The Christmas menu, besides new items, must include classics such as cod in white, pašticada, fritule, poultry, and mulled wine.

How will the introduction of new information and communication technology improve business?

– Digitalization has also affected our business; we managed to obtain funds from the European Union for our digital solution. It will unify all processes that we currently perform in a more demanding way. The idea is to unify the process from receiving orders, contacting customers, modifying offers, confirming orders, realization, sending to production, post-sales communication with clients, and post-sales analytics into a tool that will monitor all of this more qualitatively, quickly, and comprehensively. We are currently developing the project, and we expect implementation next year. We believe that this will provide us with a lot of quality data for analysis at a level we have not had before.

Content created in collaboration with Zvona Catering.