BreadTalk to enter Myanmar market with new franchise deal

It inked the agreement with Myanmar Bakery Co.

BreadTalk has set its sights on capturing Myanmar’s palate, as the group inked a franchise deal with Myanmar Bakery Co., a member of the Shwe Taung Group.

According to a report by OCBC, the partnership allows BreadTalk to leverage on the Myanmar conglomerate Shwe Taung Group’s network and real estate footprint in Myanmar, which includes the Junction Centre group of shopping centres.

“Due to the group’s expansion plans, we have been seeing some usual drags on earnings from gestation and depreciation,” notes OCBC.

“We believe management will continue to look out for and collaborate with quality franchisees, especially as this allows the expansion of their presence without incurring heavy upfront costs,” OCBC further asserts.

The first BreadTalk outlet is slated to open in Yangon by early 2017, in one of Shwe Taung Group’s shopping centres.