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SPC Group CEO Hur Jin-soo (right) and Berjaya Food CEO Sydney Lawrance Quays sign a master franchising agreement at a Paris Baguette store in Parkway Parade, Singapore, on Monday. (SPC Group) |
SPC Group's bakery brand Paris Baguette has signed contracts to enter the markets of Thailand, Brunei and Laos, aiming to strengthen its presence in Southeast Asia.
On Monday, Paris Baguette finalized a master franchising agreement with Berjaya Food, which has supported its expansion into Malaysia and the Philippines, to newly operate the bakery chain in Thailand and Brunei. As for Laos, a separate master franchising agreement was established with Kolao Group, a prominent local firm in the country.
When the agreements come to fruition, Paris Baguette will operate stores in nine Southeast Asian countries and a total of 14 countries worldwide.
Thailand stands out as one of the leading markets in Southeast Asia, characterized by a rapidly Westernizing food culture. The bakery sector has demonstrated an annual growth rate of nearly 10 percent, with over 140 global franchise brands entering the market, showcasing a well-developed franchise industry. Paris Baguette intends to position Thailand as a central hub in the Southeast Asian market.
While Brunei and Laos have smaller market sizes, there is a consistent increase in demand for high-end bakeries, according to SPC Group. Paris Baguette aims to promote a premium bakery cafe culture and influence local trends in the region.
The company plans to open its first stores in all three countries by 2025.
Meanwhile, its global halal certified bakery factory currently under construction in Malaysia's Johor Bahru is to commence full operations by the end of this year, as part of the group's strategy to bolster its presence in both the Southeast Asian and Middle Eastern markets.
“In line with Chairman Heo Young-in's global management vision, we are actively expanding our business in the Southeast Asian and Middle Eastern markets, alongside the US, China and Europe as key global growth pillars," said SPC Group CEO Hur Jin-soo. "We will continue to explore diverse global business strategies, including active investments and strengthening international partnerships, to grow alongside our small and medium enterprises in overseas markets.”
