"Koenig said Mr. Snack will become Ukraine's second largest fast food chain when it opens its fourth outlet at the Druzhby Narodiv metro station later this month (December, 2000). Koenig said he and Nebiger have recently attracted foreign partners, a move designed to fuel the chain's further growth."

"The overseas partner is Greece-based Commercial Capital, a company that has already pumped more than $ 10 million into various ventures in Ukraine. Vadym Gruzyn, who heads Commercial Capital's representative office here, said his company has projects in chemical production and distribution, real estate and consumer goods in Ukraine. Gryzyn said his company, now a co-owner of Mr. Snack, plans to invest $ 2 million into the chain."

"Plans are to open nine Mr. Snack restaurants in the city with 15 months."

"This is now Europe's fastest-growing fast food market." said Chris Kamtsios, investment director at Commercial Capital."

"Just two years ago, Ukraine's fast food market was non- existent. Today it is booming. McDonald's has 43 restaurants scattered across the country and a number of local firms have popped up to compete for consumer attention."
"Ukrainian players joining Mr. Snack on the market include Shvydko, Domashnya Kukhnya and Mak."

"Koenig singled out his restaurant as the first fast food entry to specialize in providing inexpensive sandwiches for the city's hungry masses."

"We felt there is a demand for sandwiches in Kyiv, especially at affordable prices,' he said."

"Mr. Snack offer customers about 20 ingredients for sandwiches, with a full meal going for about Hr 9. It also serves Pepsi, beer and desserts. All of Mr. Snack's ingredients are locally processed, Koenig said, compared to about a half of McDonald's Ukrainian produced ingredients. Koenig said he expects the four Mr. Snack outlets to serve about 2,500 customers a day."

"Koenig says the key to Mr. Snack's future success will like in securing prime locations for new spots. He said he and his partners are now working closely with local brokers and municipal authorities on the issue."

Two home-grown entries in Kyiv’s burgeoning fast-food market, Mister Snack and Mak Smak, have been successfully serving sandwiches, pizza and desserts, and both have aggressive expansion plans.

The first Mister Snack outlet opened on Horodetskoho in 1996. Today, the chain comprises seven restaurants, including its most recent restaurant on Tolstoho, which opened in February. Mister Snack was founded with a $2 million investment from Commercial Capital, a Greek firm.

Mak Smak unveiled its first restaurant two years later in the Pechersk metro station. Today, seven Mak Smak restaurants dot Kyiv. The latest one opened in the Samson shopping center on Kontraktova Square.

Mak Smak founder Yury Tkach said that he invested $50,000 in his first six-table restaurant.

“The concept worked once,” said Tkach, “so there was no reason why it should not work again. We began to expand.” Despite stiff competition, both companies have expansion plans.

Mister Snack plans to add up to four new restaurants by the end of the year and said that it will begin offering units to franchisees next year. Its primary competitor, Mak Smak, also has set its sights on franchising its brand. A successful franchise program could mean that both brands will open dozens of outlets across the country within several years.

Presently, both companies have confined their operations to Kyiv.

“We are thinking about expanding to the fast-food market outside Kyiv soon,” said Falk Nebiger, who with Robert Koenig owns Arizona Group, which operates Mister Snack, as well as the Arizona BBQ, San Tori, Edelweiss and Kozak Mamai restaurants.

Both fast-food restaurants are well-designed, modern operations catering to cost-conscious consumers. Mister Snak offers about 20 different sandwich fillings, with a full meal going for about Hr 9. It also serves pizzas, Pepsi, beer and desserts. Mak Smak has sandwiches and 11 varieties of pizza, sold whole or by the slice.

Both restaurants use local ingredients and say they serve about 2,000 customers a day per outlet.

To capture late-night diners, both chains include some outlets that are open 24 hours. Mak Smak began delivering its products earlier this year.

“Despite the competition, we plan to grow and develop our restaurants,” said Mister Snack’s Nebiger.

Building a successful chain of restaurants means relying on customer feedback to develop their menus, hone service and ensure quality.

“We have a small restaurant,” Tkach said. “Our customers talk to us, and give us advice.”