BreadTalk Group expands in China, Indonesia

  1. BreadTalk Group is expanding through new joint ventures in China and Indonesia.

Using a wholly owned subsidiary, Shanghai BreadTalk Gourmet, the Singapore-listed food chain operator has formed a joint venture with Ge Ying to operate BreadTalk bakeries in Chongqing, China.

“This strategic partnership combines BreadTalk Group’s wealth of experience in managing and developing franchisee relationships with Ge Ying’s strong understanding of Chinese consumers’ preferences,” BreadTalk Group said in a statement.

Ge Ying has been managing the BreadTalk brand of bakeries in Tibet for the last six years. “With proven track records, the group is confident of his team’s capabilities to lead the growth plans for Chongqing, China.”

BreadTalk Group will hold a 30 per cent stake in the joint venture, which will potentially expand across southwestern China.

Tan Aik Peng, BreadTalk Group’s bakery division CEO said adopting a joint venture approach rather than a franchising agreement was in line with the group’s long-term direction of increasing directly owned outlets in Mainland China.

“Our strong product development and innovative brand promotion, coupled with Mr Ge Ying and his team’s proven track record in BreadTalk operational management and strong local knowledge will create a win-win situation for us in Chongqing. Looking ahead, it will serve as a good foundation for us to build a strong southwestern China base in Chongqing, enabling us the opportunity to penetrate further into other southwestern markets like Yunnan and Guiyang provinces.

“We are fully committed to the Chinese bakery market in which we have full confidence to meet the discerning tastes of the Chinese consumers,” concluded Peng.

Toast Box expands into Indonesia

Meanwhile, through its BreadTalk International subsidiary, the company has formed another joint venture in Indonesia.

It has a 70 per cent stake in BTG – Pura Indah Berkat Venture, with partner Pura Indah Berkat, which operates the Toast Box brand and chain of outlets in Indonesia.

The first Toast Box outlet is scheduled to open this year in central Jakarta. Currently, PIB manages a Toast Box outlet at Soekarno-Hatta International Airport Terminal 3.

In a statement announcing the venture, Peng described Indonesia as “a strategic and important market for the company” and that the Toast Box format is “highly relevant” to Indonesian consumers.

“We are confident that with our insights and experience from operating Toast Box in Singapore and other regions, our consumers will be able to enjoy our quality Nanyang coffee, toast products and local delicacies in Indonesia,” said Tan.

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