How Kuksov Group turned one restaurant into a Far East dining empire
PrimaMedia, April 22. The restaurant industry in Russia's Far East is grappling with rising costs, labor shortages, and declining demand, yet local players continue to expand by leveraging flexible formats and government support. Pavel Kukсов, founder of the Kuksov Group holding and a seasoned entrepreneur, spoke to PrimaMedia about how his company not only stays afloat but thrives amid turbulence—thanks in part to backing from the Primorsky Territory Development Fund.
The Kuksov Group portfolio spans a variety of concepts: the ramen chain Umami, Crust pizzeria, Michel Bakery and Mono Coffee cafés, the cheese-focused Syrovarnya restaurant, Tbilissimo—a Georgian restaurant with Italian flair—Milk & Honey, a family-friendly Mediterranean eatery, and seasonal projects like Sunset Ashram and the Pier No. 7 food park.
The oldest among them, Milk & Honey, has been operating in Vladivostok since 2011. Founded in 2003, the holding itself played a pivotal role in shaping the city's dining culture and nightlife scene.
"Our portfolio is dynamic—we're always refining, transforming, or scaling something. We create projects we'd want to visit ourselves. Our goal isn't just to 'open another outlet for the market'; we build authentic, character-driven concepts. If an idea doesn't resonate with us internally, we won't pursue it—even if it seems trendy," Kukсов explains.
Over more than two decades in Primorsky's HoReCa sector, the business has grown from a single family restaurant into a diversified holding with formats ranging from cafés to full-service dining. Its defining strength is a systematic approach: not just isolated success stories, but a structured process for launching, developing, and sustaining venues—including the timely closure of underperforming projects. Yet the team remains open to experimentation, testing new concepts for viability and long-term potential.
"Closing a project is always the result of multiple factors—shifting foot traffic, a concept losing its appeal, or financial unsustainability. When we shut down Cuckoo and Ku2, it was a deliberate pivot away from nightlife to focus on restaurants. Emotionally, it's never easy, but after 20 years, you learn that closures are part of the business. The key is to learn and move forward," Kukсов reflects.
The holding's long journey has been marked by numerous challenges, including regional hurdles that create systemic constraints. These range from the Far East's remoteness—complicating logistics and driving up supply costs—to seasonal demand fluctuations and chronic staff shortages.
"We manage to stay afloat through systematic work: we collaborate directly with suppliers, optimize our menus and procurement, and try to retain as much of our team as possible within the holding. Honestly, we've simply grown used to operating in these conditions—it's become the norm for us," admits Pavel.
External economic pressures over the past few years have added to the strain. After the pandemic, supply chains shifted, costs rose, and consumer spending declined.
"The market has become far more sensitive—guests are spending more carefully and visiting less often. We stay afloat by staying flexible. We adjust our menus, formats, and teams quickly when needed. And we keep a very close eye on the numbers—right now, that's critical. Diversification also helps: we don't rely on just one format, but several, and they weather crises differently," says Pavel.
The 2026 tax reform has also been a major factor, further squeezing profit margins. In response, the holding has revisited its project economics: cutting costs, adjusting prices, and tightening efficiency controls.
"The past few years have been one of the toughest periods for business. Several factors converged at once: falling incomes, rising expenses, and high uncertainty. Crises happened before, but they used to be more localized. Now, the pressure is coming from all sides. Only those who can adapt quickly and manage their finances wisely will survive," Pavel believes.
One source of support for the holding has been collaboration with regional development institutions—the Primorsky Krai Development Fund and the Moy Biznes (My Business) center.
"I learned about these opportunities through Vladivostok's business community. Our city has a tight-knit network of entrepreneurs, so support tools like these spread quickly," the restaurateur explains.
He first turned to state support measures about five years ago, after the pandemic. The company used both consulting services and financial products, including subsidized loans.
"We secured funding for different needs—some for working capital, some for renovations, equipment purchases, or investments in new projects. This has been invaluable during tough times. And it's especially relevant now, as many restaurants are struggling," Pavel notes.
Recently, he took out another subsidized loan to replenish working capital and update certain projects. According to him, such tools don't so much boost revenue as they help businesses weather difficult periods sustainably and grow without excessive debt.
Access to state support allows the holding to plan for further development—without aggressive expansion, but with a focus on improving the efficiency of existing projects. Future plans include strengthening key areas, addressing weak points, and launching new concepts. Among them are Stars Coffee outlets and the FARШ restaurant, set to open in partnership with Arkady Novikov with support from the Primorsky Krai Development Fund.
