Starbucks’ Malaysian franchise partner anticipates further revenue growth and outlet expansion in 2023 despite increasing inflationary pressures
Berjaya Food opened seven new Starbucks stores in its first quarter 2023, two of which are drive-thru | Photo credit: Starbucks
Berjaya Food Bhd has credited increased like-for-like sales growth and the positive impact of Starbucks stores opened earlier this year as driving its strong first quarter results.
The company, which operates 363 Starbucks stores in Malaysia, said revenues rose 51% in the three months ended 30 September 2022 to reach RM283m ($61.6m).
Berjaya Food’s net profit for the first quarter reached RM34.7m ($7.5m).
The group anticipates its Starbucks business to maintain revenue growth momentum despite inflationary pressures on operating costs.
Berjaya Food opened seven new Starbucks stores in its first quarter 2023, two of which are drive-thru.
“Despite inflationary pressures, the group will continue to work on managing its operational costs effectively and sustaining its growth momentum for the rest of the financial year,” said Datuk Sydnery Quays. CEO, Berjaya Food.
In October 2022, Berjaya Food announced plans to open 40 new Starbucks stores across Malaysia by July 2023 as it seeks to reach 400 outlets in the country.
Barjaya Food’s full-year revenues in 2022 reached RM998m ($217m), with its Starbucks business contributing RM884m ($192m). This represented 41% year-on-year growth for the US coffee brand in Malaysia.
Berjaya Food also operates 68 outlets of the Kenny Rogers Roasters coffee chain in Malaysia and plans to launch nine new stores in 2023. The company added that the brand had achieved a notable ‘turnaround’ in the first quarter.