Immersion in darkness. What owners of bakeries, cafes, clinics, and pharmacies do to work

Prices for goods and services in Ukraine will rise this winter, and possibly more than once. This is the result of large-scale Russian attacks on the energy sector and hours-long blackouts across Ukraine.

Cafes, bakeries, and pharmacies run on diesel and gasoline generators or use energy storage. This has already raised the cost of their products or services by 5-15%. However, this is not the limit of the problems. There are fewer customers because people are trying to walk the streets less in the evening.

What entrepreneurs from different cities of Ukraine are doing to keep their businesses running and under what conditions it will affect prices – read the article LIGA.net

One and a half million investments in energy independence

"Our record is 18 hours of continuous work on the generator," says the owner of Vinnytsia veterinary clinics about the realities of business life Vet House Volodymyr Bilenkyi. In Vinnytsia, the power is cut off for six to seven hours.

The entrepreneur has two veterinary clinics in the city. One of them has been operating on a generator during power outages since 2022, with an area of 85 square meters. The other, a three-story, 370-square-meter clinic, was opened in 2024.

Bilenkyi installed solar panels and a battery at one of the clinics, investing UAH 760,000. For another, he ordered an inverter with a battery for UAH 816,000. He also bought an additional generator for UAH 150,000.

"Of course, [working on a generator] affects the cost, and we will also raise prices. From 10% to 18% for various services," says Bilenkyi.

A day's work of his clinic from the general network costs about UAH 1500-1700. The cost of running an hour on a generator is about 200 UAH, which amounts to up to 4800 UAH per day.

Forced price increases

The owner of a Kyiv-based bakery chain also talks about raising prices "Such pies" Andriy Vakulenko. In the capital, electricity is cut off for periods of seven to ten hours or more. A bakery is an energy-intensive process.

The Takie Pirogi production facility consists of two types of bakeries – one with less powerful and one with more powerful electric ovens. To ensure his energy independence, Vakulenko relocated some of his facilities.

In total, Takie Pirogi has five production sites that could be placed in five different locations. This is better for delivering hot pies to different districts of Kyiv. However, he grouped all the production in three locations.

"It's bad for logistics. But it is much cheaper in terms of energy generation," explains the entrepreneur.

Previously, the ovens were powered by seven generators, which were connected to a common network and each powered its own part of the equipment. Now Vakulenko has bought three powerful diesel generators for each of the locations, investing UAH 1.5 million. This greatly simplified their maintenance.

"When the blackouts started, we raised prices to compensate for the cost of fuel for generators. But due to unstable demand, we are close to the next price increase," says the businessman.

Working from generators has already led to a 5% increase in product prices, says Vakulenko. Other factors, such as the cost of raw materials, staff shortages, and marketing costs, also have an impact.

Refueling and maintenance is a separate issue

Operating on generators reduces the chain's profit by 15-25%, says Pavlo Shandra, owner of the Odesa-based Citimed pharmacy chain. Since 2022, his pharmacies have been equipped with generators and batteries. When there is a power outage for up to five to six hours, the outlets run on batteries, and when it lasts longer, employees run generators.

Another problem with running on generators is that fuel needs to be purchased and delivered. And in small businesses where one or two people work a shift, this is almost impossible, explains Oleksiy Davydenko, owner of Ridni medical equipment stores. His chain includes 66 stores in more than 15 regions of Ukraine.

"In our case, diesel is not profitable both economically and logistically. And the cost of running a diesel engine dramatically increases the cost of what is sold inside," says the entrepreneur.

Valeriy Golyk, owner of the capital's Sport Plaza sports club and co-owner of the National club, talks about the same problem. He has no one to entrust with the function of fuel delivery and generator maintenance. So he and his partner do it personally.

Their sports clubs run on generators of different power and eco-flow. The main problem was to power the cardio area – treadmills, exercise bikes, etc.

"A single treadmill, if a person weighing, say, 130 kilograms is training on it, will consume 2.5 kilowatts easily. And this is just one treadmill," explains the entrepreneur.

The cost of generators eats into the earnings of sports clubs. In the first month of blackouts, it dropped to zero, despite the fact that previously the margin was 25-30%.

However, Golik cannot raise prices due to competition. Several new sports clubs opened near Sport Plaza in 2023-2024. Keeping the price low allows him to retain customers. However, he does not plan to close the business, and will finance it from his own savings if necessary.

"This is a business that allows me to live. He has been doing it for many years, and if he is not doing well now, I need to help him," the entrepreneur reflects.

Generators are not for everyone

However, generators are not suitable for everyone. Olena Tokar, founder of the Lol & Pop candy brand, is installing an inverter with drive for 15 kW. To do this, he is going to take out a loan.

"A generator is not an option for us," says Tokar. "We only employ women and the premises do not allow for the installation of a generator.

Due to long outages, the company reduced production volumes and delayed product deliveries. This led to a decline in sales. Volumes are expected to resume after the drive is installed.

In general, the situation with the lack of electricity is complex and very sensitive, says Oleksiy Davydenko.

"People try not to walk the streets after 4 p.m. and adjust all their plans to the operation of elevators and electricity schedules at home," he says. "In my subjective opinion, not all businesses that have survived the last four years will survive this winter.