A young population and a growing appetite for new experiences make Kazakhstan an increasingly attractive destination for international brands. However, launching a sustainable business in the country requires more than introducing a well-known name — it demands long-term investment in local capacity, infrastructure and market-specific adaptation.
Fast food landscape
Kazakhstan’s fast food industry has evolved steadily over the past two decades, attracting international players such as KFC, Burger King and Hardee’s. However, not all market entries have proven sustainable. McDonald’s, once a major player operating through a supply chain linked to Russia, exited the country in 2023 amid geopolitical tensions. Its restaurants were rebranded as «I’m.»
Meanwhile, other brands have continued to expand their regional presence. Dodo Pizza, a leading quick service restaurant (QSR) chain originally from Russia, recently redomiciled to Kazakhstan’s Astana International Financial Centre (AIFC), as the center has emerged as a relocation hub for many international and regional businesses.
More generally, Kazakhstan’s foodservice market was valued at $2.4 billion in 2024 — placing it second among selected CIS countries, behind Russia’s market estimated at more than $30 billion, according to the INFOLine consulting agency.
Localization in practice: lessons from the field
Despite growing competition from local fast food companies such as Bahandi, international brands remain interested in entering the Kazakhstani market. A recent example is Popeyes, the U.S.-based fast food chain that opened its first restaurant in Almaty in 2023. In less than 18 months, the brand expanded to eight locations in the city. The launch was led by local partners who adopted a strategy focused on adapting international standards to local consumer expectations.
According to Eldar Abdrazakov, a Kazakhstani businessman involved in the launch, long-term success depends not just on brand strength but on localized marketing, cultural understanding and operational flexibility.
«Marketing plays a primary role — any brand, even a global one, needs to be carefully adapted and promoted with local nuances in mind,» he said.
Operational challenges and infrastructure gaps
Kazakhstan’s vast geography and uneven infrastructure present logistical challenges for foodservice operators. Companies often need to develop their own supply chains — including production, storage, transport and distribution — from the ground up.
In addition, maintaining consistent product quality aligned with international standards requires regular staff training, operational oversight and quality control systems. Independent assessments such as «secret shopper» visits are often an effective way to monitor compliance.
Equally important is investing in local human capital. In the Popeyes rollout, about 70% of the production chain was localized, with operations managed by a domestic team trained in Spain and Jordan. This approach reflects a broader industry trend: prioritizing local expertise over long-term reliance on international staff.
The true cost of localization
While localization is sometimes framed as a cost-saving strategy, the reality is often more complex. Early-stage investments — such as equipment upgrades, process adaptation and workforce training — can be significant, with returns typically realized over a multi-year horizon.
Building relationships with local suppliers also presents hurdles. Some may lack the capacity to meet international standards or resist necessary operational changes. However, success stories exist. For instance, the poultry producer Prima Kus now supplies several international food brands in Kazakhstan, demonstrating the long-term value of supplier integration into global systems.
What investors should consider
Kazakhstan offers a growing market for international food brands. However, success depends less on global name recognition and more on effective local execution. Localization, logistics, workforce development and supply chain management are core components of any sustainable strategy, as the Popeyes case illustrates.
All in all, it is clear that companies willing to adapt to Kazakhstan’s specific business environment and invest in building from within are more likely to succeed and potentially use the country as a launchpad for further regional expansion.
