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Attila Dogudan
Chairman of the Management Board & CEO, DO & CO Aktiengesellschaft

Fellner! LIVE: Attila Dogudan im Interview

🎥 Jul 20, 2020 📺 OE24.TV ⏱ 36m 👁 5588 views
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About Attila Dogudan

Attila Dogudan, chairman and CEO of Do Aktiengesellschaft, has been interviewed on Austrian media regarding the COVID-19 pandemic's impact on his businesses. In February 2021, he expressed disappointment that restaurants would remain closed until after Easter, stating he had expected the decision but hoped for outdoor dining to be permitted. He said that without revenue, many businesses would struggle to survive, and he called for faster, more direct financial aid and a reduction in non-wage labor costs. In April 2021, he confirmed his restaurants would reopen on May 19 if allowed, noting that reservations were already filling up. He also mentioned that his event catering operations were resuming, including a 10-day event in Madrid with 2,000 guests per day. During the Euro 2020 football championship in June 2021, Dogudan, whose company provided catering at Wembley Stadium, described the atmosphere as "diametrically opposed" — with rising COVID-19 case numbers causing concern while fans in the stadium celebrated. He expressed pride in being an Austrian service provider at Wembley and hoped for an Austrian victory against Italy. In a 2013 interview, Dogudan discussed his career trajectory, including how he secured a contract with Formula One after being asked if he could deliver catering in 10 days, and stated that success is not about money but about belief, vision, and hard work.

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Transcript (54 segments)
H
Host0:01
What is being written about in Austria today? Our country's poem, partisan, really critical, yes no yes after the heavy guest, stands between Schiller and bread, now at the two meetings wanted Attila Dogudan, I'm glad that details can be kept on Fellner Live. There is no catering entrepreneur in this country who is more famous than you, there is also none who is more admired or more hated, right? But despite that, you suddenly find yourself in the whole mess, to put it in writing, and you think, what happened? Right, because you have it really big, you are the caterer of the biggest sports and mass events, Formula 1, the Euro was supposed to start, you are an airline caterer from Turkish Airlines to international airlines, New York, Los Angeles, where you have all your contracts, you are the gastronomy company par excellence, also in tourism with the topic, what do you do then, can more Japanese come, I ask myself, and then you also have a hotel, and I've probably forgotten some things, namely your entire catering service for company events etc. So you are the catering, gastronomy and hotel entrepreneur in this country, and then such a damned crisis comes along, making life even harder. So more storm can't actually be imagined, there is not a single business field, and there were really many already listed, from Los Angeles to Korea, Europe, everywhere, where within ten days revenue went to zero, with 12,000 employees, so those are exciting times, but the exercise is really not bad, I must honestly say, we both like, I was like, but that would have been spared us, exactly, that's really hard.
Now let's go through it. First, the house is freed and plays on the Euro. You would have climbed there, it would have been dreamlike, apart from the many states, from the Allianz Arena in Bavaria to the French, yes, all gone. That was the first shock, I think, or?
A
Attila Dogudan2:23
Exactly. So football is a big business field for us. We would have had our fifth Euro in a row, all plans ready, everything ready, team ready, but a cancellation.
H
Host2:36
Secondly, you are of course the super kicker in the airline business, practically airline catering for business class and first class, which you do. But everyone who flies knows a flying kitchen, the trend of business class, the emperors save, and the food in the back also from the same exercise, 60 airlines at 131 locations in a normal week, all gone. Then your great gastronomy at Stephansplatz, Albertina, but also the topic of tourists normally pressing their noses against the windows, all gone. So there can't be much more trouble, nothing. That also includes the hotel and then of course your entire catering business, from weddings to company parties. You had last year what revenue? You are listed on the stock exchange with almost a billion, and a billion already planned, and the revenue temporarily 90% down. And how much do you expect this year?
A
Attila Dogudan3:48
That is the most difficult thing to say, what will happen and what won't. If not a single plane goes up, if no stadium opens, if nothing happens, then it's tough. But we are prepared for it and have reduced as much as possible, but it only goes to a certain point.
H
Host4:08
Now you are from trend to format and so on, as the manager of the year in this republic, how do you manage? Manager of the year, that's something.
A
Attila Dogudan4:21
Yes, we have to accept reality as it is. I think the most important thing was the health exercise, that the infection was at least reduced here. I think we achieved that, and now we are happy that a gradual opening is coming, and this slow pace probably needs to be a bit faster if the infection numbers don't rise.
H
Host4:42
Did you send everyone on short-time work or did you have to fire people? What does your employment balance look like?
A
Attila Dogudan4:46
We had to do both. We sent the majority on short-time work worldwide. We had a total of 12,000 employees and are now 9,000. I always say we saved 1,000 jobs because there is still zero revenue, and we believe that step by step we can move forward. We have to be more innovative, faster, better to manage it. And these 9,000 are now on short-time work.
H
Host5:13
And when you look at this crisis in retrospect, was it right that the Austrian government acted so brutally and harshly? Was the whole lockdown right, or was it an overreaction, panic?
A
Attila Dogudan5:28
I personally believe that it was right the way it was done. We are pioneers everywhere. Human life is invaluable. You cannot play off health and economy against each other. First comes health, then the economy. Now we have reached a point where I think speed is needed, to open everything quickly while observing all parameters with the right distances, masks, and so on. So if the mask, distance, and hand washing are the price for us to have the virus under control, then that's fine with me.
H
Host6:07
Would you have liked to open faster?
A
Attila Dogudan6:11
I would rather say from now on, but now I think there is no reason why we have to wait another two weeks for hotels and restaurants to open, for example. I think that would have been fine. But on the other hand, if the borders are not open, and other countries are not at the same health level, then the borders won't open, and that is certainly a problem for gastronomy and tourism.
H
Host6:43
How did you experience this crisis? Was it also a job for you personally? Because you were actually a highflyer, right?
A
Attila Dogudan6:52
Yes, see where it will lead. It's not a shock, but it's another reality. A pandemic is what it is, and you have to live with it. I think the most important thing is to keep a clear head in the leadership of companies and see how we can get through the fastest to be viable again afterwards. This pandemic is so difficult because it is global, there is no anchor point, and worst of all, you don't know how it will continue. When you talk to airlines today and ask how much they will fly this year, everyone shakes their head, one says 20 percent, another says 40, another 30, so no one can foresee anything, and that is the biggest uncertainty.
H
Host7:38
If you go through the industries you are active in, let's start with the airlines. The rescue of AUA is on the table, and everyone says AUA should be rescued, 780 million. But as always, politicians are involved, it's dragging on. Nerves are stretched to breaking point, nothing is happening. What does Attila Dogudan say about the AUA rescue?
A
Attila Dogudan8:04
I believe that something is happening. I think the federal government and its offices are negotiating clearly, and there has been a clear statement from the Chancellor and Finance Minister. They say it is a German company but at an Austrian location, and for us tourism is vital, especially long-haul, that is essential. And I think one day the Lufthansa will guarantee Austria's advantages, and then money will probably flow. And here I have to say, it's not just about giving money to AUA. What happens to the airport, what happens to ground handling, and what happens to all of us? These are tens of thousands of jobs. It's not just about one company, it's about an entire industry.
H
Host8:39
And here I think you have to say, it doesn't only help AUA to give money. What happens to the airport, what happens to ground handling, and what happens to all of us? These are tens of thousands of jobs. It's not just about one company, it's about an entire industry.
A
Attila Dogudan8:54
These are tens of thousands of jobs. It's not just about one company, it's about an entire industry. Many say AUA will not be rescued, and the Vienna location will go to the wall. So it should continue to fly in some way. The question is only what the owner intends. To only operate short-haul is limited, that doesn't help the location. And I think the government has a clear position. I don't want to give advice from outside, but the position should be that Vienna must be preserved as a long-haul hub. That is the most important thing because passengers come from the East, fly to America or Tokyo or Beijing. We are in the east of Europe, so it's a good point to fly into Vienna from all Asian countries and then distribute within Europe or continue flying. And that is the crucial point. If they agree, as we all hope, then jobs will be preserved, not only at AUA but also all others.
H
Host9:53
And if they agree, as we all hope, then jobs will be preserved, not only at AUA but also all others. But there are many who say, yes, but AUA gets millions of euros. What do you say to that? That's hard to argue, to be honest, because which job is more or less valuable? They are all equally valuable, and it's important that everyone gets something. On the other hand, if no traffic comes into Austria, then the hotel industry, gastronomy, everyone will have a much bigger damage. So it has a strategic importance, a chain reaction.
A
Attila Dogudan10:10
That's hard to argue, to be honest, because which job is more or less valuable? They are all equally valuable, and it's important that everyone gets something. On the other hand, if no traffic comes into Austria, then the hotel industry, gastronomy, everyone will have a much bigger damage. So it has a strategic importance, a chain reaction. Exactly, someone has to ensure that long-haul flights come in and that Austria and Vienna as a hub remain. That is the be-all and end-all.
H
Host10:48
Now you are active in gastronomy with the Demel, everyone knows it. Everyone who is currently active in gastronomy is suffering because they say they are about to close. You are with the Demel in a similar situation. You say it's pure hobby if you still want to keep it open, because as long as no tourists come, you can't run it economically. You had to reduce staff, I think. What do you say about the gastronomy situation in Austria?
A
Attila Dogudan11:28
The situation in Austrian tourism, gastronomy, and hotel industry is very dramatic. Logically, if no one can come in and everything is at a standstill. In addition, in this industry, margins have always been very low, so the equity base is limited. And if you can get short-term loans, but if there is already a crisis and you get another one, the question is how to pay it back. So the exercise is how to get through short-term. The government is making approaches, no question, also what happened today, but I think more help is needed so that individuals quickly benefit from it to continue at all.
H
Host12:22
Is what happened today good? It helps with a VAT reduction on non-alcoholic drinks. You say, very funny, a large part of my business is with alcoholic drinks. So you have partly answered yourself.
A
Attila Dogudan12:40
In all of Austria, I think every tax reduction helps, no question. But if it only applies to non-alcoholic drinks, and in a restaurant, I would say 30-40% of drinks are non-alcoholic, and of that maybe a third, so it ends up at about 10% where the benefit for the restaurateur is a few percent. That is limited in effect. Everything that needs to happen today must be such that the restaurateur earns more money, otherwise the exercise won't pay off. That applies to all of us. We all have the same problem, and we all work very hard. In this industry, margins are so low in normal operation when everything goes well, that when the crisis comes, with the distance rules that are necessary but only half capacity, someone explain to me how that is solvable. Therefore, I think restaurateurs need this 75% fixed cost reimbursement, but I honestly think that a few hundred million from the government must quickly go to gastronomy. There are already those who say from 1000 euros revenue, the restaurateur has 0.14, so 14 euros, which is an income of 4% more. So from 1000, is that correct or exaggerated?
H
Host14:15
So is that correct or exaggerated?
A
Attila Dogudan14:17
No, I think the numbers are not that wrong because the price level in Austria is very low compared internationally. If you go to London, Paris, New York, where similar salaries are, the food simply costs more. So everyone can calculate that it doesn't work out. And I know few gastronomy businesses that have double-digit profit margins. We are all at best in the lower single-digit range. And that is very little to build up equity.
H
Host14:46
Now you will open the Demel on Friday. All your businesses except the Demel are opening, and the first days are already fully booked. So we see that we live 80% from domestic guests in this business. The Demel is exactly the opposite, a coffeehouse has it even harder. A café is designed to have as many people as possible on a small area who spend relatively little but turn over a lot. That means social distancing with a coffeehouse, if everyone sits one and a half meters apart, one drinking a coffee, how much can you earn? So it's a difficult undertaking. It remains closed for the time being until the borders open.
A
Attila Dogudan15:41
Because if we were to open without a single foreign guest, the model simply wouldn't work. I don't know how I can manage the old building with the distance rules. I would be constantly violating them. But the others open, your Albertina, your other restaurants, they open. The most important thing is that many who need it urgently open. Normally, how many guests come to my restaurant at Stephansplatz? Normally, on an evening, I would say 200+ guests. Now with time slots, you can't get over 120-130, only terrace if the weather works. So you actually only have half the guests. Exactly, within the rules, that's all that fits. And that actually leads to half the revenue disappearing. That is tragic because how can you still make it financially? Is it even possible, or do you make a loss that day?
H
Host16:50
That is tragic because how can you still make it financially? Is it even possible, or do you make a loss that day?
A
Attila Dogudan17:00
We will see. We have to work intelligently. It's not just that the area is smaller, the effort is also greater. The toilets have to be cleaned more frequently, at the reception we need an additional person, we have a person who organizes the elevators to bring guests to the table, so much more effort for the same money. And everyone is also cautious in consumption. We don't know how it will continue. But let's see. Two weeks in advance it's fully booked, but do you even break even with only 125 guests? We have to adapt our costs, and we can't raise prices. And the VAT reduction on non-alcoholic drinks doesn't really help.
H
Host17:53
No, I also wonder about small things, I have to say. But of course wine and beer are not included, and alcoholic drinks that logically belong to a dinner, at least in our culture. That's a shame because supposedly it's because of the EU, but if that's the case, then another kind of help for restaurateurs must take place. Because there are actually only two things: either reduce the taxes on gastronomy a bit, or the second is that gastronomy is a big employer, so the wage costs and ancillary wage costs must go away. They simply have to go away because it cannot be that we are punished for employing people. I say that a bit extremely, but I think we live in an environment where all those who create jobs must be honored somehow, because the biggest problem we have is unemployment. That must go away. So it's better for the state if it waives ancillary wage costs, for example, for this year until the end of the year. It will certainly save more than it has to spend on short-time work.
So you say, my dear people, the reduction on non-alcoholic drinks is nice, but not how it really is. The lump-sum taxation is good for small businesses, but there is not much. 430,000 euros revenue per month, that's something. That is already a decent amount. And the federal government has taken a right step. I assume it will pay off. The first step is naturally for the small ones, that's fine. But a next step is certainly necessary to maintain the tourism country Austria with its businesses.
A
Attila Dogudan19:36
The proposal is: if you don't want all of them to be sent into unemployment in the short or long term, of course no one can keep 100% of the staff. If revenue is 20% of normal, then you have to help us now to completely eliminate the ancillary wage costs. That would be my proposal. From July or early August, no more ancillary wage costs if you are fully employed and not on short-time work. That is certainly beneficial for everyone and for the morale of society. The more people have work, the more they will consume again, and that is a cycle that makes sense. And whether it costs 200 or 300 million more or less, I have no idea, but it is certainly advantageous to keep people in work and relieve businesses so that they can rehire people instead of short-time work.
H
Host20:38
Do you have a problem with serving with masks?
A
Attila Dogudan20:44
No, I think that's completely honest. I don't want anyone to get infected either. So I think it's fine. We are all used to it. Over time, the masks will also become a design article, and some stories will come. That's not a problem.
H
Host21:03
So this whole opening is actually a very positive story for you. You say the money will flow economically, and it will only stand when we, for example, eliminate ancillary wage costs. That would help. It is also the reduction of the VAT, that's fine, but there are many small things. It's not that the government hasn't thought of anything. Do you actually fear that this country will economically hit the wall?
A
Attila Dogudan21:36
Honestly, no. I don't think so because at the end of the day, the health problem, since we have handled it so well, I think we are capable of solving these problems too. Every discussion like the one we are having now will bring some idea forward and thus bring the next one. And it will be adapted. It's not that the government has done nothing. The last two months were also a surprise for them. Everything that came, because many are upset about why the vegetables are on the table. You say we will come out of the crisis stronger than we went in.
H
Host22:13
Well, whether stronger, I don't know. But we will come out, and I think that's satisfying. It was the first round with Attila Dogudan. The Austrian entrepreneur who always thinks positively. We'll take a short commercial break, then we'll talk about how it continues in this country, what about the Formula 1 race in Spielberg, will we have big sports events again, all that with Attila Dogudan after the break.
Well, on Fellner Live today, Attila Dogudan, the entrepreneur in this country, the gastronomy entrepreneur in this country, who on Friday will open all his restaurants, thank God. The hotel then on the 29th. But catering for large sports events, weddings, and company parties still has to wait. You are one who actually has a turbo professionally and personally. That means you see across world history, you are at the airport in Istanbul, then at the Formula 1 Grand Prix in Shanghai, then at the French Open in Paris, then you check on the Demel, then you are in overdrive, and so on. That was probably difficult in the last weeks. Were you really in Vienna for eight weeks? And how does someone like you experience a deceleration?
A
Attila Dogudan23:51
Deceleration is only local. In terms of content, the last time I was in Vienna for eight weeks was during my school days, not since. But it is what it is, wonderful. So I didn't experience it as cramped, but rather a power break, a rest break.
H
Host24:04
So you didn't experience it as cramped, but rather a power break, a rest break. Or how is it called abroad? A break? No talk of a break. We hang in the office 12, 14 hours every day. So every day in the office, not every day going to the office, so no home office, but in truth the office is partly in my home. And we learned to use video conferences worldwide with all our colleagues every day for several hours to discuss and to solve problems faster than our competitors. What else can I say? It was terrible. Or did you also profit from it in any way?
A
Attila Dogudan24:46
I can't call that time particularly pleasant. Terrible, yes. What can you find funny about the world coming to a standstill from one day to the next? You also profit by learning to bake smaller rolls and to think in smaller dimensions. The things that have happened in the last years as a whole society were a lot, and you have to admit that the whole chase for more and more profit has perhaps also been a response of nature to what is happening. If you look at it from the outside, everything normalizes a bit, and maybe people are now able to see how vulnerable we all are, and that brings a bit of normality. It's okay that in Venice fish are suddenly visible again, and the world is a bit cleaner than before. So maybe people learn. I'm not sure if they learn, when I see how people here are already walking around without masks and it's already like 'whatever', there is a great danger that people quickly forget, and that would be stupid.
H
Host26:06
Do you actually fear a second wave, Attila? Or was everything very exaggerated and not necessary? Was the closure of gastronomy in Sweden not necessary? No, I am 100% of the opinion that everything that has happened so far was right. Now, as I said, it has to go quickly in the other direction. I fear the second wave because pandemics in the past have always brought two or three waves. That means as long as there is no vaccine and no medicine, the danger is simply there. Whether we can afford to shut down everything worldwide again, I don't think so. I think you can do something regionally, and I think all governments at the end of the day have to say we have now adjusted to something we were not prepared for. Our hospitals and intensive care units are now ready. If a second wave came, and only if it is excessive, then you have to do something. Otherwise, every country is responsible for itself. And to be honest, if you follow these three rules, the probability is high that you hopefully won't get it.
Now you are also a bit a victim of fear because you have many large events, and there are many who, out of fear of a second wave, don't allow large events. Especially strange is that the Grand Prix in Spielberg will take place, but a genius VIP club there, you have that, the catering there works differently. As far as I remember, the tables are already so far apart that you already meet the distance rules. So the truth is, you are allowed to do catering there with conditions, even though it actually corresponds to normal gastronomy operation. That is actually perverse, but yes, that's true. In Spielberg, we will cater for the teams, that is, we will do the open beta for the teams and no guests. It is also the first event of this magnitude worldwide, and again Austria is ahead. I think that's really great from Red Bull and also from the federal government that they made this possible. It will bring great worldwide attention to Austria, no question. And in that respect, it's okay. But at some point in a few weeks or months, it will be hard to explain why you can keep a restaurant open if you follow the rules, but not a football stadium that can also do that, or a tennis tournament. In a 30,000-seat stadium, if you have one and a half meters distance, then only 8,000 people can sit, but at least 8,000 people. I think only that way normality returns, and you have to think about it. And we are trying to discuss with football clubs in Austria and Germany, our partners, how we can organize something like that from leaving home to coming back home.
That means there are for individual sectors, that you stay longer in the stadium, it is also an open-air event, you can also say I think there is a difference whether you are in a hall or in a stadium or at a Formula 1 race. But I am quite sure that in the next few weeks and months, step by step, if the numbers are okay, it has to come. So you believe the comeback of spectators is already logical? I think we can't stop that. I also think the Bundesliga, whether in Austria or Germany, everywhere has to play to really give people strength again. That sounds stupid, but that's it.
A
Attila Dogudan29:53
I think we can't stop that. I also think the Bundesliga, whether in Austria or Germany, everywhere has to play to really give people strength again. That sounds stupid, but that's it.
H
Host30:04
Attila, now you are also something of an economic thought leader in this country. What still needs to happen now so that we get out of this whole thing? And what would you do if you had a say in politics behind the government?
A
Attila Dogudan30:19
I think there are two vital things. One is that the individual must be secured in some way, i.e., unemployment numbers must not come. Therefore, all businesses should be supported so that they can rehire people. That is the starting point. The economy will automatically start again when people have that security. The second is companies. I would not create a split between entrepreneurs and workers and employees. We are a society, and companies create jobs, and they must stay healthy. So all those who have taken damage, like tourism in Austria, which is one of the biggest sources of income, must ultimately be brought back to the pre-corona level so that they can continue to work. I think the government is doing its best to at least open the borders to Germany. Austrians will hopefully take many vacations in Austria. People consume, that is the be-all and end-all of the whole story. This cycle works: then comes the mood, when the mood comes, money comes, when money comes, jobs come, and so on. The worst would be a depression where people are afraid to spend money and companies are afraid to hire people.
H
Host31:36
That we naturally now, the first case, you have already explained. You say if people go back to full-time quickly, out of short-time work into full-time, they should not have to pay any ancillary wage costs, and that could save the state a lot of money because ancillary wage costs are actually less than short-time work. Exactly. If someone, without saying a specific industry, if billions are earned in real estate, they should be taxed differently. So if a company employs thousands of people or even ten people, the creation of jobs should be rewarded so that the society has a point. Would you also do something like helicopter money, i.e., bonus payments like Trump is currently doing? For example, give every Austrian 1,500 euros, or would you show a vacation bonus or a gastronomy check? Have you thought about these things?
A
Attila Dogudan32:32
I would give everything that can be spent domestically. And the question is whether that is the only answer. I think all kinds of vouchers and gastronomy checks or vacation checks are important, but they must be redeemed in Austria. We first have to get our economy going again. For example, checks. I would say cautiously, give 10 or 100 euro checks for gastronomy, or 10 or 50 euro checks for gastronomy. If we do that, it's a lot of cash, and the restaurateur can get it from the government or the tax office. But there are not only gastronomy, there are several industries in Austria, like retail or the clothing industry, that also want something. But at the end of the day, it certainly gives people security. I think people partly have the money but don't spend it because they don't know what the future holds. No one can answer that for sure. No one knows how it will continue. We will all have to bake smaller rolls. I firmly assume that the empire will shrink in the next few years. I think this year there will naturally be less revenue. What is important is something else: how is the profit situation at the end of the day? If a company uses such crises to get rid of all the nonsense they did for whatever reasons, and they can no longer afford it and run properly, that is 100 times better. And whether it's a billion revenue or half a billion, honestly, it doesn't matter for this year. And you have to think about intelligent new products that will secure jobs in the coming years, boost the economy, and then the economy will automatically go up again.
H
Host34:22
We had a common friend, especially your best friend was Niki Lauda. His death anniversary is in June. How do you see the whole thing? If he were still alive, with the joint venture with Ryanair and all this theater, what would he say?
A
Attila Dogudan34:29
We think about that often because he always analyzed faster than all of us together. He accepted in a second: it is as it is, now we have to be better, faster, clearer, we can't argue. Let's make a product. Giving up never existed with him. And with that, I think everything has been said. Giving up is not an option. We have, if we do it well, a good future in Austria. So giving up is out of the question. We look forward and will come out of the crisis at least as strong. I am 1000% convinced of that.
H
Host35:12
Good, thank you, Attila. And as I said, on Friday the Demel opens. I haven't forgotten. There is still a place, you can reserve. It's already fully booked for a week, but if there are a few terrace spots, you can still spontaneously develop if the weather is nice. I said that, of course, keep all fingers crossed that this works, and that it goes well with 125 guests, and that the hotel works again, and that soon we can all toast to better times. That we have done everything. That was April with us, and now after a conclusion from Pinkl himself, that is the cultural music against Melzer, and of course also the question: has the government driven this country with Corona into the ditch? And how dramatic the situation is, that will remain exciting. See you.