KUALA LUMPUR: Berjaya Food Bhd (BFood) will invest up to RM300 million in the next three years to expand its food business, according to its chief executive officer Sydney Quays.
Quays told the New Straits Times that the expansion would help BFood’s revenue growth in the short term.
He said most of the investment would go toward expanding the company’s Starbucks operation nationwide.
BFood is the only listed food and beverage (F&B) company on the local bourse, with Berjaya Corp Bhd (BCorp) owning an indirect 53.19 per cent stake.
Berjaya Starbucks Coffee Co Sdn Bhd (BStarbucks) is BFood’s wholly-owned subsidiary with the most extensive stores among the group’s F&B network.
According to Quays, there are currently 341 Starbucks locations across the country, including 62 drive-thru concept stores and 14 Starbucks Reserve Stores.
BFood also has four Starbucks locations in Brunei.
He said the plan was to open an average of 25 Starbucks locations in Malaysia each year.
“We want to be more visible in strategic and prime locations, as well as in smaller towns. We noticed that our outlets in most small towns, such as Batu Pahat and Muar, performed exceptionally well during the pandemic. Our current focus is on smaller towns.”
Quays said in addition to the expansion, BStarbucks would continue to introduce innovative F&B offerings that reflect the tastes and expectations of Starbucks’ customers as a premium coffee company.
BFood also operates Kenny Rogers Roasters (KRR) outlets, Joy Bean, Sala (a vegan restaurant), and Jollibean (34 stores in Singapore), all of which are expanding, said Quays.
There are currently 70 KKR outlets in operation, and plans are in the pipeline ito open an average of five outlets every year.
“We slowed our expansion this year due to the Covid-19 pandemic, but once more economic sectors opened in October, we began to open more outlets aggressively.
“We have invested RM60 million this year alone to open 22 Starbucks locations, KKR restaurants and Jollibeans,” he said.
Tropicana Gardens Reserve (March 2021), which houses Malaysia’s largest Starbucks Reserve store, and Eco Majestic (May 2021), which hosts Malaysia’s second Starbucks Reserve drive-through store, were among the new store openings.
“We continue to see growth as a significant opportunity for our company. Our entire food business has done exceptionally well in the last 20 months, particularly our drive-thru locations, and we are expanding in this area.
“Within the next three years, we hope to more than double the number of drive-thru Starbucks concept stores from the current 62,” Quays said.
He said Berjaya Krispy Kreme Doughnuts, a subsidiary of BCorp, was also expanding.
Krispy Kreme currently has 36 locations, with a goal of expanding to 60 in the next three years. According to Quays, BCorp was expected to invest about RM10 million to open an average of five outlets per year.
“We’ve seen Krispy Kreme grow tremendously. It’s a global brand, and I believe this business has enormous potential in the future,” he said.
Its first store was launched in April 2009 in Berjaya Times Square here.
Source: New Straits Times
