Transformation of Public Catering Establishments in the Fergana Valley: Privatization, Modernization, and Contemporary Challenges

1. Introduction

After the Republic of Uzbekistan gained independence in 1991, it, like other Central Asian countries, sought to transition to a market economy [1]. The transfer from state ownership to the private sector was one of the first steps in this process. On the eve of independence, the activities of public catering establishments and the food trade were directly dependent on state agencies. Essential products, particularly flour and sugar, were largely supplied from neighboring republics. Canteens, cafés, and restaurants belonged to state bodies, while public catering enterprises across the republic were managed by commercial organizations under the State Trade and Industry Inspectorate Food Trust; their supplies and operations were subject to state control. In particular, food shortages during the early years of independence also affected catering trusts. Following the dissolution of the Soviet Union, difficulties arose in the delivery of goods to the republic. To alleviate these shortages, Uzbekistan developed a Concept for the Development and Production of the Republican Grain Products Industry for 1991–1995, under which the national grain industry continuously sought to maximize the production of all types of products and comprehensively improve their quality [2]. Relations with foreign countries were established and modern equipment was introduced. In particular, the import of dough-processing equipment from Austria and new packaging equipment from Switzerland significantly improved food supplies to the population and helped meet the requirements of the market economy [3]. Agreements were also concluded with Kazakhstan to prevent shortages of grain and flour products. Joint ventures were established in various regions of the republic. In Fergana Region, pursuant to Resolution No. 790 of the USSR Council of Ministers dated 8 July 1990, “On Measures for the Establishment and Development of the Uzbekistan–Russia–Switzerland Joint Venture ‘Navruz-P’,” the Fergana regional enterprise “Navruz,” specializing in fruit and vegetable processing, was leased. In accordance with this decision, the Charter of the Uzbekistan–Russia–Switzerland joint venture “Navruz-P,” aimed at improving production and related services, was registered. The principal activities of the joint venture included the purchase, production and processing of agricultural products, food production, and public catering; its operations were carried out in accordance with a charter based on the legislation of the USSR and the Republic of Uzbekistan [4]. On the eve of independence and in the subsequent period, public catering establishments were subject to regular supervision by authorized organizations. Catering enterprises and food trusts that failed to meet state standards were closed. Measures were also developed to establish cafés and restaurants in densely populated areas where catering facilities were insufficient [5]. Privatization and the development of small business contributed to an increase in canteens and cafés throughout the valley [6]. Around the beginning of the 1990s, food trusts were subject to strict state control, and many food-service establishments—restaurants, cafés, and canteens—provided standardized services to the population. In Andijan, Namangan, and Fergana regions, public catering and food outlets belonged to Matlubotsavdo LLC (Limited Liability Company) and the “Ferganataom” organization and, beginning in 1993, were gradually transferred to the private sector. For a certain period, school, kindergarten, and university canteens continued to receive food supplies financed by the state [7].

2. Materials and Methods

The formation of market relations and implementation of economic reforms in the Fergana Valley brought fundamental changes to the public catering system. In particular, the privatization of state-owned catering outlets, the emergence of new private business entities, and the transformation of the production, distribution, and consumption of food products altered the development trajectory of the sector. However, the economic as well as historical, cultural, and tourism significance of these processes has not yet been studied comprehensively enough. The chronological scope of the study covers the activities of public catering and food enterprises in Uzbekistan during the years of independence, their transition to a market economy, privatization processes, the establishment of foreign relations, modernization, and changes during the COVID-19 pandemic. The principal sources include documents of state and local administrative bodies, periodical press materials, archival documents, scholarly articles indexed in international academic databases, and data on the activities of public catering enterprises. The principle of historicism was applied as one of the main methodological approaches. Accordingly, changes in the public catering system were analyzed not as isolated phenomena, but in interrelation with the political, economic, and social processes that occurred in Uzbekistan. The comparative-historical method was used to identify differences between the period of transition from a centralized economic system to a market economy and the subsequent processes of modernization. A systems approach was also employed. Public catering was analyzed not merely as one segment of the economy, but in its interaction with trade, services, tourism, entrepreneurship, and consumer culture. Processes such as technological modernization, service diversification, and changing consumer demand were therefore examined comprehensively. Another important aspect of the problem is that national dishes, food traditions, public catering venues, and related cultural practices formed in different regions of Uzbekistan constitute important resources for gastronomic tourism. The formation and distribution of food resources and the transfer of public catering enterprises to the private sector should be studied in connection with the development of the institutional and economic foundations of gastronomic tourism. The historical dynamics and interrelationships of these processes have not been sufficiently and systematically addressed in the scholarly literature. From this perspective, a comprehensive study of the privatization of public catering outlets in Uzbekistan, institutional changes in the food system, and the transformation of national gastronomic heritage into a tourism resource constitutes an important scholarly problem. Examining this issue contributes to a deeper understanding of the history of gastronomic tourism, clarifies the role of private entrepreneurship in this process, and helps identify opportunities for the effective use of national gastronomic heritage in tourism development. The main findings indicate that the emergence of the private sector, improvements in service culture, the operation of catering establishments during the pandemic, the introduction of online services and new service formats, and the development of modern management approaches were important factors in the development of the public catering system in the Fergana Valley. At the same time, the efficient use of local food products, the preservation of traditional national dishes, and their integration with modern gastronomic services represent important directions for increasing the region’s gastronomic potential. The development of public catering enterprises not only meets the population’s demand for food products and services, but also creates new jobs, promotes entrepreneurship, and increases local economic activity. Broader recommendations include improving service quality in public catering enterprises, effectively introducing modern technologies, increasing the efficiency of the use of local raw materials and food products, strengthening compliance with sanitary, hygienic, and other regulatory requirements, preserving national gastronomic heritage, developing SSMs and food banks in Uzbekistan, and reducing food waste. Converting local dishes into gastronomic tourism products, integrating public catering enterprises with the tourism sector, and developing a distinctive regional gastronomic brand are also regarded as important prospective directions. These processes create opportunities for the Fergana Valley to become one of the centers of gastronomic tourism that combines national gastronomic heritage, modern service provision, and economic development. By closely linking the public catering system with regional economic development, tourism, and entrepreneurship, it is possible to increase the competitiveness of the food-service market, create new economic opportunities, and promote the gastronomic potential of the Fergana Valley internationally.

3. Results

In Fergana, catering networks frequently operated as public-service institutions, and demand for such establishments was generated mainly by employees and state organizations. In 1990–1991, catering networks remained predominantly state-owned, and the quality of service was relatively low. Local restaurants primarily functioned as public canteens. The privatization of catering networks in Fergana Region began in 1992–1993 and expanded significantly in subsequent years as the economy transitioned to market principles, technologies developed, and international food-service networks entered the market. The expansion of the sector was associated not only with economic growth, but also with rising living standards and changing cultural and gastronomic needs. The development of public catering services in Fergana was shaped by a range of factors, including regional characteristics, socio-economic conditions, and interaction between national and international culinary cultures. Research findings and trade-inspection reports indicate that violations of trade regulations in public catering enterprises declined from year to year. For example, in 1991, violations were identified in 391 of the 456 enterprises belonging to the food trust’s trade and public catering system, equivalent to 85.7 % [8]. These indicators declined after the transition to the private sector began. Between 1990 and 1995, shortages were observed in certain food products, including grain products, confectionery, rice, and some non-food goods. To address these shortages, agreements were concluded with foreign countries, and measures were considered to improve the activities of food trusts and factories, prevent unemployment, and further expand and improve the sector. State-owned institutions, enterprises, and trade organizations were also gradually converted into private property [9]. Public catering establishments were among the organizations transferred out of state ownership, creating opportunities for renewal and further modernization in the sector. Modernization of public catering entails renovating and improving enterprises, adapting them to contemporary requirements, and bringing catering services into line with modern quality standards [10]. In particular, public catering enterprises in the Fergana Valley were gradually privatized and transferred to entrepreneurs. Initially, a Business Fund was established to support entrepreneurship and promote the development of small and medium-sized businesses [11]. The transfer of restaurants, cafés, canteens, and teahouses to the private sector transformed them into forms of entrepreneurship and subsequently contributed to the emergence of a competitive environment. As the number of restaurants, canteens, and cafés increased, especially in the cities and district centers of the Fergana Valley, competition encouraged public catering enterprises to pay greater attention to the quality of both food and service. Today, however, the growing number of catering outlets has also led to food waste in some large and busy restaurants and cafés. Measures are therefore needed to reduce the waste of food and prepared dishes in Uzbekistan’s restaurants and cafés, improve food-waste management and portioning practices, and develop policies for food-waste prevention. Research indicates that small restaurants generate approximately 3–7 tonnes of food waste annually, medium-sized restaurants 10–23 tonnes, and large restaurants 20–30 tonnes [12]. The Andijan, Fergana, and Namangan areas of the valley reflect the region’s ethnographic diversity. Craft centers, traditional markets, and local customs in these areas are of considerable interest to tourists. National cuisine is another important attraction [13]. The potential of cross-border tourism can also be further developed through joint events and festivals. Implementing such initiatives requires improved infrastructure, stronger transport connections, and enhanced cross-border cooperation. Creating favorable conditions for tourists, expanding venues offering European cuisine, providing modern service systems, and offering combinations of national and European dishes can further strengthen Central Asia’s position in the global tourism market. Local residents may also derive economic benefits by presenting their customs and traditions to visitors. Historic cities offer tourists distinctive local products, handicrafts, and traditional dishes. By attracting investment to historic sites and renovating and reconstructing them, cities can become more attractive destinations. This includes investment in hotels, restaurants, and tourism infrastructure and creates opportunities to support local producers [14]. Tourists’ national and religious backgrounds, traditions, and lifestyles should be taken into account, and specialized catering options should be organized where appropriate. The text notes, in particular, the presence of vegetarian visitors among tourists arriving in the country. Services at pilgrimage sites, hotels, and recreational facilities should be adapted to the religion, mentality, and lifestyle of potential guests. Initial steps have already been taken in this direction: entrepreneurs developing tourism facilities have been encouraged to consider multiple visitor needs, including family recreation, affordable accommodation, high-quality and hygienic catering facilities, separate swimming pools for men and women, children’s playgrounds, the introduction of halal-certified food products and services, and relevant training activities [15]. Uyghur cuisine is also widely represented throughout the valley, reflecting the long-standing presence of Uyghur communities in the region. One of the cultural features for which the Uyghurs are internationally known is their national cuisine. Two principal factors are important in characterizing a national culinary tradition: the types of ingredients used and methods of preparation. Dough-based dishes occupy a prominent place in Uyghur cuisine. Dishes such as manti, lagman, manpar, yutaghza, and sangza entered and became popular in Uyghur cuisine through Dungan culinary influence. Today, Uyghur dishes are popular alongside other national dishes [16]. The local economy also develops as tourists are attracted through museums, historic cities, architectural monuments, and festivals—for example, the Babur Park and Museum in Andijan, the Kokand Khudoyarkhan Palace complex, and the Namangan Flower Festival. Visitors to such sites use local hotels and restaurants and show interest in handicraft shops, thereby contributing to economic growth [17]. In 2017, approximately 821 million people worldwide experienced hunger and food-insecurity problems [18]. From 2017 to 2023, the number of foreign tourists visiting Uzbekistan increased year by year. It rose from 2.7 million in 2017 to 6.6 million in 2023, representing a 2.5-fold increase compared with 2017 and a 1.3-fold increase compared with 2022. In 2023, the number of visitors from Japan increased fivefold, from India and Italy 3.5-fold, and from the United States twofold. Of the foreign tourists who visited Uzbekistan in 2023, 80.7 % came from neighboring countries, 11.5 % from other CIS countries, and 7.8 % from other countries. The average length of stay reached 4–5 days, 1.5 times longer than in 2022 (3 days), reflecting the broader facilities created for tourists in the country [19]. During the pandemic, however, as elsewhere in the world, entry into the country was restricted for a certain period and catering establishments were closed. Restrictions on international travel also affected Uzbekistan’s economy. The closure of public catering establishments during the 2020 pandemic generated socio-economic problems. Analyses of tourism activity and resilience before and during the COVID-19 pandemic show that mobility restrictions and border closures led to a 74 % decline in international arrivals worldwide in 2020 and prompted a critical reassessment of the future of tourism [20]. The COVID-19 crisis led to the emergence of new economic and social policies that accelerated a number of structural changes in the tourism and hospitality industry, which in turn affected the hotel and restaurant business [21]. Online delivery services were introduced in public catering establishments, and canteens, cafés, and restaurants began accepting online orders and providing remote services. These online delivery methods proved efficient in terms of both time and cost [22], making their continued use after the COVID-19 pandemic reasonable [23]. During 2021–2025, public catering establishments that had closed or experienced crisis conditions focused on restoring their operations. Numerous new modern restaurants and cafés opened across the Fergana Valley.

It is therefore evident that privatization and the development of tourism directly affected the activities of public catering enterprises. The region is distinguished by its location along historic trade routes, the use of natural food products, and, above all, the long-standing continuity of national and traditional culinary practices. The Fergana Valley attracts foreign tourists and residents from other regions of Uzbekistan with its plov prepared from devzira rice. Teahouses across the valley that preserve long-established traditions of taste and quality remain particularly noteworthy. With increasing attention to tourism development while preserving national and historical identity, the “Margilan City” complex was opened in Fergana Region in a historical and national architectural style. Its historically styled buildings, national-clothing shops, and nationally decorated canteens and cafés have become attractions for tourists [24]. The growing intersection between culinary traditions and cultural identity has been emphasized. Food literacy includes an understanding of food systems, their effects on health, and their cultural significance, and it can serve as a foundation for both innovation and healthy eating practices [25]. To promote healthy nutrition, owners of canteens, restaurants, and cafés throughout the valley have entered into agreements with farmers to obtain fresh and high-quality food products. Entrepreneurs have also sent qualified chefs and staff abroad for professional development in order to improve service quality and master new food-preparation technologies. According to international researchers, a food-literate individual makes decisions that support personal health and sustainable food systems while taking environmental, social, economic, cultural, and political components into account. Food literacy has been described as a concept that enables individuals, families, communities, or nations to protect diet quality through change and to strengthen dietary resilience over time. In the early 1990s, it was first described as the ability to maintain a nutritious diet without deprivation. Since then, the concept of food literacy has continued to develop and has attracted growing interest among nutrition researchers [26]. Two dimensions of food literacy—awareness of nutrition and the ability to understand and communicate food-related information—are closely associated with the quality of household diets. An individual’s level of food literacy is an important factor in determining how effectively healthy eating habits can be maintained. Consequently, academics and a range of public-health stakeholders increasingly regard food literacy as an important component of health promotion. The concept of food literacy goes beyond simply knowing dietary recommendations or possessing good cooking skills; it also encompasses the cultural integration of knowledge about nutrition, health, and the environment. International experience indicates that women tend to pay greater attention than men to healthy eating, the quality of consumer food products, and their calorie content [27].

Table A.1. Main Directions of Transformational Development in Public Catering Enterprises in the Fergana Valley

No.	Direction of Transformation	Nature of the Process	Main Manifestation in the Fergana Valley	Resulting Changes	Historical and Scholarly Significance
1	Privatization and ownership transformation	Privatization of state-owned enterprises and diversification of ownership forms	Transfer of restaurants, cafés, canteens, and other catering outlets to the private sector	Private entrepreneurship and a competitive environment emerged	Reflected the transition from a centralized economic system to a market economy
2	Adaptation to market mechanisms	Adaptation of enterprises from state planning to market-economy conditions	Adjustment of prices and service types to market and enterprise requirements	Greater economic freedom	Fundamental economic changes occurred in the public catering system
3	Influence of foreign economic and cultural relations	Modern technologies, innovations in service provision, and development of gastronomic traditions	Introduction of international cuisines and development of restaurant culture	Diversification of services and gastronomic offerings	Demonstrates the impact of globalization on local food culture and business models
4	Organizational and technological modernization	Renewal of management methods and the material and technical base of enterprises	Combination of modern décor and national styles in restaurants and cafés	A stronger competitive environment	Represents the transition from a traditional public-catering model to a modern service model
5	Service diversification	Emergence of new service types alongside traditional catering	Development of different service formats	More ways to meet consumer needs	Reflected transformation in the consumer market and service culture
6	Transformation of gastronomic and consumer culture	Changing eating habits and rising consumer expectations regarding service quality	Integration of national gastronomic traditions with new international food formats	Diversification of food culture	Revealed the economic, social, and cultural character of the transformation
7	Growing role of tourism	Integration of national and European cuisines and innovation in service provision	Expansion of national and international food assortments and gastronomic services for tourists	Greater role of public catering in tourism infrastructure	Demonstrated the strengthening relationship between tourism and public catering
8	Crisis and adaptation during COVID-19	Impact of quarantine restrictions on public catering enterprises	Temporary restrictions on operations and declines in customer flows and revenues	Enterprises adapted their operations to crisis conditions	Demonstrated the vulnerability of the system to economic and social crises
9	Post-COVID recovery and development model	Post-pandemic recovery and stricter sanitary and hygienic requirements	Introduction of cloud-based services and establishment of delivery services	Adaptation to new conditions	Demonstrated the resilience of the public catering system

4. Discussion

The primary transformation in the food service sector of the Fergana Valley is associated with the transition to market relations following independence. The findings of the study indicate that the processes of denationalization and privatization brought about fundamental changes in the activities of these establishments. In this context, denationalization can be regarded as an institutional starting point that created new opportunities for private entrepreneurship, while the subsequent modernization of the sector was shaped by the interaction of market demand, investment potential, infrastructure, and human capital. The privatization of food service establishments introduced new dynamics into the relationship between consumers and entrepreneurs. In particular, adapting to changes in pricing and facility strategies, as well as service styles, presented certain challenges during the initial stages of the transition. Prior to privatization, food products and prepared meals were sold at state-regulated prices. Following the transition to private ownership, entrepreneurs began to determine prices based on their investments. Price determination largely depended on financial investment, location, managerial capabilities, and the purchasing power of the local population. During the initial years, the number of food service establishments in densely populated cities and district centers increased significantly, and the pace of their development accelerated. This was associated with the emergence of a competitive environment, which led consumers to pay greater attention to the quality of food and services. In order to increase customer flow, entrepreneurs paid greater attention to the decoration of their establishments, introduced modern service practices, and incorporated European cuisine, thereby expanding the range of dishes offered. However, food service establishments in rural settlements with smaller populations were unable to provide a wide range of dishes and modern services in accordance with consumer demand and needs. As a result, the modernization of public catering progressed unevenly across the region. During the period from 2000 to 2020, teahouses, restaurants, cafés, and canteens increased rapidly throughout the Fergana Valley. With the onset of the COVID-19 pandemic, food service establishments faced a severe crisis. Online food ordering has become increasingly popular in shopping centers. Canteens and cafes that adopted online service formats were able to maintain their economic activity, whereas small canteens and cafés faced significant difficulties. In subsequent years, following the removal of quarantine restrictions, cafés, restaurants, and canteens resumed their activities and began to focus on improving their brands. The modern food service sector is no longer assessed solely in terms of the availability and affordability of food. When choosing food service establishments, consumers increasingly take into account service speed, hygiene, the interior environment, menu variety, payment convenience, delivery options, and digital communication. The growing importance of these factors has encouraged businesses to shift from a traditional product-oriented model toward a customer-oriented service model. Consequently, digital platforms, advertising through social media, online ordering, and delivery services have become not only supplementary tools but also components of competitive positioning within the sector.

5. Conclusions

International health organizations recommend establishing food banks (warehouses) and SSMs as mechanisms to help reduce food waste. In the future, the introduction of SSMs and food banks in Uzbekistan could contribute to preventing food waste, supplying necessary food to low-income groups, strengthening the social protection system and food security, and developing food literacy. An SSM (social supermarket) is generally defined as a non-profit social enterprise that sells food products at low or symbolic prices to people living in or near poverty [28].

Food banks are traditionally used to provide food assistance, but they have a number of limitations, including limited choice for users and the short-term nature of food support. SSMs were developed to address some of these limitations. Food banks and SSMs are generally managed by non-profit organizations and obtain supplies from redistributed surplus food or donations. Food banks usually include a warehouse for storing food, which is often pre-packed into parcels for recipients, whereas SSMs store food on shelves and in refrigerators in premises resembling conventional retail stores. Food-bank recipients receive emergency food parcels free of charge. By contrast, recipients at SSMs usually register as members to receive longer-term food support and make a financial contribution for their food, for example through a fixed payment per shop visit or a monthly membership fee. In the literature, SSMs are described as an alternative food-retail model because they offer food at subsidized prices to help low-income consumers manage household expenses—often at 50–70 % below ordinary retail prices or, in some cases, free of charge. Food banks were first established in the United States in 1967 and appeared in Europe nearly two decades later, including in France (1984), Italy (1989), and Germany (1993). The first Australian food bank opened in 1992. The social supermarket (SSM) model is a less commonly used form of food assistance than food banks or food pantries, although the literature indicates growing interest in, and experimentation with, alternative food-aid models. Food pantries testing a “client-choice pantry” model use approaches that more closely resemble the SSM model: they not only allow participants to choose products, but often use physical layouts that facilitate browsing and may also provide supplementary support services. To date, the SSM model has become more widespread in certain regions, especially Europe and the United Kingdom, although terminology varies. For example, SSMs may be referred to as “community shops” in the United Kingdom and “solidarity emporia” in Italy [29]. In Czechia, social super-discount stores have been developed to reduce food waste at the population level by allowing anyone to purchase inexpensive food approaching its expiry date; however, these stores do not require membership or provide additional support services aimed at improving customers’ financial circumstances, life skills, or employment prospects [30]. More recently, Feeding Britain has supported a network of “Affordable Food Clubs” in the United Kingdom. Their purpose is to improve access to affordable food by bringing inexpensive, nutritious products into the communities where people live. The network includes various models, such as SSMs, “open” kitchens, and food buses. It also offers specialized income-maximization support to address broader challenges faced by members, including benefits advice and guidance on credit, debt, and savings. Support can also include community growing, cooked meals, and holiday clubs for children and families. SSMs have the potential to revitalize local communities and strengthen social connectedness. A key observation emerging from the cited research is that SSMs not only provide material food support but also create opportunities for social support and help develop social connections within communities [31]. Additional technological adaptations that may be integrated into the SSM context have also been proposed, including allowing customers to pre-select food online and providing delivery services [32]. Drawing on European experience, the establishment of a social supermarket (SSM) system in Uzbekistan could help strengthen food security and food literacy while reducing potential food waste.