Berjaya Food has signed a master franchise agreement with SPC Group to launch Paris Baguette in Thailand, with plans to open the first store in late 2025. This deal expands their partnership following similar agreements in Malaysia, the Philippines, and Brunei, as Berjaya seeks to boost sales in response to declining performance of its Starbucks franchise in Malaysia.
Berjaya Food, a franchise group based in Kuala Lumpur, has entered into a master franchise agreement with SPC Group’s subsidiary, Paris Baguette Southeast Asia, to introduce the Paris Baguette brand to Thailand. The anticipated opening of the first bakery-café is scheduled for the latter half of 2025. This partnership aims to establish Thailand as a crucial hub for the Paris Baguette brand within Southeast Asia. The agreement builds upon Berjaya Food’s previous licensing arrangements for Paris Baguette in Malaysia, the Philippines, and Brunei over the last two years. Since the brand’s inception in Malaysia in January 2023, Berjaya Food has successfully launched eight Paris Baguette locations and has also opened two stores in the Philippines in April and September 2024. Furthermore, a licensing agreement for Brunei was executed in June 2024, with the first store expected to open soon. Dato’ Sydney Quays, the Chief Executive Officer of Berjaya Food, expressed enthusiasm for the brand’s growth in Brunei and Thailand, emphasizing the demand for premium café experiences in these markets. Additionally, this expansion aligns with Berjaya’s strategy to enhance its presence in markets that are currently underserved. The agreement is particularly strategic as Berjaya Food aims to mitigate declining sales within its Starbucks franchise, which has faced backlash due to consumer boycotts and misperceptions related to the Israel-Gaza conflict. Consequently, the company temporarily shuttered 25 underperforming Starbucks locations in its latest financial quarter. In a bid to diversify and elevate international sales, Berjaya Food also acquired licensing rights to operate Starbucks outlets in Denmark, Finland, and Iceland as recently as August 2024. Besides operating the Paris Baguette and Starbucks brands, Berjaya Food is also responsible for the Kenny Rogers Roasters fast-food chain and licensed Krispy Kreme locations across Malaysia. The Paris Baguette chain, established in 1988 and owned by the South Korean food company SPC Group, boasts 3,750 stores in South Korea and over 500 outlets across 11 international locations, primarily in East Asia. Additionally, SPC Group has initiated a separate master franchise agreement with Kolao Group to launch Paris Baguette in Laos in 2025.
This article discusses Berjaya Food’s recent agreement with SPC Group to franchise the popular bakery-café, Paris Baguette, in Thailand. This strategic move seeks to expand the brand’s footprint in Southeast Asia following earlier ventures in Malaysia, the Philippines, and Brunei. The article illustrates Berjaya Food’s approach to international growth in response to challenges faced within its existing franchises, particularly its Starbucks stores, which have encountered significant obstacles in Malaysia due to political sensitivities and consumer sentiment. It highlights the brand’s historical context, current expansion goals, and the operational landscape of Paris Baguette.
In summary, Berjaya Food’s agreement to franchise Paris Baguette in Thailand marks a significant step in the company’s expansion strategy within Southeast Asia. By establishing Thailand as a critical hub for the brand, Berjaya Food aims to capitalize on the growing demand for premium café experiences. This initiative, however, also serves as a response to declining sales in its Starbucks operations, as the company seeks to navigate a challenging market environment and enhance its international presence. The success of this expansion will depend on effective market entry and consumer engagement in the region.
Original Source: www.worldcoffeeportal.com
