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Presentation for RAS Seminar
* For those without number of outlets mentioned, stands at 1
Ya Kun Coffee & Toast:
• Iconic Singaporean Brand serving coffee & tea since 1944
• 6 Cafés serving and 3 more to open in 2017• MFFT owns the Master Franchise for Myanmar
Titu’s Indian Bistro
• Our in-house concept serving Indian cuisine from Roti Prata to Tandoori dishes
• 3 Outlets Serving and at least 2 more to open in 2017
The Food Street
• Our latest addition; this is slated to open by May/June 2017.
• Will be a 10 stall Food Street
Our Portfolio
House Of Singapura
• Our own concept serving Singaporean dishes (JV with Les Amis Group, Singapore)
Peperoni Pizzeria
• Singaporean chain of mid-segment Pizzeria (JV with Les Amis Group, Singapore)
* For those without number of outlets mentioned, stands at 1
Our JV Projects
Casa Mia Italian Kitchen & Bar
• High End Italian restaurant located at SuleShangrila Hotel. Soft opened in Nov 2016. Won ‘Best Italian Restaurant’ in Myanmar (Myanmore Awards 2017)
2011:
• Came to Yangon to scout the market in the Telco Industry.
• F&B Industry at nascent stage
• 5million population with a huge influx of tourists and business travellers
• Hardly any cafés in Yangon, mostly Tea Shops or High End restaurants and Hotel Cafes ( very cheap and very expensive respectively)
2012:
• Ya Kun Master Franchise for Myanmar signed
• Opened 1st Café at FMI ( Next to Scott market)
2013:
• Launched 2 restaurants Peperoni Pizzeria and House of Singapura, UBC Complex, Nat Mauk Road
2014:
• Launched Titu’s Indian restaurant, Downtown
2016:
• Rebranded Titu’s Indian Bistro, Myanmar Plaza
• Launched Casa Mia Italian@ Sule Shangrila
Milestones
0
5
10
15
20
25
30
2015 2016 2017 2018
46
912
2
3
6
11
1
2
2
1
1
1
2
1
2
Outlet Opening Projection
Yakun Titu's Casa Mia Peperoni Foodstreet
2015 2016 2017 2018
Total Number of Outlets 7 11 19 29
Footprint in Myanmar
FMI Center
Hledan Center
Myanmar CenterJunction Square
Yangon Airport
Ocean SuperCenter
( Mandalay )
• Currently 5 Stores in Yangon and 1 in Mandalay• 3 stores in the pipeline for 2017
Ya Kun Cafes Myanmar
• Lower level- House of Singapura (All day dining Singapore coffee house)
• Upper Level- Peperoni Pizzeria (Award winning wood fired pizzas - voted Yangon's best
pizza in 2015!)
Peperoni Pizzeria & House Of Singapura
• Total population of 51million; with 20% in 2
major cities, namely Yangon (12%) and
Mandalay (7%)
• Yangon being the Commercial Capital while
Mandalay is the gateway to China, hence a
bigger proportion of ethnic Chinese
• Napydaw is the Capital with a population of
1million
• With a population of over 5.5million, Yangon
is the 1st Stop for most of the International
business setting up in Myanmar
• With its increasing Air&Sea connectivity, it is
the natural choice for commercial activities
Snapshot of Myanmar
F&B Industry has evolved since 2012 with rapid entrance of large
International and Regional players ( KFC, Lotteria, Marrybrown,etc)
Pre-Opening:
Construction Segment:-
• ID / Contractors / M&E Specialists / Equipments
• Accessories / Construction Materials amongst others…..
Location:
• Shortage of good spaces hence rents are high for the attractive
sites! Including demands for Yearly Rentals UPFRONT
Human Resource:
• Still at nascent stage; looking for skilled staff still a challenge
Demographics:
• Check out the immediate vicinity and surroundings
Post Opening (Operations):
Supply Chain:
• Still a costly affair as only a handful around; huge room for
improvement and growth
Weather Patterns & Seasonality:
• Rainy season/ Dry Seasons : products vary with seasonality
Training of Staff:
• This needs to be done regularly as they are resistant to learning
new ways of doing things! So have to keep drilling it in to them
on following SOPs/ Systems
Food Consistency:
• This is challenging with 1 Outlet; let alone over multiple outlets!
Can be a nightmare!
Challenges & Opportunities in the Marketplace
The biggest challenge is OPERATIONS!
• There is no such thing as clockwork
• No number of SOPs/ Systems can overcome
the Operational challenges; the OLD fashioned human bodies need to be
present to manage it!
• Hence having a trusted operator or a dedicated team to manage the day to day activities is crucial…
Challenges & Opportunities in the Marketplace
Besides the big names; one needs to work on a
coherent strategy to gain traction in the market
• Foods: Many foods relatively new to the
people here so need to be aware of what they
like or dislike
• Pricing Strategy: Need to understand the
pricing in the market ( what is the sweet spot)
• Infrastructure Challenges: NO
MOTORBIKES ALLOWED IN YANGON;
traffic jams, parking issues, lack of
connectivity amongst others; needs to be
thought through before selecting the space
• Advertising & Marketing: Social Media
seems to be medium of choice due to the
explosive growth of mobile phones usage in
Myanmar
Go To Market Strategies…..
After 5 years of Operations; our Key learnings:-
• Trans border logistics is expensive; hence localisation is key to keep the foodcosts under control. We have reduced our imports to approx 10% from 70% when we started.
• Due to the non existence of a comprehensive Supply Chain; we have build our OWN supply chain for food ingredients.
• Staff Turnover is high due to lack of skilled workers; we have identified “keepers” and these people are incentivised on a different matrix
• Food Consistency over multiple outlets is a REAL challenge; we are setting up a Central Kitchen
• Foodcosts at outlets can vary drastically due to wastages and “misappropriations”; we have set up systems and control measures to monitor on a weekly basis
• With a slew of new openings; constant Marketing is a mainstay; we have an In House Marketing Team that manages all our Brands
• Opening of outlets is crucial due to logistic challenges for people to reach you; however need to be mindful of rentals and local demographics
Key Learnings……
DON’T
• USE SINGAPORE FORECASTS TO DO PROJECTIONS FOR MYANMAR!!!
• Singapore Pricing for products and services should not be used
• Be aggressive with Payback and ROI• Commit on the first few spaces you see• Assume that what does well in Singapore will do
well here!• Target a niche market; better to cast the net
wide as the market is small to begin with and the higher you go..Exponentially smaller!
AND THEN…...BE PATIENT….IT WILL PAY OFF
In order to succeed in Myanmar
In Summary
• Myanmar is a vibrant country with a huge potential in the F&B segment ( may it be supply chain, equipment sales,etc..)
• Yangon is definitely the starting point • Focus on the largest diaspora of the population• Understand the taste preference and pricing structure in the market• Carefully select your locations as merits are in both malls as well as
standalone• Be conservative on your projections• Operations is KEY to success; hence more emphasis required in this
segment• Be Patient once you have done the ABOVE…..
In Summary