Paris Baguette enters Laos two years after signing franchise deal

Photo: Paris Baguette/SPC Group

The South Korean bakery-café chain has entered one of Southeast Asia’s least-developed branded coffee shop markets as parent company SPC Group pursues a long-term global expansion strategy

The new 360-sq m, 72-seat bakery-café is located at KokKok Mega Mall Patuxay in Vientiane. Its menu combines Paris Baguette staples, including Fresh Yoghurt Cream Cake, Best Ever Garlic Bread and Crunchy Choco Bun, with locally inspired products such as a Musang King Durian Roll Cake.

 It joins dozens of F&B operators at the site, including Australia’s The Coffee Club and South Korea’s Ediya Coffee.

Paris Baguette signed a master franchise agreement with Laotian conglomerate KOLAO Group in 2024. The company said the launch makes it the first Korean bakery brand to enter Laos and strengthens its network across Southeast Asia, where it now operates in seven countries: Singapore, Vietnam, Indonesia, Malaysia, the Philippines, Cambodia and Laos.

“By combining Paris Baguette’s accumulated global business experience with KOLAO Group’s local market expertise, we will pursue an optimised business model in Laos,” said Paris Baguette Vice Chairman Hur Jin-soo.

Jakkaphong Vongthaphanh, CEO of Grandview Property, a KOLAO Group affiliate and Paris Baguette’s local partner, said the store would offer Laotian consumers a new lifestyle space with global-standard products and service.

Laos remains a relatively untapped branded coffee shop market. World Coffee Portal data shows the country has fewer than 180 branded coffee shop outlets, with Thailand’s Café Amazon the market leader at 104 stores.

In comparison, local operator Joma Bakery Café has nine stores, while Thai operators Black Canyon Coffee & Eatery and Zurich Bread Factory and Café operate two outlets each.

World Coffee Portal forecasts Laos’s branded coffee shop market will exceed 222 outlets by 2030, representing a 7.9% compound annual growth rate.

The market’s limited branded presence and projected expansion offer Paris Baguette an opportunity to establish an early position in a sector supported by urbanisation, a growing middle class and rising interest in Korean culture, the company said.

Paris Baguette’s entry also extends SPC Group’s broader Southeast Asian growth strategy. The company completed a halal-certified production centre in Johor, Malaysia, last year, secured halal certification for all its Singapore stores in February and completed certification for all its Indonesian stores last month.

Including its Southeast Asian operations, Paris Baguette operates more than 730 stores across 13 countries, including the United States, Canada, France, the UK, China and Mongolia. SPC Group has previously outlined a longer-term goal of reaching 12,000 stores globally by 2030.

The Laos launch comes as bakery-cafés increasingly compete with coffee specialists by combining food, beverage and lifestyle experiences. For Paris Baguette, the challenge will be to translate its established bakery proposition into a market where the branded coffee sector is still small, while building awareness beyond its new Vientiane flagship.

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