The growing consumer class of Myanmar has become an attractive developing market for international fast food chains after its emergence from economic isolation. Popularity of these global fast food chains in Myanmar, especially in Yangon is steadily rising. They are seen everywhere, appearing in downtown areas, shopping centers and business compounds. Local media dub the recent development of various global fast food chains as “Fast Food Invasion”. The number of fast food chains has greatly increased in Myanmar over the past few years as a result of the nation’s growing income levels and the changing appetites and eating habits among the middle-class population. Increasing per capita income, combined with a large market and ongoing economic reform, emergence of a middle class is attracting global fast food chains into the country.
In July 2015, the World Bank reclassified Myanmar as a lower-middle income country, while previously it was a low-income nation. People have earned more money in recent years. According to UN and the World Bank, per capita income almost doubled from an average income of $800 per year to $1200 between 2010 and 2014. These changes are driving local and foreign business to look at Myanmar as a significant market in its own right, not just as an export-oriented economy.
Globalization and easy access to Internet allows Myanmar people to feel the global popularity of those food chains. Especially youngsters who admire western style and are enthusiastic to learn the advanced western technologies and lifestyle. People who have tried those global fast foods in other countries also wish to taste them at their home country anytime. Thus it greatly stimulated their curiosity when the global fast food chains made announcements to establish business in Myanmar.
The US-based fast food chain KFC started its very first outlet in Yangon, Myanmar in July 2015. It is the first US fast food chain in Myanmar and the popularity of this global brand amazed the whole city when locals lined up in front of the outlet in downtown Yangon to become the first ones to taste it on the first day of opening. Before this US brand’s entry, Asian franchises such as Lotteria and BBQ from South Korea, Marrybrown from Malaysia already set up their shops. But with the immense popularity around the world, KFC managed to attract more locals than other fast food chains on its first day. Following KFC, another US-based fast food chain Pizza Hut makes it way to Myanmar. It is also welcomed with a great number of locals dropped by to enjoy their meal on the opening day.
Meanwhile the global fast-food chains are entering the local market one after another, the local fast-food businesses are also keeping their loyal customers by upgrading their services, quality and availability of their menus. At the same time, the global brands are also trying to balance their menus with local’s taste. Even when they had set up test kitchens and carried out researches to adjust their original menus to local taste and culture, they still have to compete with traditional restaurants and roadside eateries.
As mentioned above, Myanmar is a lower-middle income country so roadside eateries are very popular in terms of providing local taste with cheap price and time saving. Although street stalls offer an amazing variety of local delicacies, which are amazingly cheap, food hygiene level of these eateries is rather low. So people who care about food hygiene go to restaurants and spend a little bit more than they would at street vendors. However, most young people and a number of educated people choose global fast food outlets as they see them as prestigious due to products, atmosphere, attitude and strict hygiene standards. Therefore while street stalls, local restaurants and international foods chains have their different customer bases, the competition can become intense when local street stalls and restaurants upgrade their culinary, tools and service and when international fast food chains rework their menus to suit the local taste and culture.
At present, modifications the international fast food chains make to their culinary are subtle. Many consumers in Myanmar prefer spicy taste so food chains add more spiciness and also try to avoid certain meats like beef and pork in the menus. However one obvious change of the global brands’ menus is adding rice to consume together with their chickens. It is a tradition for Myanmar people to enjoy rice as main food so adding rice to the menus attracts a number of new customers who are interested to try the food items of those transnationals. On the other hand, local eateries are making changes to their products and services to compete with global chains. Famous local chain Feel for instance offers a wide variety of over 200 dishes for customers to enjoy traditional cuisine. Local businesses have advantages when it comes tothe price and local touch. While the demand for global fast foods are rising, local eateries focus more to bring out the uniqueness of local foods to not lose their existing customers and also potential customers who crave for local cuisine as prestigious. Both local and international food chains have their advantages and to prepare for the increasing competition, locals can focus on the improvement of their products and services and also bring out the unique taste of local flavor. As for global chains, adding more dishes with local touch and maintaining their international standard would bring in more and more customers in the future. Nevertheless, the one who meets customer needs and servescustomers better will ultimately emerges as the winner.
