Papa John’s recently announced its withdrawal from Kazakhstan and Kyrgyzstan after losing market share to more flexible regional rivals such as Dodo Pizza, analysts at Teniz Capital Investment Banking said.
The U.S.-based pizza chain entered Kazakhstan in 2018, opening 15 restaurants but failing to keep pace with fast-growing local competitors. Some former locations have already been taken over by Bellissimo Pizza, a Uzbekistan-based chain.
Shift toward regional, tech-driven chains
«Papa John’s departure shows a profound structural shift: international franchises with traditional operating models now yield to tech-savvy, flexible, and rapidly scalable regional chains,» Teniz Capital Investment Banking analysts wrote in a recent review.
The analysts identified Dodo Pizza as the primary beneficiary of this shift, noting that its business model differs significantly from traditional fast-food operators.
Dodo Pizza’s rapid expansion
Dodo Pizza operates more than 100 pizzerias and 14 Drinkit coffee shops in Kazakhstan and continues expanding rapidly across other Central Asian markets.
«Papa John’s is not simply leaving as a well-known international brand,» analysts said. «This marks a new era in the fast-food market, as companies with advanced digital infrastructure, flexible and scalable franchise models, fast decision-making, and proven financial stability now win.»
