Tag: Paris Baguette

Starbucks Malaysia Suffers Record Annual Losses as Boycotts Persist

Posted on by Qahwa World

Kuala Lumpur – August 28, 2025 (Qahwa World) – Starbucks’ Malaysia operator, Berjaya Food Berhad, has announced the heaviest losses in its history as customer boycotts linked to the Israel–Gaza conflict continued to weigh on sales and consumer sentiment. The group reported a net loss of RM 292 million ($69 million) for the year ending 30 June 2025, more than triple the losses of the previous year. Fourth-quarter results also reflected the downturn, with losses exceeding RM 185 million ($44 million), the worst quarterly outcome since the company was listed on Bursa Malaysia in 2011.

Revenues were similarly affected, dropping 36% year-on-year to RM 476.77 million ($113 million), while fourth-quarter sales fell 10% to RM 115.9 million ($27.5 million). Berjaya cited the prolonged boycotts as the main reason behind the decline, noting that the shift in consumer behavior has significantly impacted Starbucks and other US-based foodservice brands operating in Malaysia. The group was also compelled to scale back its Starbucks network, reducing its outlets from 408 to 320 stores over the past year, while making impairment provisions on assets due to the downsizing.

The financial damage reflects a wider backlash in Malaysia against American brands, with chains such as McDonald’s, Burger King, and KFC also facing boycotts. The trend has reshaped spending patterns in the majority-Muslim country, where consumer sentiment toward US companies has been severely weakened.

Globally, Starbucks is grappling with similar pressures, recording weaker results in several key markets. The brand has faced revenue declines in Europe and the Middle East alongside falling like-for-like sales across its 17,200 US outlets. Franchise partners have also been hit, with Alsea in Europe reporting five consecutive quarters of falling sales, while Kuwait-based Alshaya Group abandoned plans to sell a minority stake in its Starbucks franchise business earlier this year.

Despite the downturn, Berjaya is moving to diversify and expand. Beyond Starbucks, the group operates Paris Baguette, Kenny Rogers Roasters, and Krispy Kreme in Malaysia, and has been widening its international footprint with new Starbucks licenses in Denmark, Finland, and Iceland, where it opened its first store in July 2025. Berjaya is also looking to grow its Paris Baguette operations, with franchise agreements in place to bring the bakery-café chain to Thailand, Brunei, and the UAE.

Paris Baguette Marks 250th Café with New Opening in Frederick, Maryland

Posted on by Qahwa World

Moonachie, N.J., August 21, 2025 (Qahwa World) – Paris Baguette has reached an important milestone in its expansion, celebrating the opening of its 250th bakery café in North America. The brand, which continues to grow across the United States and Canada, views this moment as part of its mission to revive the neighborhood café experience by offering expertly crafted pastries, quality coffee, and warm, welcoming spaces for communities.

Chief Executive Officer Darren Tipton said the achievement reflects the dedication of franchise owners, café teams, and loyal guests. He noted that each new opening represents more than growth for the company, highlighting its goal of creating places that foster joy and connection.

The new café in Frederick, Maryland, located at 520 Snowshill Street, is operated by Waseem Mohamad, who previously served as a general contractor building nearly 20 Paris Baguette locations. Together with his partners Prant Kumar and Prince Kumar, Mohamad is now taking on his first ownership role. Their family ties to the area and familiarity with the brand provide them with strong insight into the local community, and they intend to open additional cafés in the region in the future.

For Mohamad, the occasion carries personal significance. Having witnessed other milestone openings for the company, including the 150th and 200th cafés, he now celebrates the 250th as his own. He explained that his long-time love of the brand’s products, shared by his family, makes this step especially rewarding as he introduces the café to his community.

The company’s growth is supported by strong customer loyalty and consistent performance. Paris Baguette recently surpassed one million members in its PB Rewards program and reported eighteen consecutive quarters of positive same-store sales growth, along with seventeen quarters of rising guest traffic. In 2025 alone, forty-six cafés have opened, with over 170 new franchise agreements signed and fifty more cafés set to launch by the end of the year. Nearly 450 additional locations are in development, positioning the company to double its North American presence within two years and reach 1,000 cafés by 2030.

Future expansion is planned in several U.S. states, including Massachusetts, Florida, Illinois, and Ohio, as well as Canadian markets such as Quebec, Vancouver, and Toronto. With each opening, Paris Baguette underscores its commitment to hospitality, craftsmanship, and community connection, aiming to reestablish the bakery café as a central part of neighborhood life across North America.

Born from a love of bread and a passion for quality, Paris Baguette was founded in 1988 as a fast-casual bakery-café specializing in French and Asian-inspired goods. In addition to cakes, pastries, sandwiches, salads, and signature coffee and tea, the company delivers a unique bakery and café experience to thousands of customers daily. Today, with over 4,000 locations worldwide, Paris Baguette continues to satisfy the tastes of people across all ages and backgrounds. The brand invites those with a passion for food, service, and community to become part of its story, offering opportunities to join a diverse and talented team driven by fun, collaboration, and success.