Berjaya Food has signed a master franchise agreement with SPC Group to launch Paris Baguette in Thailand, with the first store expected in the latter half of 2025. This agreement extends Berjaya’s existing collaboration with SPC Group, which includes successful openings in Malaysia, the Philippines, and Brunei. This strategic move aims to address declining sales in the Starbucks franchise amid consumer boycotts and position Thailand as a key market for premium café experiences in Southeast Asia.
Berjaya Food, a Malaysia-based franchise group, has entered into a master franchise agreement with SPC Group’s subsidiary, Paris Baguette Southeast Asia, to establish Paris Baguette outlets in Thailand. The inaugural bakery-café is slated to commence operations in the latter half of 2025. This partnership aims to position Thailand as a pivotal hub for the Paris Baguette brand within the Southeast Asian market. This agreement signifies the continuation of the collaboration between Berjaya Food and SPC Group, which commenced with licensing arrangements in Malaysia, the Philippines, and Brunei over the past two years. Since the brand’s introduction to Malaysia in January 2023, Berjaya Food has successfully opened eight Paris Baguette locations. There are also plans for two outlets in the Philippines, opened in April and September of 2024, and the first Brunei store is anticipated to launch shortly. Dato’ Sydney Quays, CEO of Berjaya Food, expressed enthusiasm about expanding Paris Baguette into Brunei and Thailand, emphasizing the growing demand for premium café experiences in these markets. He noted that this expansion is part of the company’s long-term vision to showcase global dining concepts on an international stage. Additionally, the strategic move is focused on enhancing Berjaya Food’s presence in markets that have previously been underserved, reflecting the company’s broader commitment to growth in Southeast Asia amid declining sales at its existing Starbucks franchise in Malaysia. Berjaya Food has faced significant challenges due to consumer boycotts linked to the Israel-Gaza conflict, leading to the temporary closure of 25 underperforming Starbucks locations. In pursuit of bolstering international sales, Berjaya Food acquired licensing rights to establish Starbucks stores in Denmark, Finland, and Iceland in August 2024. Berjaya Food’s operations encompass other notable brands, including the Kenny Rogers Roasters fast-food chain and Krispy Kreme locations in Malaysia. Founded in 1988, Paris Baguette operates as the flagship brand of the South Korean company SPC Group, boasting approximately 3,750 stores in South Korea and over 500 international outlets across 11 countries, primarily in East Asia. Furthermore, SPC Group is preparing to launch Paris Baguette in Laos in 2025, as part of its ongoing global expansion efforts.
Berjaya Food, an established franchise group based in Kuala Lumpur, has been expanding its portfolio in the Southeast Asian food and beverage market, particularly through its partnership with SPC Group’s Paris Baguette. This move reflects an increasing trend among franchise companies to seek new markets for expansion in light of recent operational challenges within their established locations. As consumer preferences shift and new market opportunities arise, franchises like Paris Baguette are capitalizing on the demand for premium café experiences in regions such as Thailand and Brunei. This expansion plan follows Berjaya Food’s prior collaborations with SPC Group, which have already been successfully implemented in Malaysia, the Philippines, and Brunei, leading to a strategic focus on capturing the growing café market in Southeast Asia.
In summary, Berjaya Food’s master franchise agreement with SPC Group to launch Paris Baguette in Thailand marks a significant step in the brand’s expansion across Southeast Asia. With the first store anticipated to open in late 2025, this move aims to establish Thailand as a central hub for the bakery-café chain while reflecting Berjaya Food’s commitment to penetrating underserved markets. The agreement is also part of a broader strategic response to declining sales from its Starbucks franchise, indicating a proactive approach to revitalizing the company’s market performance through international diversification.
Original Source: www.worldcoffeeportal.com
