Digital 52 2️⃣0️⃣ - How can coworking positively impact the local work culture? The story of Terminal.
Coworking as a trend has entered different regions of the world at different times. How can the openness promoted by the coworking model actually impact the work culture of a country? That’s what today’s story will explore.
Market Education - Member Experience
Read the full story of Terminal on page 268 of “Around The World in 250 Coworking Spaces.”
The trend of coworking spaces officially began in 2005, though its arrival in some parts of the world was delayed by over a decade. The story of today takes us to Tbilisi, the capital city of Georgia - a country at the crossroads of Europe and Asia, which has a long history of communist influence. In Tbilisi, we find Terminal, a coworking brand that has been working tirelessly since its opening in 2018 to transform the local work culture, promoting openness and collaboration. The journey has not been easy, but the persistence and hard work of the Terminal team has made it the fastest-growing startup in Georgia. How did they achieve this? Keep reading to find out.
➡️ A little refresher
Who’s behind the featured space?
Meet David and Eka Tushishvili, brother and sister who founded Terminal in 2018. “Upon returning from living in Europe and Canada, it was evident that the Georgian market lacked proper workspace options for freelancers and small companies. Many resorted to working from home or cafes, making it challenging to secure office space in business centers. Recognizing this gap in the market, we decided to launch the first coworking space in Georgia, despite the risks associated with introducing an innovative concept in a region where the “Caucasian character” might not easily adapt. Nevertheless, the first branch was established, offering a combination of 80 individual desks and 2 meeting rooms, filling a much-needed niche in the market.”
Meet the Terminal team ⬇️
➡️ Key Figures
- Opening year: 2018
- Size when they started: 1 space in Tbilisi, the capital city
- Size today: 7 spaces in 2 cities - 9,000 sqm in total.
➡️ A little tour around Terminal
➡️ Behind-the-scenes
Things you didn't read in aw250cs
While bringing to life Terminal was one thing, bringing members to the space was another. “It was difficult to get people interested in our coworking space. The challenge still persists as there is still a low demand for such spaces in comparison to developed regions in America and Asia. The traditional Georgian mentality towards communal work environments was a hurdle, with some individuals resistant to the idea of working alongside individuals from different professions. Despite these challenges, Terminal has become the largest and fastest-growing coworking space in the country.”
How did David and Eka build the interior design of Terminal? By finding inspiration while traveling, exploring different coworking spaces in Europe and beyond, and noting down what they found interesting and relevant for their own market.
We have members who understand the concept of coworking and also members who are new to it, including foreigners. We have worked hard to educate people and create a community within our spaces.
Jino Dollini, CEO at Terminal
➡️ Terminal Today
7 spaces in 5 years, in a market that’s fairly new to coworking, and with a pandemic in the middle of it all, that’s quite impressive. How did the Terminal team reached such heights? That’s what I wanted to hear from Jino Dollini, CEO of the brand. As you are about to learn, the journey has been paved with challenges and learnings, but through it all, the team never lost sight of their vision: “become the home of the most innovative projects and teams”.
💫 New Openings, New Challenges?
What has fueled the growth of Terminal? Increasing demand for more flexibility at work, as well as hard work in educating the market about what coworking is and how it works. How do you show people that your nice-looking space is not a burger joint but an actual workspace? (A story that did happen at Terminal). Scroll down and read it from Jino!
💬 I’d like to start by asking you: what’s new at Terminal since the book came out?
We have opened two more branches since the release of your book. In December 2021, we opened a branch in the Left Bank of the capital, and in September of this year, we opened another one in Batumi, a seaside city located five hours away from Tbilisi. So now, we have a total of seven branches, which is a great accomplishment.
💬 Terminal has had a fast growth. 5 spaces in 4 years, that’s really impressive. What were the signs letting you know you guys were ready for growth?
The key challenge was the occupancy rate. Before the pandemic, we were operating two branches with a 99% occupancy rate, which was a positive sign for growth and expansion into new neighborhoods.
Then, in February 2020, we opened a third space, and two more were under construction. When Covid hit a month later, we had to close our newest location, which was very scary. All our spaces remained empty until the end of the lockdown in July 2020.
We were very worried and wondered if we would have to close the business, but thanks to our good reputation and high demand before the pandemic, we were able to maintain all of our staff with full salaries.
Once the pandemic was behind us, our business started to recover, and the occupancy rate was the main factor driving our growth. The demand was increasing day by day, especially in the fall of 2021, and it was clear that it was time to expand further, so we did.
💬 Speaking of growth, is there anything you would have done differently when it comes to approaching growth?
I would do things differently in terms of the layout. After seeing many coworking spaces in Europe and the US, I realized that we have a higher percentage of open spaces compared to private offices, while other coworking spaces have the opposite. Initially, I thought coworking meant everyone working together in a shared space, rather than in private offices like in traditional business centers. However, I was mistaken and I would adjust the ratios to be more balanced, maybe 50/50 instead of our current ratio of 70/30 or 75/25 with more private offices. This would provide more stable and guaranteed revenue.
Additionally, I would create designated quiet and loud zones based on the feedback and experiences of our members. This would improve the overall experience and atmosphere of the coworking space.
💬 In your story, you talk about “the Georgian Mentality” when it comes to working habits, which is a really interesting topic that many of us can relate to. How have you succeeded in changing people’s mentalities towards coworking in Tbilisi?
I am proud to say that we have successfully introduced the coworking culture in Georgia. Before, we would receive daily questions from people about why they would have to sit next to an accountant, freelancer, designer, or any other professional person and share things or wash their own dishes.
However, after five years of operation, we rarely receive such questions. When we attend events outside of the coworking space, we sometimes hear such questions, but within the coworking space, people are familiar with the culture.
We have members who understand the concept of coworking and also members who are new to it, including foreigners. We have worked hard to educate people and create a community within our spaces. This was especially important in Georgia, which has a Soviet-era background. I feel we have succeeded in our mission.
💬 Interior Design is a big part of Terminal’s concept. How do you approach it for each space?
Interior design is a challenging topic because designers are very creative and their ideas have no limits. With modern technologies, they can achieve anything they desire.
So, we have to work closely with the head of the design team, who is also one of the co-founders, to come up with the best solution that meets the needs of our members and incorporates our previous experiences and lessons learned.
It's important to find a balance between comfort and visual appeal, and each of our seven branches should have a unique environment while still maintaining a consistent signature for our brand. It's a difficult job, but we are learning from our mistakes and improving along the way.
💬 In the book you say “We are the community of the future, our doors are open to any person regardless of race, gender, or nationality. We are like in an airport terminal – people come with specific plans and goals, and hurry to achieve them.” I find this idea of a community of the future really interesting. Can you expand on it?
The members of Terminal play a crucial role in shaping the future of the country and bringing it closer to Europe. Terminal values equality as a top priority and creates a safe and comfortable environment for all members, regardless of their background or status. Racism and sexism are not tolerated.
Terminal operates as a level playing field, where every member, whether a student or the head of a corporation, is treated equally. Terminal also provides employment and education opportunities for students, which contributes to the growth of the community and the country. The ecosystem created within Terminal helps drive positive change in society and supports the local economy.
We also apply this to our team. We have around 90 employees, some of them are students. By educating them, they then share their knowledge with their friends and family members, leading again to more positive change for the community and for our country.
➡️ Reflections on building Terminal
💬 What has been your biggest learning out of bringing to life AND growing Terminal?
My biggest personal learning experience was when I started working at Terminal. I came from the sports industry and then the hospitality industry and initially, I was skeptical about coworking in Georgia because of the mentality here. But I accepted the challenge and now, I believe that nothing is impossible. If you have willpower, work hard, and have the courage, you can achieve any goal you set.
The second important lesson I learned is about teamwork and being a good leader, not just a manager. It's important to have the right team and approach them in the right way, with equality and fairness. Being a good leader and developing leadership skills not only benefits personal growth as a CEO but also helps the company grow.
💬 What would be your best advice to someone thinking about opening a coworking space?
I strongly support the idea of opening a coworking space. There is a lot of demand for it, with new spaces opening every month in Georgia.
I would advise anyone considering opening a coworking space to go ahead with it. I am also willing to share my experiences and insights to help in any way I can.
It is important for us to build a supportive community and share our experiences, both successes, and failures.
💬 If you could chat with coworking operators now, what would you like to ask them?
💬 And if you could chat with coworking members?
I would like to know about the importance of free coffee. Is it more important for people to have free coffee or to pay less for the membership and buy coffee whenever they want?
We have a cafe/cafeteria where we sell coffee. We have specialized machines, a barista, and you can purchase coffee from them. We also offer a self-service kitchen where coffee is free. I am now comparing both approaches which is why.I would like to hear feedback from customers about the importance of free coffee in their decision-making process
💬 Last but not least, what’s your biggest dream for Terminal?
Everyone has big dreams. Mine is for Terminal to be the leading coworking space here. Our current goal is to make a decision on whether to expand in Europe and Dubai or have a good exit.
WeWork was an inspiration to me, despite the challenges they faced in 2017. They are a leading player in the coworking industry and their design, layout, and structure are impressive.
My biggest dream would be if they approached us and expressed interest in expanding to Georgia. I admire the way they work and the structure they have put in place!