Berjaya Food has exited the Paris Baguette franchise in Malaysia, closing out roughly RM24 million in sunk costs and settling a question that has hung over the group for two years, according to Inside Retail Asia.
The decision follows a period of underperformance for the South Korean bakery chain under Berjaya's management, with the company ultimately deciding to cut its losses rather than continue investing in a struggling operation. The exit serves as a reminder that even well-known international brands can fail to gain traction in local markets if the franchise model is not properly aligned with consumer preferences or operational capabilities.
Industry observers note that the Paris Baguette exit underscores the importance of franchise triage—the ability to identify underperforming assets early and make swift divestment decisions. For Berjaya Food, the RM24 million write-down is a costly but decisive move that frees up resources for more promising ventures, offering a case study in the discipline required to manage a multi-brand franchise portfolio.