Restaurants in Kudat
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Roughly opposite the KFC, Restoran Prosperous is a Chinese place that attracts a good group of locals both wealthy and otherwise. You can get a nice char siu pau (steamed bun filled with barbecue pork) and a cup of tea here in the morning for around RM3.
About halfway along the Sedco Shopping Complex, the Rakyat is a 24-hour Muslim café that serves good rotis and curries.