The Malaysian restaurant group is forecasting a return to revenue growth for its licensed Starbucks business in Malaysia as Paris Baguette stores continue to perform strongly
Berjaya Food currently operates more than 400 Starbucks stores across Malaysia and Brunei | Photo credit: Starbucks
Selangor-based Berjaya Food expects Starbucks and Paris Baguette brands to post strong full-year results despite a fall in first quarter group sales and profit.
The restaurant group, which operates 400 Starbucks stores and four Paris Baguette outlets across Malaysia and Brunei, posted a 1.5% year-on-year group sales decline during the three months ended 30 September 2023 to RM 278.5m ($59.6m).
Berjaya Food attributed the fall to lower sales at its 75-store Kenny Rogers Roasters restaurant chain in Malaysia, with inflationary pressures leading to 43% year-on-year fall in group profits to RM 28.3m ($6m).
However, Berjaya Food expects all of its foodservice brands to ‘remain on track’ across the next nine months and generate positive full-year results, led by Starbucks – its largest brand by sales and outlets. Starbucks outlet growth in the quarter had driven quarter-on-quarter revenue growth, Berjaya Food added.
“Berjaya Starbucks is expected to return to its revenue growth momentum once the challenging market conditions brought about by the recent conflict in the Middle East are back to normality,” Berjaya Food said in its financial report.
Berjaya Food said its Paris Baguette outlets, all based in Kuala Lumpur, ‘continue to perform at a better-than-expected level’ with further outlet expansion in the pipeline.
In August, Berjaya Food expanded its franchise agreement with Paris Baguette to bring the brand to the Philippines.
CEO Dato’ Sydney Quays said Berjaya Food will invest approximately $1.5m in an initial five-store roll-out in the country over the next 12 months.