Home grown brand The BreadTalk Group has tied up with Minor Food Group (‘MFG’), a business unit under Minor International (‘MINT’) in Thailand to create a 50-50 joint venture company called BTM Thailand. (Read also: BreadTalk outlines growth plans)
This marks the first collaboration between BreadTalk and MFG since MFG’s 11% investment in BreadTalk Group in Singapore in 2013. BreadTalk Group’s total investment amount is SGD 3.96 million for the 50% stake in BTM Thailand.
With the combination of BreadTalk’s strong brand recognition and MFG’s knowledge of the Thai market, BTM Thailand expects to see vast growth potential over the next few years with new outlet expansions, initially with the company-owned business model and later with franchised model, said a statement from BreadTalk.
The contract is subjected to customary conditions precedent; and the joint venture is expected to be established by 30 September.
The BreadTalk Group first entered Thailand in 2005. Today, it has 23 company-owned bakery outlets under the brands of BreadTalk and Toast Box as well as two franchised Din Tai Fung outlets and three self-operated Food Republic food atria. While the BreadTalk Group will support BTM Thailand as brand owner and provide technical know-how, BTM Thailand will leverage on MFG’s established platform in Thailand, such as supply chain management, legal, franchising, outlet expansion and property management.
George Quek Meng Tong, chairman of BreadTalk Group said, “With MFG as our strategic partner, we will be able to accelerate BreadTalk’s store growth in Thailand. The partnership will enhance operational excellence and further extend our brand presence with MFG’s strong F&B expertise and local network.”
Paul Kenny, CEO of MFG, added,“ We look forward to working with BreadTalk to successfully grow the operation in Thailand, a market in which we are confident that immense growth potential exists for the bakery business.”
Founded in 2000, the BreadTalk Group is listed on the Singapore Exchange and compromises of brands such as BreadTalk®, Toast Box, Food Republic, Din Tai Fung , The Icing Room, Bread Society, RamenPlay, Thye Moh Chan and Carl’s Jr. in China. It now has a global staff strength of 7,000 employees and a network of over 800 outlets in 16 territories.