The Bane Of Riga’s Restaurants
By Oleg K. Temple, September 2009.
Blatant malpractices and gross breaches of ethics cast a dark, ugly shadow on Riga's restaurant and bar scene threatening the welfare of honest establishments and marring their hard-earned reputations. The government has, thus far, maintained an aloof, taciturn approach to the issue and restaurant owners, whose business interests are at stake, now take matters into their own hands, determined to procure the elixir that stems and eradicates the escalation of fraud and lawlessness in the business.
A Sign of the Times:
As the icy grip of the economic crunch tightens around the world, businesspeople seek alternative ways of raising and conserving capital to keep their companies warm and supple. These methods are seldom subtle, popular or pleasant, however, they extend the company's lifespan and hence are essential to undertake; belts are tightened in various ways – some companies downsize the work force, others relocate to cheaper premises, and so on. Sadly, in desperate times certain wily wheeler-dealers attempt to "sell their cake, yet keep it", they resort to trickery intended to separate first (and only) time clients from the money in their pockets. Of course, this ruins business for all who work in the sector, as word eventually gets around and clients begin to steer clear of similar establishments in the vicinity of the predator, but the crooked crook does not care as long as there is a steady supply of ignorant first-timers to prey upon.
Over the past 19 or so odd years, Eastern Europe has enjoyed a steady stream of curious tourists eager to witness the sad remnants of The Soviet Era firsthand. The people who choose to visit chilly, rainy Baltic republics (rather than bake on the beaches of more mainstream holiday destinations) are generally seeking some soul food; they are interested in architecture, history, culture and to wash all that down nicely, let's not forget that extra bonus allure – really low prices. Unfortunately, the '90s are way behind us and so are the low prices – as I write this, the Latvian Lat cuts an exchange rate of 0.8030 to the British Pound. Let's face it, the economy is taking a standing count, but the other good things are still very much alive and kicking – vibrant culture, good people, the architecture that is steeped in history and quite often – mystery... So this season once again, hordes of (somewhat more tight-fisted than usual) panting tourists prowled Riga in search of that perfect photo.
Typically, in winter, Riga is an important hub for international business as numerous Russian and European business delegates converge here to hammer out deals and forge partnerships. However, we're all human, as the afternoon begins to wax into evening, we wish to slow down and relax. Regardless, whether we've spent the day in the sweltering heat by the business furnace or on a sweaty sight-seeing treasure hunt, the allure of a good meal and a cold drink eventually gets the better of us and we seek a place to unwind. Many of Riga's fine restaurants truly uphold the city's image as "the Paris of the North" by delighting guests with their exquisite cuisine and crisp service; but unfortunately, these days this image is becoming soiled by spoilers who delight in shocking their guests with preposterous invoices and then extorting money from them.
The Danger – Tourist Traps of Old Riga:
Of late, a few unscrupulous establishments in Riga have run amok with rampant fraud that borders on robbery. They have taken to preying upon the gullibility and ignorance of the foreign tourists, usually capitalizing upon the predictable flaws of the male ego. The racket is childishly simple: two guys walk into a bar speaking a foreign language, they are welcomed by pretty girls who swoon over them (ever see the "Raisins" episode of South Park?), the girls ask to keep the drinks flowing and the guys oblige without checking the menu, of course - not to appear like cheapskates before the nymphs they are now attempting to woo, a few drinks later, a bill arrives for some eight or nine hundred US dollars and... you guessed it: cue the scandal. All of a sudden the temptresses fade away and the guys are surrounded by burly chaps with no sense of humour or pity pointing stocky, chapped fingers at astronomical figures on the menu card and muttering threatening things in Russian.
When business is low, the con-artists expand their web - they send the girls out into the streets and parks to hunt for foreign men and lure the unsuspecting lambs back to their lair, where their wallets will be ruthlessly slaughtered.
These audacious actions have driven the restaurant business to the brink of ruin and threaten to turn Riga's rosy-cheeked, romantic reputation into a dark, notorious one.
Recently, Girts K., an intrepid journalist from Latvia's leading newspaper, Diena, braved the piranha-infested waters going deep undercover to debunk the notorious chicane artists. Posing as Jacob from Amsterdam, he visited Royal pub, seating himself at the bar. The pretty bargirl prompted him to try Lāčplēsis beer for 5 LVL a pint (10 times the price it fetches in the shops); while sipping his overpriced beer he witnessed a brief scuffle as some foreigner was being coerced into paying a large bill and later on an aimless visit from the municipal cops. While staking out the joint, the journalist perused the menu and found brazen prices such as 25 LVL for 25 mil. of Johnny Walker Blue Label (that's 700 LVL for a 0.7 L bottle!); a bottle of Martini Asati sparkling wine, which goes in local shops for five-six LVL is offered here for 230 LVL and one of the cheapest sparkling wines in Riga that sells in the kiosks for a couple of Lats per liter – Rigas Šampanietis is tagged at 1000 LVL. To get a rough estimate in US dollars, multiply the LVL values by a factor of 2.
Eventually in came one of the huntresses on the prowl for benign males to exploit and joined him at the bar. Girts writes that she was an ordinary-looking blonde in her early twenties (he notes that judging from her appearance, tipsy tourists are probably not too discerning), however, she was overly friendly and loquacious goading him into innocent conversation. They swapped bogus stories – he played the gullible foreign businessman and she, the starry-eyed student on break for a couple of days in Riga from a fictional department of Liepāja's Uni. The bargirl drifted over and inquired whether "the gentlemen would like to buy the lady a drink", Girts replied "no, we've only just met". As the evening wore on, the journalist allowed himself to be talked into paying for a drink for this Kristine, who quickly ordered a 30 LVL-Martini cocktail. Shortly thereafter, Kristine's good friend Eva materialized at the bar, the girls acted giddy with surprise and delight at the "chance" meeting and tried to milk Girts for another drink, this time for Eva. Kristine said to Eva in Latvian "probably we can squeeze no more out of this one". Girts stuck to his role of the dumb foreigner and said that he couldn't buy Eva a drink because he was short of cash, hearing this the girls brightened up and crooned, oozing with cloying sweetness "We'll be happy to escort you to a bank machine...". At this point Girts could contain his disgust no longer and decided to cut the charade, quit the experiment and blow his own cover. Suddenly the soft Dutchman transformed into a local with an attitude, speaking in perfect Latvian he asked Kristine "So how much do you expect to be able to squeeze out of me then?". After a brief speechless fit, Kristine stormed out closely followed by Eva who left a single shriek of "IDIOT!!" ringing in the air marking their departure. Girts had a few words with the bargirl, who denied any knowledge of the wrongdoings and said that she was new at the job, earning just a measly 15 LVL per shift – all the profits are regularly fished out by the owners. It seems the entire convoluted company is run by an unscrupulous syndicate that operates several establishments in the Old Town by this ruthless formula. As you will see below, they regularly change names of their tourist traps, but not their deceitful policies.
On 7 July 2009, the Regional Security Officer at the American Embassy in Riga placed the following establishments off-limits for American staff, their family members and TDY official visitors:
1. Babylon (formerly Roxy Klub) – Kaļķu 24, Riga; located near the entrance to Old Town on Kaļķu street.
2. Royal (formerly Lord's Pub and Groks Pub) – Kaļķu 22, Riga; located next door to Babylon (formerly Roxy Klub).
3. Saxon – Laipu 7, Riga; located near Līvu Square in a small street to the right of restaurant Steiku Haoss.
4. Foxy Lounge – Tērbatas 2, Riga; located below the "Fashion Café" in the basement of the Vegas casino at the corner of Tērbatas and Merķela streets near the flower market.
5. Infinity Bars (formerly Bar Fly) – Vāgnera 8, Riga; located near Līvu Square in a small street to the right of Babylon (formerly Roxy), Royal (formerly Lord's and Groks) and Puzzle (formerly Pink Panther).
6. Mary – Audēju 13, Riga; located on the east side of Galleria Center Mall in Old Town.
7. Pussy Lounge (formerly Doll House and Zig Zag) – Mārstaļu 12, Riga; located to the right of Reformed Church.
8. Puzzle (formerly Pink Panther) – Kaļķu 22, Riga; located next door to Royal (formerly Lord's Pub and Groks Pub).
9. Roxbury (formerly Mademoiselle Cigar Club) – Vaļņu iela, Riga; located in Old Town across from Lounge 8.
10. Versace – Mazā Jaunavu, Riga; located down a dead end street in Old Town.
11. Zephyr Bar – Audēju, Riga; located near Galleria Center in Old Town.
12. Cognac Bar – Baznīcas 1/3, Riga.
Source: http://riga.usembassy.gov/warden0811.html
To increase awareness, this list is also published in your favourite city guide: Riga This Week.
Travellers to Lithuania and Estonia should be on alert for similar scams – we have received unconfirmed information that the owners of Royal have began breaking ground in Vilnius with a similar operation. A reliable source informed us that since in Lithuania this is a new phenomenon, the authorities are still slow on the uptake and are not treating this cancer as seriously as they should.
The Solution:
Although the police have received numerous complaints from victimised foreigners, the government has been slow to act, electing to distance itself from such scandals. Occasionally a couple of drab, under-paid cops lumber over to the scene of the scandal and half-heartedly question those involved (who are still present) or take in all concerned for disturbing the peace. Great, I bet that will make you want to visit Riga again, right? You've been ripped off, bullied and now as a coup de grace of your evening, to add insult to injury you get to spend the night in a cell with your assailants. The trouble is that we live in a capitalist system, so in theory, every businessman can set his prices however high he chooses and it is up to the consumer to buy or not buy the good or service. It all works nicely, provided both sides interact with basic decency and respect, but when the client is asked to pay 65 US$ for a small glass of sparkly wine which sells in the kiosk next door at 8 US$ per bottle, things can get hairy. New legislation is required to mandate businesses beyond a certain price bracket to inform clients of the fact prior to providing the ordered service or good even if not specifically asked.
Despite several articles in the press and painful accounts from sore victims, the municipality has pointedly overlooked tackling the issue, so a few valiant restaurateurs have taken their salvation into their own hands and formed an organization aimed at informing and protecting their clientele.
The Cornerstones of World Business was able to interview Agnese Stafecka, one of the founding members of the Vecrīgas Godīgu Krodzinieku Apvienība, VGKA (Honest Restaurateurs Union of Old Riga). Here are a few excerpts from that interview:
- CSW: What is the risk posed to tourists on the large scale by these establishments?
To put this question into proper perspective, one must note that there are about 800 eateries and bars registered in Latvia, of which some 300 are located in Riga. The vast majority of these establishments are honest and work hard to meet every whim of their patrons. As you have seen, the U.S. Embassy watch list consists of just 12 known miscreants, that is just some 4% of the places available to the tourists to choose from, so despite their mostly favourable locations, these places are responsible for just a couple of tragic incidents per thousand tourists. Rest assured that we feel that even that "couple" of cases is that much too much. However, the wave of negative press that has engulfed the industry as a result of their evil activity hurts honest entrepreneurs far more than it does the tourist traps, which rely on one-time business anyway.
- CSW: Do you believe that the establishments on the U.S. Embassy watchdog list are engaged in criminal activity?
Yes. This is organized crime, they take advantage of technicalities, loopholes in the law and inadequate litigation procedure to swindle people. Whenever things get too out of hand and the police shuts them down, they simply reregister under a different company name and start over, usually in the same location.
- CSW: What steps is your organization taking to combat this wolf in sheep's clothing?
We are not an official municipal body; although we are powerless to affect the situation directly, as concerned citizens, we tirelessly lobby the police and government officials to note any injustice and take appropriate actions. We are attempting to expand our organization in order to increase our influence with the local authorities and to create tourist protection and awareness regulations.
- CSW: How severe is the reputation damage caused to the industry by these predators?
The media has spun this story world-wide, creating a fear-factor which hurts the honest entrepreneurs far more than it does the rogue establishments. This is why we founded the VGKA and launched the "Tourist-Friendly Riga" initiative, so that travellers to Riga know whom they can trust.
- CSW: What are your association's plans for the future?
In the near future, we aim to widen our horizons to encompass hotels and taxi companies. We also plan to spread awareness and combat fraud on the legislative front in other Latvian cities to make Latvia a safer destination for tourists.
- CSW: Admirable. How do you screen your members?
Not all are welcome – before a member is approved, a stringent background check is undertaken with the help of the Police department and Riga Tourist Authority. Any applicant with a less than pristine record would be identified and denied membership.
Here is an abridged version of some of the principles, which the VGKA members have signed to respect and uphold:
- The same pricing policy applies to all customers, regardless of their ethnicity or language spoken;
- The menu is available at least in English, Latvian and Russian;
- The serving staff is fluent at least in English, Latvian and Russian;
- When using a credit card as a medium for payment all actions are legitimate;
- The customer is made familiar with all costs of the service prior to receiving it.
- If a certain percentage is charged for the service, the amount is noted in the menu;
- Safety within the premises is guaranteed;
- If the bill exceeds 250 LVL the customer is informed prior to the order;
- Staff training sessions and service quality evaluations are executed on a regular basis;
- VGKA communicates with embassies and municipal authorities as well as with the police.
- Customers are offered free information on safe entertainment in Riga.
Source: official website of VGKA & Tourist Friendly Riga
Some advocates of fairer trade suggest that the government should cap prices at a certain level, for example 400% of average retail value. However, most owners of decent restaurants do not back this proposal either, as they claim that this would be a bad move for the business and hard to regulate. Restaurants occasionally buy goods at retail value or even higher and a cap on prices would cause business to suffer more problems than would be solved as a result of such a limitation.
Although recent reports of abuse have forced Riga to don the crown of thorns and serve as the current pariah for this scam, similar cases have been recorded in London, Amsterdam, Berlin and practically in every large city around the world. So heed this warning: stay on your toes when away from home, especially if you do not speak the local language. Avoid unguided nights out on the town, make sure you can trust your guide (i.e. do not rely on someone you've just met on your trip) and always check before ordering what the service, meal and/or drinks cost, no matter how trivial your order may seem. If you are told your credit card does not work after you type the code in once, check your balance before allowing the waiter to make another attempt at withdrawal. If you are inclined to go out and party, check out your intended destination(s) through local city guides, tourist information centres and/or your embassy to ensure that he establishment's reputation meets your standards...
One would think that these are obvious rules-of-thumb not just when travelling, but in our daily lives as well, like "don't leave your drink unattended", "lock your doors when leaving or retiring" and "don't give people signed blank checks", common, basic sense, right? Wrong. You must always keep your wits about you when in a strange land, but for some reason we tend to throw caution to the wind and live dangerously when enjoying pleasant company – this is when we're most vulnerable to predators. Beware, as this may be a folly you are unable to afford.
You must take responsibility for your own safety and wellbeing. If you have had the misfortune of stumbling upon or falling prey to some consumer-related scam in Latvia, file a complaint and try to warn other travellers through the press. If you have been ripped off by any Latvian company, report your mishaps to the 24h Tourist Hotline for immediate legal assistance: tel. 67001188, hotline@latviatourism.lv. Another good place to report to would be Consumer Rights Protection Centre (CRPC), founded by the Latvian Cabinet of Ministers in 1998. This agency mainly deals with non-food trade, but they are likewise bound "to handle consumer complaints on violations of consumer rights" and "to provide legal advice for consumers in consumer rights". CRPC will no doubt provide you with useful consultations and point you in the right direction to get your case heard and hopefully, resolved. In addition, we suggest you visit http://www.dolceta.eu/ (preferably before you leave you travel) for some insightful guidance and education on your rights as a consumer. Be smart. Stay safe.
© Oleg K. Temple, CornerstonesWorld.com, 2009.
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