Berjaya Food has entered into a master franchise agreement with SPC Group’s Paris Baguette Southeast Asia to launch the bakery-café chain in Thailand, with plans for the first store by late 2025. This partnership marks an expansion into Southeast Asia following successful store openings in Malaysia, the Philippines, and Brunei. The agreement aims to meet increasing consumer demand and position Thailand as a key market for the brand. CEO Dato’ Sydney Quays indicated that this move reflects Berjaya’s long-term strategy to enhance its presence in emerging markets, amidst challenges faced by its Starbucks franchise due to external market pressures.
Berjaya Food, a franchise group located in Kuala Lumpur, has signed a master franchise agreement with SPC Group’s subsidiary, Paris Baguette Southeast Asia, to introduce the popular bakery-café chain to Thailand. This agreement aims to establish Thailand as a central hub for Paris Baguette in Southeast Asia, with the first store anticipated to open in the latter half of 2025. This partnership is a continuation of Berjaya’s collaboration with SPC Group, which has seen the chain expand into several other Southeast Asian markets, including Malaysia, the Philippines, and Brunei, over the past two years. Berjaya Food has successfully inaugurated eight Paris Baguette outlets in Malaysia following the brand’s launch in January 2023, as well as two stores in the Philippines earlier this year. Moreover, they have planned the introduction of the chain in Brunei, with the first outlet expected to open shortly. Dato’ Sydney Quays, the CEO of Berjaya Food, expressed enthusiasm about expanding Paris Baguette into Brunei and Thailand. He stated the significance of these markets, which are experiencing an increasing demand for premium café experiences, reflecting Berjaya’s strategy to introduce world-class dining options globally. Additionally, this move aligns with Berjaya’s commitment to enhancing its presence in regions with untapped market potential. Berjaya Food is strategically pivoting its focus, especially in light of falling sales within its Starbucks franchise in Malaysia due to public contention surrounding the US coffee chain’s stance on the geopolitical landscape. Consequently, they have pursued licensing rights for additional Starbucks locations in Denmark, Finland, and Iceland to bolster international sales. Beyond Paris Baguette, Berjaya Food operates other popular food franchises, including Kenny Rogers Roasters and licensed Krispy Kreme outlets in Malaysia. Founded in 1988, Paris Baguette has achieved notable success as a key brand under SPC Group, boasting approximately 3,750 stores in South Korea and over 500 outlets in 11 other markets, primarily within East Asia. Besides the developments in Thailand, SPC Group has also arranged to launch Paris Baguette in Laos in 2025, thereby furthering its footprint in the region.
Berjaya Food, known for its extensive portfolio of food franchises, has recently focused on international expansion as part of its business strategy. The signing of this agreement with SPC Group reflects a deliberate effort to grow the Paris Baguette brand within Southeast Asia. This immense bakery-café chain, which has a strong presence in South Korea and several international markets, is strategically expanding to meet the increasing consumer demand for premium dining experiences. The moves to enter Thailand and Brunei come at a critical time when Berjaya Food is addressing challenges associated with fluctuating performance and public perception of its Starbucks franchise amid ongoing consumer boycotts related to global political climates.
In conclusion, Berjaya Food’s master franchise agreement with Paris Baguette represents a significant step in enhancing the brand’s reach within Southeast Asia, particularly in Thailand and Brunei. This expansion not only responds to the growing demand for premium café experiences in vibrant markets but also aligns with Berjaya’s commitment to exploring underserved regions. As the company diversifies its offerings and mitigates risks associated with its Starbucks franchise, the sustained growth of Paris Baguette across multiple countries highlights the potential for successful international partnerships and market penetration.
Original Source: www.worldcoffeeportal.com
