Berjaya Food Expands Paris Baguette Franchise to Thailand in Strategic Move
Berjaya Food has signed a master franchise agreement with SPC Group’s Paris Baguette Southeast Asia to launch Paris Baguette in Thailand, with the first café expected in the latter half of 2025. This expansion follows successful licensing agreements in Malaysia, the Philippines, and plans for Brunei, aiming to address declining sales at Berjaya’s Starbucks locations and boost its international presence.
Berjaya Food, based in Kuala Lumpur, Malaysia, has formalized a master franchise agreement with SPC Group’s subsidiary, Paris Baguette Southeast Asia, to introduce the Paris Baguette brand in Thailand. Both corporations anticipate establishing Thailand as a strategic center for Paris Baguette’s operations in Southeast Asia, with the inaugural bakery-café anticipated to be operational in the latter half of 2025. This deal enhances the existing relationship between Berjaya Food and SPC Group, following recent licensing agreements in Malaysia, the Philippines, and Brunei over the past two years. Since debuting the Paris Baguette brand in Malaysia in January 2023, Berjaya Food has successfully launched eight outlets. The company also inaugurated the first two Paris Baguette locations in the Philippines during April and September of 2024, and a deal for Brunei was formalized in June 2024, with the first store set to launch imminently this quarter. Dato’ Sydney Quays, CEO of Berjaya Food, expressed optimism regarding the expansion, stating, “We are excited to extend Paris Baguette’s reach into Brunei and Thailand, two vibrant markets with growing demand for premium café experiences. This expansion is part of our long-term strategy to bring world-class dining concepts to the global stage.” He further emphasized that this agreement highlights Berjaya’s commitment to fortifying its presence in underserved markets. This strategic initiative aligns with Berjaya Food’s objective to mitigate declining sales observed at its Starbucks outlets in Malaysia, which have faced ongoing consumer boycotts impacting numerous western brands within the country. Berjaya Food reported challenges related to public perception concerning the United States coffee chain’s position on the Israel-Gaza conflict and has temporarily shuttered 25 underperforming locations in the latest quarter. As part of its broader strategy to enhance international sales, Berjaya Food also secured licensing rights to operate Starbucks stores in Denmark, Finland, and Iceland in August 2024. The firm manages a diverse portfolio, including the Kenny Rogers Roasters fast-food chain and various licensed Krispy Kreme outlets in Malaysia. Paris Baguette, founded in 1988 by SPC Group, is recognized as a flagship brand, boasting over 3,750 stores within South Korea and more than 500 outlets across 11 international markets, primarily located in East Asia. Additionally, SPC Group has entered into a separate master franchise agreement with Vientiane-based Kolao Group to establish Paris Baguette locations in Laos in 2025.
The expansion of the Paris Baguette brand into Thailand by Berjaya Food is indicative of the growing demand for premium café experiences in Southeast Asian markets. The strategic partnership not only reflects Berjaya’s ambition to widen its operational footprint in the region but also addresses recent challenges it faced with its Starbucks franchise due to socio-political factors affecting consumer sentiment. Moreover, Berjaya Food’s initiatives to explore new markets and concepts, such as the planned roll-out in Thailand and Brunei, suggest a proactive approach to diversifying its portfolio and enhancing brand visibility amid fluctuating sales.
Berjaya Food’s agreement to introduce Paris Baguette to Thailand marks a significant step in expanding its franchise operations in Southeast Asia. With expectations to open the first outlet by the latter half of 2025, the venture signals both companies’ commitment to tapping into growing markets. This move aims to offset declining sales impacts from ongoing consumer boycotts affecting the Starbucks brand in Malaysia, emphasizing a strategy focused on diverse dining experiences and international growth.
Original Source: www.worldcoffeeportal.com
