Starbucks’s long-anticipated entry into the Myanmar market has been postponed once again. The coffee giant announced that it has extended its investment preparation period as it reconsiders opening its first cafes in the country.
Starbucks has been plotting a Myanmar entry since 2013, and in 2018, the company (operating under the name “Coffee Concept Myanmar Company”) was granted Myanmar Investment Commission approval to open 20 locations with a USD 6 million investment. But the fate of the enterprise has yet to be decided, said U Thant Sin, Director General of the Directorate of Investment and Company Administration. “They have extended their preparation period because they are weighing the decision to enter Myanmar. If they decide not to invest in Myanmar, they will be required to return the investment permit,” Myanmar Business Today quoted him as saying.
Several major food and beverage brands have courted Myanmar since the lifting of economic sanctions. Coca Cola and KFC were early success stories, quickly becoming staples in Yangon, Mandalay and Nay Pyi Taw. Pizza Hut and Krispy Kreme soon followed. In coffee and tea, Australian coffee chain Gloria Jeans has established itself in Yangon, along with Taiwanese bubble tea chain Tealand. However, recent alleged human rights abuses have caused many international brands to shy away from the country. Indeed, many analysts suspect Myanmar’s damaged reputation to be behind Starbucks’s hesitation. If the company does abandon its investment plans, it won’t be the first: Major companies such as insurer Samsung Life and London firm Bryan Cave Leighton have abandoned the Myanmar market, and this month London-listed Myanmar Investments International announced that it will follow suit.
Starbucks currently has more than 30,000 locations worldwide. China has the highest number outside the United States with 3600 stores, and Myanmar neighbor Thailand has 264 locations.
