Before February 2021, food and beverage franchise chains from Asian countries made significant inroads in Burma. In addition to those from Asia, U.S. franchises such as KFC, Bonchon Chicken, Pizza Hut, the Coffee Bean and Tea Leaf, and Krispy Kreme successfully entered the country and still operate with multiple outlets.
Since February 2021, some Asian and two American food and beverage franchise brands announced their exits from the Burmese market. Restrictions on foreign currency, import licenses, and logistical challenges due to the ongoing conflict add layers of complexity for businesses. The remaining foreign chains continue to operate and have adopted a wait-and-see approach, experiencing modest growth recently.
Leading Sub-sectors
The key sectors with good prospects for franchise opportunities in Burma are food and beverage, coffee shops, ice cream parlors, and vocational and executive-level education.
Opportunities
Burma’s franchise sector started with a couple of local and international fast-food franchise chains in 2013. By the end of 2020, the country had nearly 95 foreign franchises operating in Yangon, Mandalay, Taunggyi, and Naypyidaw. A large youth population in major cities such as Yangon and Mandalay has driven demand for international F&B franchises.
U.S. companies are advised to conduct proper due diligence on local franchisees and potential partners. The U.S. Commercial Service Office offers customized services that help U.S. businesses find reputable local business partners. These include Initial Market Check (IMC), International Partner Search (IPS), and Virtual Single Company Promotion (SCP) that help U.S. businesses find reputable local business partners.
Resources:
Contact Information
U.S. Commercial Service
U.S. Embassy, Burma
Email: Office.Burma@trade.gov