Paris Baguette adds Thailand, Laos, Brunei to Southeast Asian market expansion

Paris Baguette CEO Hur Jin-soo, right, poses with Berjaya Food CEO Dato’ Sydney Quays after signing a master-franchise deal to operate the Korean bakery brand in Thailand and Brunei, at Paris Baguette’s Parkway Parade location in Singapore, Monday. Courtesy of SPC

SPC Group has broadened its overseas bakery market by entering Southeast Asia, securing master franchise (MF) agreements for its subsidiary, Paris Baguette, with local companies in Thailand, Laos, and Brunei, the Korean food conglomerate said Thursday.

In its course of aggressively enlarging its global market presence, the bakery franchise company has cemented a tighter foothold in Southeast Asia. The expansion also extends to the company’s plan to attract consumers in the grand halal market throughout the Middle East.

Paris Baguette on Monday inked an MF deal with Malaysia-based Berjaya Food for the local operation of its bakery shops in Thailand and Brunei. The bilateral partnership previously enabled the Korean company to launch operations in Malaysia and the Philippines.

On the same day, Paris Baguette signed another MF deal with Kolao Group for its Laos operation, with an agreement that new shops will soon open next year.

Paris Baguette CEO Hur Jin-soo met Berjaya CEO Dato’ Sydney Quays and Kolao’s representative Oh Joo-young at Paris Baguette’s Parkway Parade location, the company’s 21st and latest shop in Singapore.

Thailand, the biggest food market in the region, has been seeing a yearly market increase of 10 percent on average, SPC said. Some 140 global franchise companies are currently operating in the country, making it ideal for SPC to designate Thailand as a regional hub for global expansion, the Korean food company added.

Brunei and Laos, despite smaller local markets, are also seeing a consistent rise in demand for premium bakeries, according to SPC.

Prior to launching the new ventures, Paris Baguette plans to complete building a halal-certified bakery plant in the Malaysian city of Johor Bahru and start operating it within this year. The plant will supply not just the company’s Southeast Asian locations, but also its target market in the Middle East.

Quays said upon signing the contract that it would “extend Paris Baguette’s local market power throughout Southeast Asia using its experience in the successful launch of the Korean company in Malaysia and the Philippines.”

SPC, following its latest MF deals, has expanded Paris Baguette's overseas markets to 14 countries including nine in Southeast Asia.