"Popeyes chickens are always fresh. Compared to our competitors, we cook with fresh meat, not frozen," Eldar Abdrazakov began his tour of the kitchen at his fast-food restaurant. The owner of the financial and insurance holding Centras Group acted as a guide for host Viktor Burdin during an interview for the YouTube channel Forbes Kazakhstan.
"The meat is marinated for at least 12 hours in a special Louisiana sauce. Then a special batter is used, which ensures juiciness. After that, it goes through a flour coating process, which is done by hand, and then the chicken goes into specialized fryers. These fryers are automated and maintain a specific temperature regime, so when the cold chicken is fried, all the juices stay inside," Abdrazakov detailed the entire process knowledgeably.
Naturally, the first question from the host was about why a businessman, who had spent many years in investment and insurance, suddenly ventured into the restaurant business.
"I probably surprised everyone because many still ask why I'm involved in this business," Eldar Abdrazakov acknowledged and explained: "In 2017, we decided to become a marketing company: to learn how to sell correctly and create value for products. We decided to focus on premium products and try to develop new categories in new types of products where we could bring in quality standards and higher professional expertise. It so happened that before the pandemic, the holding Restaurant Brands International (RBI), which was already operating in Kazakhstan through its Burger King franchise, approached me. They own the Popeyes brand and suggested that I engage in the development of this franchise here in Kazakhstan."
Abdrazakov recalls that it took two years of contemplation, but "given that we wanted a business that better understands consumers, we realized that fast food restaurants are an interesting step for us in working with Kazakh consumers."
How much does it cost to open a global brand restaurant in Kazakhstan, the host asked the studio guest. The largest investments, about 60%, go towards kitchen equipment, the businessman replied. In monetary terms, this amounts to $300,000 to $400,000. Plus, there are expenses for preparing the premises, access to infrastructure, etc. Ultimately, according to Abdrazakov, depending on the location (standalone or in a shopping center), one restaurant will cost between $500,000 and $800,000. The company plans to recoup its investments in seven to eight years. Currently, there are six Popeyes restaurants open in Almaty.
"Eldar Sovetovich," Viktor Burdin addressed him with another question. "You are already well-versed in the restaurant business and franchises. I've always been curious: there are very large international chains that have not been represented in Kazakhstan for decades, such as the Subway or Domino's Pizza brands. Why is no one from Kazakhstan bringing these brands to Kazakhstan, and why are they not initiating this opportunity themselves?"
The reasons provided by the studio guest varied for different brands. "There have been attempts; I know people who wanted to bring Domino's Pizza here, but pizza is a low-margin product that is very easy to replicate. It's quite simple to repeat pizza and ensure its quality," the entrepreneur believes.
As for Subway, Abdrazakov thinks this brand "does not match the pace of Almaty residents." "So far, our people are not ready to eat a sandwich in that form. We studied Subway and see that there is currently no readiness among people to grab a sandwich on the go for a snack. Our [people] are more inclined to grab pastries, samsa, but not a Subway sandwich. It will probably come, but it may take another five to ten years," the businessman suggested.
Abdrazakov also discussed whether Popeyes would raise prices with the increase in the dollar exchange rate, who chose the locations for the restaurant openings, and why the flour for the batter has to be sourced from France. In addition to the restaurant business, the interlocutors talked about Eldar Abdrazakov's work in the banking and insurance sectors, such as why he sold shares in ForteBank and what his relationship with the bank's shareholder Bulat Utemuratov was like. Find the answers to these and other questions in the full interview.