Berjaya Food has signed a master franchise agreement with SPC Group to open Paris Baguette in Thailand, with the first location expected in the latter half of 2025. This expansion follows previous agreements for locations in Malaysia, the Philippines, and Brunei, and aims to make Thailand a central hub for the brand in Southeast Asia, amidst challenges faced by its Starbucks franchise.
Berjaya Food, a franchise group based in Kuala Lumpur, has announced its intention to expand the Paris Baguette brand into Thailand following the signing of a master franchise agreement with the SPC Group’s subsidiary, Paris Baguette Southeast Asia. The first bakery-café is projected to open in Thailand during the latter half of 2025, with both companies aiming to establish the country as a pivotal hub for the Paris Baguette chain across Southeast Asia. This new partnership builds on Berjaya Food’s existing collaboration with the SPC Group, which has seen the establishment of Paris Baguette outlets in Malaysia, the Philippines, and Brunei over the past two years. Since its debut in Malaysia in January 2023, Berjaya Food has successfully launched eight Paris Baguette locations. It has also initiated operations in the Philippines with two stores opened in April and September of 2024, and plans to open its first outlet in Brunei shortly. According to Dato’ Sydney Quays, CEO of Berjaya Food, “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.” Berjaya Food expressed its commitment to strengthening its presence in underrepresented markets as part of its strategic growth plan. This expansion into Thailand is particularly strategic as the company is facing challenges with declining sales at its Starbucks franchise in Malaysia, which operates 405 outlets. The Starbucks brand has encountered issues with consumer boycotts linked to the ongoing Israel-Gaza conflict, resulting in Berjaya Food’s temporary closure of 25 underperforming Starbucks locations. To mitigate these challenges, the franchise group is also pursuing international growth and has recently acquired licensing rights to operate Starbucks stores in Denmark, Finland, and Iceland. In addition to Paris Baguette and Starbucks, Berjaya Food operates the Kenny Rogers Roasters chain and licensed Krispy Kreme outlets throughout Malaysia. Founded in 1988, Paris Baguette serves as the flagship establishment of South Korea’s SPC Group, boasting approximately 3,750 locations domestically and over 500 international sites across eleven markets, primarily located in East Asia. Furthermore, SPC Group has established a separate agreement with Kolao Group to introduce Paris Baguette to Laos in 2025.
The article discusses Berjaya Food’s recent agreement to expand the Paris Baguette brand into Thailand as part of its broader growth strategy in Southeast Asia. This follows a series of successful openings in Malaysia, the Philippines, and the upcoming debut in Brunei. It highlights the significance of this expansion against the backdrop of sales declines experienced by Berjaya Food’s Starbucks franchise in Malaysia due to ongoing consumer boycotts related to geopolitical issues. The article further emphasizes the company’s commitment to establishing a stronger market presence in underserved regions, showcasing its broader strategy to enhance its international footprint.
Berjaya Food’s recent master franchise agreement to introduce Paris Baguette to Thailand marks a significant step in its strategy to enhance its presence in Southeast Asia amidst current sales challenges faced by its Starbucks operations. With plans to establish Thailand as a central hub for the Paris Baguette brand and a commitment to expanding into other regional markets, Berjaya Food is poised to leverage the growing demand for premium café experiences. The expansion underscores the company’s adaptability and strategic focus on international growth, particularly in response to shifting market dynamics.
Original Source: www.worldcoffeeportal.com
