Paris Baguette Opens Its First Overseas Joint Venture Store in Cambodia
– Opens its first store in Phnom Penh’s Boeung Keng Kang, the largest commercial district, jointly with its local partner HSC Group
– Sixth overseas market for Paris Baguette… to accelerate overseas store opening through joint ventures
– SE Asia is the third global growth pillar after the U.S. and China
SPC Group announced on June 9 that it has opened Paris Baguette Cambodia’s first store in Boeung Keng Kang, Phnom Penh, the capital of Cambodia, jointly with the local partner HSC Group.
Cambodia is Paris Baguette’s sixth overseas market and is the first location opened a store in a joint venture since the start of its global business.
Paris Baguette, which has increased its brand awareness and competitiveness by directly entering major global markets such as the United States, France, China, and Singapore, now plans to diversify its strategy through joint ventures and master franchises, starting with Cambodia, and thereby accelerates the expansion of the number of overseas locations.
Paris Baguette’s entry to Cambodia is a signal that it would expand ambitiously towards the Southeast Asian market where SPC Group is fostering as the third global growth pillar following the United States and China. With Singapore as the hub of Southeast Asia, the company is implementing a strategy to expand its entry into neighboring countries by operating flagship stores of Paris Baguette and Shake Shack.
An official of SPC Group said, “We are actively expanding our business in Southeast Asia, including meeting with the Malaysian chief minister who recently visited Korea to discuss establishing a local Halal-certified production plant and reviewing entry into Indonesia, the largest market in Southeast Asia. We are even contemplating moving into the Middle East market.”
The Paris Baguette Boeung Keng Kang store is located in the busiest commercial district of Phnom Penh in a 390-square-meter, three-story standalone building.
As this is the first store for Paris Baguette in Cambodia, the company put a great effort to convey its brand concept from the design stage of the building. The first and second floors, where an open kitchen and 70 seats are located, are mezzanine (middle floor) with the structure maximized for the sense of space and a cozy atmosphere like a greenhouse in a European garden by designing the all-glass walls. On the third floor, there are a rest area for employees and an office.
Paris Baguette is planning to implement a localization strategy, such as applying the concept of a bakery cafe where customers can take a break and strengthening the brunch menu that goes well with European-style pastries, taking into account the young consumers who are familiar with Cambodia’s family-oriented and cafe culture. In addition, to protect employees and customers visiting the store and from the spread of COVID-19, the store is regularly disinfecting and beefing up its to-go and delivery services.
Sok Chen, general manager in charge of local operation in Cambodia, said, “I am very glad to introduce the global brand Paris Baguette to Cambodia. We will make our best effort to grow Paris Baguette into one of the best brands in Cambodia based on its excellent products and brand image.”
SPC Group is currently operating a total of 430 global stores in six countries including China, the United States, France, Vietnam, Singapore, and Cambodia, and is actively expanding business in Southeast Asia using Singapore as its forward base.
* Note: Joint venture
A joint venture is a form in which the franchise headquarters (SPC Group) and a local partner (HSC Group) jointly invest capital to establish a local company.
.
In November 2019, Paris Baguette Singapore established H.SPC, a joint venture to operate Paris Baguette in Cambodia together with HSC Food & Beverages, a subsidiary of HSC Group in Cambodia.
HSC Food & Beverages has accumulated experience in the food & beverage and retail industry by operating Burger King, Crystal Jade under LVMH (LVMH Moët Hennessy Louis Vuitton), and DFS, a duty-free shop in Cambodia, with a high degree of reliability and industry influence in the region.
