Selangor-based Berjaya Food Bhd forecasts the US coffee chain will maintain steady revenue and outlet growth through the fourth quarter as it approaches 400 Starbucks stores across Malaysia
A Starbucks store at KSL Esplanade Mall, Malaysia | Photo credit: Starbucks Malaysia
Berjaya Food Bhd (BFood) has credited strong outlet and same-store-sales growth for its licensed Starbucks business in Malaysia as boosting third quarter group sales growth.
The Selangor-based quick-service restaurant operator, which currently operates 379 Starbucks stores across the Southeast Asian country, reported group revenues rising 8% to RM 265.8m ($57.8m) in the three months ended 31 March 2023.
However, the group saw pre-tax profits fall 45% to RM 25.4m ($5.5m) compared with RM 46.3m ($10m) in the corresponding quarter of 2022, which BFood attributed to higher operating costs driven by rising inflation.
US coffee giant Starbucks opened its first store in Malaysia in partnership with BFood in Kuala Lumpur in December 1998.
In October 2022, BFood announced plans to open 40 new Starbucks outlets and reach 400 stores across Malaysia by July 2023. Having opened 23 net new stores since the announcement, the franchise group said it will open a further 40-45 new Starbucks stores over its next financial year.
“The board of directors expects BStarbucks to maintain its revenue growth momentum and anticipates that the operating results of the group will remain satisfactory for the remaining quarter of financial year ending 30 June 2023, despite facing inflationary pressures on its operating costs,” BFood said in a filing with Bursa Malaysia.
Berjaya Food’s full-year 2022 revenues reached RM 998m ($217m), with its Starbucks business contributing RM 884m ($192m).
The foodservice group also operates the Kenny Rogers Roasters coffee chain, sushi restaurant chain Jollibean, ice cream parlour Kelava and vegan restaurant business Sala.
In June 2022, the conglomerate announced a joint venture to bring South Korea's Paris Baguette to Malaysia and launched the bakery café chain’s first outlet in Kuala Lumpur in January 2023.