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Alex Nikitin: From Russia with Love

Sep 11, 2024

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Alex Nikitin: From Russia with Love

Russian immigrant and college dropout becomes multi-unit franchisee success story.

  • Name: Alex Nikitin
  • Title: Managing Partner
  • Company: CTG Partners FL, LLC
  • No. of units by brand:  100, all Cilantro Taco Grill
  • Age:  41
  • Years in franchising: 15
  • Years in current position: 15

The first 20 years of Alex Nikitin’s did not follow the conventional path to the modern American business success story.

Born in Izhevsk during the final years of the Soviet Union in the 1980’s, Nikitin grew up at a time in which the country became fascinated with American culture, whether it was music, clothing, or food. He fondly recalls going to the opening of the first McDonald’s restaurant in Moscow and waiting four hours to be served due to the massive turnout. His indoctrination to the English language came through reading words in a dictionary and playing Metallica and Red Hot Chili Peppers songs when he was in a teenage band.

Nikitin also picked up English by playing video games and spending hours on the computer. He graduated high school with a software engineering degree and was accepted in an exchange program at St. John’s University in New York. After initially living in Connecticut, the transition to both a new country and big-city life was a bit of a culture shock, but one he came to embrace.

“I was young and optimistic,” says Nikitin. “I fell in love with the city. I was always learning and adapting to a new culture. Americans came off as very easy going, having lots of fun, smiling, and joking. It was very different from what I experienced in Russia. So was the weather. It was so cold back home and sometimes we’d only have three hours of daylight in winter.”

After only a few years in the United States, Nikitin took a big risk that would alter the rest of his life. He decided to drop out of college with only $200 to his name with the goal of starting his own business.

“I called my dad and told him I quit and he said ‘are you crazy?’,” recalls Nikitin. “He told me to come home and complete my education in Russia, or he would cut my credit cards. Instead, I crashed on friends’ couches in Jamaica, Queens and worked as a bar tender and server to save and earn money.”

After six months, he started his first telecommunications business, which worked with phone companies to provide emergency cellular service immediately following a hurricane or major storm. His first employee was a Ukrainian man he heard talking Russian in a Walmart and asked if he wanted a job. He survived the recession and saved money by rooming with several friends. Nikitin then decided to purchase struggling companies and turn them around, making them profitable in 3-6 months.

Today, Nikitin operates more than two dozen retail and food franchises. His latest venture is with Cilantro Taco Grill, a Chicago-based Mexican fast-casual chain. He and his partner, Max Dreev, recently signed a 100-unit franchise agreement to bring the concept to Florida.

 

PERSONAL

First job: Counselor at a summer camp in Connecticut when I was 19.

Formative influences/events: When I was about 10 years old, I would borrow my dad’s business magazines and secretly read them. A whole new world opened up when I first read about the stock market, companies, boards of directors, investment strategies, M&A, etc.

This led me to the realization that I wanted to be an entrepreneur, to be in business.

Key Accomplishments: I dropped out of college at the age of 21 to start my first business. It felt as though if I didn’t do it at that time that I would have to work for a large company, sitting in a cubicle each day. This was not the life I wanted. America is the land of opportunity, so I thought “the time is now” to take the maximum risk. At the time, I was in New York and the only money I had was $200 in cash. This marked the beginning of my adult life. I started my first business about six months later and made my first million dollars by the age of 25.

Biggest Current Challenge: My ongoing focus is on personal growth and self-mastery. Overcoming fears, desires, and ignorance are key areas for development. I recognize that by conquering these internal obstacles, I can become truly unstoppable.

Next Big Goal: My next big goal is to build the best franchise organization within the Cilantro Taco Grill system. I am excited about this opportunity, as the team behind CTG is world class, and I see great potential to learn from them on both a business and human level.

First Turning Point in Your Career: A significant turning point in my career was meeting Dan Rowe of Fransmart. His mentorship and friendship have been instrumental in my personal, spiritual, and professional growth.

Best Business Decision: One of the best business decisions I made was quitting college. Despite the risk involved, I always put in maximum effort and surrounded myself with talented people. When I commit to a project, I am fully dedicated and involved, ensuring that I give it my all.

Hardest Lesson Learned: One of the hardest lessons I’ve learned is accepting that I don’t know everything, and that it’s okay. Acknowledging what I don’t know and being open to learning has been crucial in my personal and professional growth.

Work week: My work week is typically very busy. For maximum productivity, I focus on doing one thing at a time and plan ahead to ensure that I am completely focused on the task at hand. This helps me maintain efficiency and tackle tasks effectively.

Exercise/workout: My exercise routine includes weight training at the gym four days a week and surfing twice a week. I also devote 10 hours a week to meditation for mental clarity and relaxation. This combination of activities helps me stay physically fit, mentally focused, and balanced.

Best advice you ever got: Nothing is impossible.

Passion in Business: My passion in business revolves around being of service to others and making a positive impact on the community. I firmly believe that business provides a powerful platform to create change and make a lasting impression on the world. By focusing on being useful and contributing to the betterment of society, I find purpose and fulfillment in my entrepreneurial endeavors.

Balancing Life and Work: For me, there isn’t a clear line separating life and work because I am deeply passionate about what I do. It is an essential part of who I am. Being in business is a fundamental aspect of my identity, providing me with a deeper understanding of myself and enhancing my personal life. This integration of work and life allows me to thrive and feel fulfilled, making everyday tasks feel natural and purposeful.

Guilty pleasure: Surfing

Favorite book: The Art of War by Sun Tzu. I read a lot, everything from quantum mechanics to architecture, biology, history, economics, industrial design, political science, technology, philosophy, fashion, art, and culture. I love biographies.

Favorite movie: “Apocalypse Now”, the original “Blade Runner”, and “Glengarry Glen Ross”.

What do most people not know about you? In my early teens, I had a knack for rebuilding computer hardware, hacking networks, and modifying video games to play them for free. This not only fueled my curiosity but also honed my skills in computer systems and problem-solving.

It was a formative period that instilled in me a deep appreciation for technology and its potential for creativity and innovation.

Pet peeve: When people are afraid to do things. I don’t like when they take the safe and less productive way to do something.

What did you want to be when you grew up? Initially, like many young boys, I dreamed of becoming either a military officer or a policeman. However, as I grew older, my career aspirations shifted towards wanting to become a businessman. This desire reflected my growing interest in entrepreneurship, innovation, and the world of business. This journey of self-discovery ultimately guided me towards pursuing a path that aligned with my passion for commerce and leadership.

Last vacation: We were in Puerto Rico for a week with the family (in Feb. 2024). That was the most relaxing week in probably a few years.

Person you’d most like to have lunch with: Israeli author Yuval Noah Harari

 

MANAGEMENT

Business philosophy: All decisions should be data driven. Proper planning and execution saves money, time, and effort. Fail fast, analyze, iterate, try again.

Management method or style: Bad news should be given loudly and often, good news quietly and once. Never ask your team to do something you’re not willing to do. Urgency is our operating principle.

Greatest challenge: Any limits I set upon myself. Michael Jordan was once asked who was his top competition, and he said himself. We need to be able to face our internal fears and struggles. When you can overcome that you are unstoppable.

How others describe me: People say I move fast, am driven, and organized, making me easy to work with. On the flip side, I have been told I can push too hard at times.

Have you ever been in a mentor-mentee relationship? What did you learn? I am a member of the Young Presidents’ Organization (YPO), and there have been many people who have helped and supported me. I enjoy learning and being around people who are smarter than me. I love giving people something I know in exchange for what they know.

One thing I’m looking to do better: I am constantly striving for growth and learning, recognizing there’s always room for improvement.

How you give your team room to innovate and experiment: I find the best people for the job and allow a significant amount of freedom to innovate and collaborate.

How closely are you involved in operations? I am present and available as needed. However, I build self-sufficient teams of highly skilled professionals who can autonomously execute a larger strategy.

What are the two most important things you rely on from your franchisor? I rely on their operational expertise and practical knowledge. Acquiring these skills can take time.

What you need from vendors: Reliability and proactive communication. After that, we can figure out everything else.

Have you changed your marketing strategy in response to the economy? How? Definitely. We have seen a big shift in the last couple of years. Marketing is about telling stories and how people respond to it. Things are totally different after Covid. In our industry, we try to create scarcity marketing.

How is social media affecting your business? Social media is the main channel for us. It is a way to have direct and instant communication with your consumers. We can make data-driven decisions based on interaction with consumers. It is a game changer.

How do you approach hiring and firing? I believe in hiring people who demonstrate excellence, trustworthiness, and drive. When it comes to firing, I believe in making decisions swiftly when it becomes clear that it’s not a good fit.

How do you train and retain? I provide comprehensive training, tools, and support to help employees succeed. Those who excel are promoted quickly to retain top talent.

How do you deal with problem employees? Easy. My philosophy is simple – I want people to achieve excellence, are trustworthy and possess drive. You either go up (through promotions, etc.) or you go out. We make decisions really fast.

Fastest way into your doghouse: If they don’t possess those qualities of excellence, trustworthiness, and drive.

 

BOTTOM LINE

2024 Goals: Develop the team and infrastructure to support rapid expansion. Establish at least one new Cilantro Taco Grill unit.

Growth meter: How do you measure your growth? Through financial metrics by tracking revenue, profitability, cash flow, and other financial indicators. We also look at community impact by assessing our performance in serving and benefiting the community through qualitative and quantitative measures.

 

Vision meter: Where do you want to be in five years? 10 years?

In five years, I’m planning to have sold or opened 50 Cilantro Taco Grill units across Florida. In 10 years, I hope to increase that number to 100 units.

Do you have brands in different segments? Why/why not? My franchise brands are in food and restaurants but I have several businesses in other sectors.

How is the economy in your region(s) affecting you, your employees, your customers?

Yes, Florida is experiencing economic growth due to factors such as population growth, a strong economy, and increased business activity. However, the rising cost of living is a challenge that needs to be effectively managed to ensure sustainable growth and prosperity for all residents.

How do changes in the economy affect the way you do business? It has forced us to become more efficient in how we operate. Things like the supply chain and employee wages continue to be a factor. As a result, we need to use technology more and outsource mundane jobs.

How do you forecast your business? I expect it to grow year-over-year by about 10 percent. We run financial projections on a monthly and quarterly basis and conduct performance reviews. I live in Florida and see lot of growth firsthand.

What are the best sources for capital expansion? It depends on the risk profile. If it is something that is high-risk, we do it ourselves. For something that is moderate risk, we use venture capital. It is a mix of options.

Experience with private equity, local banks, national banks, other institutions? Why/why not? Private equity and local banks. Local banks are risk adverse, and that is why I don’t have too many relationships with them. I think it is important to be on the same page with your investors.

What are you doing to take care of your employees? We offer benefits to our staff and pay well above market. We also quickly promote people when it is deserved. We offer equity to those who earn it. These are people who are on the ground each day and they need to be kept aboard and rewarded. We also offer performance-based compensation.

How are you handling rising employee costs (payroll, minimum wage, healthcare, etc.)?

We pay great salaries to attract and retain the best people. We never try to cut corners on team compensation. I want all my teammates to have the opportunity to become millionaires one day.

What laws and regulations are affecting your business, and how are you dealing with them? It depends on the sector. The liquor business is a highly regulated industry. It is not as much for restaurants, but we try be updated on everything.

How do you reward/recognize top-performing employees? In addition to compensation, we try to recognize their accomplishments publicly. We celebrate birthdays and work anniversaries through our company chat.

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