KUALA LUMPUR: Berjaya Food Berhad (BFood), which continues to face challenges with its Malaysian Starbucks franchise, is expanding its food and beverage (F&B) business by introducing the South Korean bakery café, Paris Baguette, to Brunei.
The group's subsidiary, Berjaya Food International Sdn Bhd (BFI), has signed a Letter of Intent (LOI) with Paris Baguette Singapore to establish the first Paris Baguette outlet in Brunei by the fourth quarter of 2024.
According to the LOI, BFI and its local Brunei partner will collaborate with Paris Baguette to establish a strong brand presence in Brunei, aiming to open up to five outlets within the next decade.
Datuk Sydney Quays, BFood's group chief executive officer, emphasised BFI's extensive experience in the international F&B industry and the significant potential for Paris Baguette in the Brunei market, backed by strong local support.
Quays noted that the announcement of their local partner would be made soon.
"To be given the rights to operate Paris Baguette in Brunei is a major milestone in our APAC region expansion. BFood looks forward to bringing world-class culinary experiences to many more countries across the globe, with the goal of becoming an internationally recognised and diverse F&B group.
"Building on our successful expansions in Malaysia and the Philippines, we are confident about replicating this success in Brunei," said Quays.
He added that this initiative leverages BFood's extensive experience and the local partner's market insights, catering to the growing demand for premium bakery products in Brunei.
Paris Baguette, with over 3,400 stores in South Korea, offers a wide range of pastries, breads, and cakes.
BFood, controlled by Berjaya Group founder Tan Sri Vincent Tan currently operates over 400 Starbucks stores and five Paris Baguette outlets in Malaysia.
For the first nine-month period of the year (9MFY2024), BFood posted a net loss of RM53.31 million versus a net profit of RM86.13 million in the previous corresponding period because of an ongoing boycott of its franchised coffee chain Starbucks Malaysia over the current Middle East conflict.
Revenue fell 28.96 per cent to RM599.74 million from RM844.22 million over the same period.
The group halted store expansion during the quarter across its brand portfolio, which includes the Kenny Rogers Roasters fast-food chain and Jollibean, a fresh soy milk operator acquired in 2012.
Following its stock exchange filing, BFood attributed its widening losses to 'consumer perceptions' about Starbucks and the current sentiment regarding the conflict.
However, BFood's directors anticipate a gradual improvement in operating performance in the fourth quarter.