Myanmar’s Yoma Group is bringing a local chain of noodle shops to Thailand this year, growing the conglomerate’s restaurant business even amid political turmoil in its home market.

Singapore-listed Yoma Strategic Holdings, the operator of KFC chicken restaurants in Myanmar, has opened the first Thai location of YKKO in a Bangkok mall. The chain offers a variety of noodle, broth and ingredient options for its signature kyay oh soup.  The menu also includes skewers and drinks as well.

The initial plan is to open two YKKO restaurants in Thailand, developing a menu that caters to local tastes. Yoma has set up an office to support franchising as well.

“We want to cater to a range of consumers in addition to Myanmar nationals living there,” a Yoma representative said.

With a core business of real estate, Yoma is unusual for a Myanmar conglomerate in that it has sought to distance itself from the military government and has listed a core company overseas. The company bought a 65% stake in YKKO’s operator in 2019, adding the brand to its restaurant portfolio.

The chain had 37 locations as of the end of June. As Myanmar’s worsening security situation and inflation drive up the cost of opening and running stores, YKKO has turned to a franchise model for more flexibility, with two franchises opening so far this year.

YKKO offers a variety of noodle and topping options for its signature kyay oh soup, along with drinks. (YKKO)

Yoma Strategic also is keeping up the pace with KFC, which it has operated in Myanmar since 2015. The company has 36 KFC locations in the country, pulling closer to the more than 40 restaurants for South Korean fast-food rival Lotteria.

A 20-year-old student said she recently switched from Lotteria to KFC. “KFC’s chicken is juicier,” she said.

Another customer said he prefers KFC’s chicken but “for burgers, Lotteria has more options — I never get tired of them.”

At KFC, two pieces of chicken, fries and a drink go for 11,100 kyat, or around $5 — a high price for a light meal for most people in Myanmar. The World Bank expects inflation in the country to clock in at 18% this fiscal year, and prices at KFC rise frequently.

“With the price of everything going up, I can’t complain,” a KFC customer said.

Food is one of the few markets seeing stable demand amid the economic turmoil since the February 2021 military takeover. Even with the cost hurdles, Yoma plans to open a total of two to four more YKKO and KFC restaurants by March.

Yoma Strategic’s food and beverage sales grew 30% to roughly $32 million in the fiscal year ended March 2024. The segment accounted for 14% of group revenue, behind real estate at 50% and mobile finance ad 24%.

Though the segment remained in the red, its net loss more than halved to $650,000.

A strong showing by YKKO and KFC marks the success of Yoma’s efforts to streamline its food and beverage operations. The group was the local partner for Chinese restaurant chain Little Sheep Hot Pot and U.S. pretzel chain Auntie Anne’s, but exited both businesses after the COVID-19 pandemic and Myanmar’s military takeover.

Myanmar’s growing controls over the property and financial sectors could pose a challenge for Yoma. There are also reports that founder Serge Pun is essentially under house arrest in Naypyitaw. Yoma Strategic on July 24 announced that Serge Pun was stepping down as chairman. His son, Melvyn Pun, now serves as both chairman and CEO.