Burma - Franchising Burma - Franchising
Overview
Myanmar’s quickly growing economy and increasing consumer activity is a welcoming market for international franchise brands. The market had little exposure to most foreign brands since the 1990s until recent market liberalization initiatives. Since then, the country has experienced an influx of international franchises, especially in the food and beverage sector from western and Asian countries.
Within the past six years, food and beverage franchise chains from Asian countries such as Singapore, Thailand, Malaysia, Indonesia, Philippines, Korea and Japan have made inroads in Myanmar. In March 2013, a well-known Thai conglomerate, Minor Food Group (MFG), opened Swensen's, an American food and ice cream brand in Myanmar. South Korean fast food restaurant giant, Lotteria, served customers at its first outlet in 2013. Lotteria has opened 24 outlets in Yangon, Mandalay, Mawlamyine and Monywa and aims to open additional outlets in near future. The Japanese operator of the Freshness Burger chain launched its first outlet in Yangon in 2014. The Malaysian fast food chain Marry Brown opened its first restaurant in June 2013 and opened 10 outlets in Yangon, Mandalay and Pyin Oo Lwin since then.
Thai MFG, which has the franchise rights in Myanmar for Burger King launched the first outlet in December 2016. Among ASEAN countries, Singapore has a strong interest in Myanmar’s franchise sector. Multiple F&B franchise chains from Singapore such as Ya Kun, Chewy Junior, Pasta Mania, Teapresso, Fish & Co, Manhattan Fish Market, Astons Specialities Steak House, BreadTalk, Craft Cafe, Crystal Jade, D'penyetz, Frolick, Ramen Monster, Singapore's Kitchen, The Coffee Bean & Tea Leaf and House of Singapura can be found in Myanmar. Myanmar Bakery (part of the country's conglomerate Shwe Taung Group) and BreadTalk of Singapore launched BreadTalk bakery’s first outlet in Myanmar on March 25, 2017. Shwe Taung has opened 3 outlets in Yangon as of June 2019. Moreover, Australia’s Gloria Jean’s Coffee has 7 outlets in Yangon and Mandalay and aims to open more in the coming years. Multiple F&B franchises from Thailand such as Black Canyon, Café Amazon, Doi Chaang Café, Fuji Japanese Restaurant, Ice Manias, Mr. Jones' Orphanage, Shabushi, The Pizza Company, True Coffee and Tummor also entered the market.
Other F&B franchises from Asian countries that have already made inroads to Myanmar are Ayam Penyet AP from Indonesia, Sorabol Korean, Twist Potato, Yogane and Bolgogi Brothers (Korean BBQ) from Korea, ChaTime and Gong Cha from Taiwan, Harley's, Hot & Roll and Ichiban The Izakaya from Malaysia and IPPUDO Ramen, Osaka Ohsho and Yamagoya Ramen from Japan.
In addition to the Asian franchise food chains, U.S. franchises have also successfully entered the country, starting in 2015. In July 2015, Kentucky Fried Chicken (KFC) opened its first outlet in downtown Yangon, in partnership with Yoma Strategic Holdings. KFC now has 34 outlets in Yangon, Mandalay and Naypyitaw. Pizza Hut opened its first restaurant in October 2015. They have opened up 8 outlets and intend to launch 20 additional outlets. In 2018, Krispy Kreme launched its first store and has since added four more outlets in Yangon. Based on their early success, they plan to launch additional outlets by 2020. KFC’s local operator Yoma Strategic Holdings opened up Auntie Anne’s first outlet in early 2019. In addition, Coffee Bean and Tea Leaf now has 5 outlets in Yangon.
There is no legal and regulatory framework for franchise and intellectual property (IP) in Myanmar. The draft IP laws are currently pending Parliamentary approval and are expected to be released at the end of 2018.
The Government of Myanmar has finally passed four long-anticipated IP bills: Copyright law; Trademark; Industrial Design; and Patent laws. These laws will only take effect once the Government of Myanmar issues a Presidential notification confirming the law implementations.
Leading Sub-Sectors
The key sectors with the best prospects for franchise opportunities in Myanmar are food & beverage, fine dining and quick service restaurants, coffee shops, retail stores, bookstores, ice cream parlors, vocational and executive level education, car hire and taxi services, retail and convenience stores, bars, health, and beauty and wellness.
Opportunities
Myanmar’s franchise sector started with a couple of local and international fast food franchise chains in 2013. By the end of 2018, the country has nearly 70 foreign franchises operating in Yangon, Mandalay, Taung Gyi and Naypyidaw. Strong GDP growth rates, large youth population, and expanding middle class are drivers of the prime market conditions for U.S. franchises. According to BMI Research’s Asia Country Risk team, the GDP per capita in Myanmar is expected to double between 2014 and 2019, from $1,480 to $3,052, fueling “rapid” growth in food and beverage sales. Rising disposable income and optimistic consumer sentiment will be key drivers in this growth, according to the research firm’s Food & Beverage Insights.
Contact Information
U.S. Commercial Service Myanmar
Ms. Ummay Aiman
Commercial Specialist
Email: Ummay.Aiman@trade.gov