Berjaya Food to Introduce Paris Baguette Franchise in Thailand by 2025

Berjaya Food, based in Kuala Lumpur, has signed a master franchise agreement with SPC Group’s Paris Baguette Southeast Asia to launch Paris Baguette in Thailand, with the first store anticipated in late 2025. The move aims to establish Thailand as a key hub for the brand in Southeast Asia. This expansion follows successful openings in Malaysia, the Philippines, and Brunei, amidst challenges faced by Berjaya Food’s Starbucks franchise due to consumer boycotts. Founded in 1988, Paris Baguette is a leading bakery-café chain with extensive international presence.

Berjaya Food, headquartered in Kuala Lumpur, has established a master franchise agreement with SPC Group’s subsidiary, Paris Baguette Southeast Asia, to introduce the well-known Paris Baguette brand in Thailand. The initial bakery-café is expected to commence operations in Thailand in the latter half of 2025, as both companies aim to position Thailand as a pivotal hub for Paris Baguette within Southeast Asia. This agreement signifies an expansion of Berjaya Food’s partnership with SPC Group, following prior licensing arrangements in Malaysia, the Philippines, and Brunei. Since the brand’s inception in Malaysia in January 2023, Berjaya Food has successfully launched eight outlets, as well as two locations in the Philippines, which opened in April and September 2024. Additionally, the arrangement for Brunei’s first Paris Baguette establishment was signed in June 2024 and is anticipated to open shortly. Dato’ Sydney Quays, the Chief Executive Officer of Berjaya Food, expressed enthusiasm about extending Paris Baguette into Brunei and Thailand, remarking on the vibrant markets’ appetite for high-quality café offerings. The expanded partnership underscores Berjaya Food’s commitment to strengthening its market presence in regions with inadequate premium dining options. This initiative also serves as a strategic maneuver for Berjaya Food, particularly in light of declining revenues at its extensive Starbucks franchise in Malaysia, which has been adversely affected by ongoing consumer boycotts and criticisms regarding Western brands amid geopolitical tensions. Berjaya Food has experienced challenges in addressing consumer perceptions concerning the Starbucks brand amidst the Israel-Gaza conflict, resulting in the temporary closure of 25 underperforming stores in its latest quarterly report. In conjunction with the Paris Baguette expansion, Berjaya Food has recently acquired licensing rights to operate Starbucks outlets in Denmark, Finland, and Iceland as part of its international sales enhancement strategy. Besides Paris Baguette and Starbucks, Berjaya Food oversees the operations of Kenny Rogers Roasters and Krispy Kreme franchises in Malaysia. Paris Baguette, launched in 1988, represents the flagship brand of SPC Group, a prominent South Korean food enterprise. The bakery-café chain boasts an impressive network of 3,750 establishments domestically and over 500 sites internationally, predominantly across East Asia. Furthermore, SPC Group is set to launch Paris Baguette in Laos in 2025 under a separate master franchise agreement with Kolao Group.

The agreement between Berjaya Food and SPC Group indicates a strategic collaboration aimed at expanding the Paris Baguette brand into Southeast Asia, with a particular focus on Thailand. This development takes place in the broader context of Berjaya Food’s efforts to diversify its brand portfolio and amplify its presence in international markets, especially in response to recent challenges faced by its Starbucks franchise. As consumer preferences shift and demand for premium dining experiences rises in the region, Berjaya Food’s expansion into Thailand signals its commitment to capturing a share of this market.

In conclusion, Berjaya Food’s master franchise agreement with SPC Group to establish Paris Baguette in Thailand represents a significant milestone in its expansion strategy within Southeast Asia. The planned opening of the initial store in 2025 reflects both companies’ confidence in the burgeoning market for premium café experiences, while also serving as a strategic response to current challenges faced by Berjaya Food’s Starbucks operation. This initiative to enhance the brand’s footprint is indicative of a proactive approach to navigating changing consumer landscapes and regional market dynamics.

Original Source: www.worldcoffeeportal.com