KUALA LUMPUR: Berjaya Food Bhd (BFood) has earmarked around RM10 million in capital expenditure (capex) to open five more Paris Baguette outlets here.
Group chief executive officer Datuk Sydney Quays said BFood had planned for the five outlets to open in several major malls in the city centre, before expanding further to other cities nationwide.
"On average, an outlet like this (in Pavilion KL) cost us about RM2 million in capex so for the five outlets we have planned, the capex will be around RM10 million," he said during a press conference after the launch of the bakery cafe.
On why the chain's first Malaysian outlet was not launched in Berjaya Times Square, Quays said the company had discussed with its joint venture partner Paris Baguette Singapore PLC and found Pavilion KL to be a good place for the South Korean bakery to start its operations in the country.
"We have explored many malls and our goal is obvious which is to ensure the business grow big.
"We need to start somewhere and together with our partner from Paris Baguette Singapore, we decided that Pavilion is a good place to start before we venture to different malls within KL," said Quays.
Although the company hoped to open the five outlets this year, Quays noted the timeline was dependant on the environment and challenges that the company might face with the store openings.
Quays said the company had envisioned for Paris Baguette to grow as big as Starbucks Coffee, which is under its wholly-owned Berjaya Starbucks Coffee Company Sdn Bhd.
"We have a range of fantastic products and we see Malaysian consumers as those who are willing to treat themselves and spend.
"For us Paris Baguette is not a premium brand and we view it as affordable. Although our first outlet is in Pavilion KL, it does not mean you will not see us in smaller malls nationwide in the future," he added.
The Pavilion KL outlet marked the bakery's fifth market in the region, on top of its over 4,000 stores worldwide.
Paris Baguette was formed in 1945 and is a subsidiary of the SPC Group, a leading South Korean food and confectionary conglomerate.
Meanwhile, Domestic Trade and Cost of Living Minister Datuk Seri Salahuddin Ayub said the opening of Paris Baguette in Malaysia reflected the government's effort to revive businesses in the country.
"We will facilitate any applications from both local and international companies to operate their businesses in Malaysia.
"This showed that issues surrounding political stability is no longer an obstacle for international companies to start their business in our country," Salahuddin added.