K-bakeries racing to lure U.S. customers

On Monday, SPC Group opened its 100th Paris Baguette store in Monmouth County, New Jersey. [Image source: Paris Baguette]

Two of Korea’s leading bakeries are fiercely competing for market leadership in the U.S.

Paris Baguette, Korea’s largest bakery franchise run by SPC Group, has aggressively expanded its stores to reach a milestone of opening its 100th one, while rival brand Tous les Jours under CJ Foodville Co. is following closely with a robust operating profit. Tous les Jours has been in the black for the last five straight years.

On Monday, SPC Group said it opened its 100th Paris Baguette store in Monmouth County, New Jersey. The bakery chain’s U.S. unit operates a total of 120 stores in the U.S., including 20 stores under its direct management.

The bakery brand is scheduled to sign franchise agreements for an additional 160 stores this year and store locations will be diversified from the western base encompassing Los Angeles, San Diego and Silicon Valley and the eastern base for New York, New Jersey and Boston to southern North Carolina, midwestern Colorado, mid-northern Minnesota and Hawaii, according to SPC Group.

Tous les Jours is also catching up. The brand currently operates 86 stores and aims to open its 100th location in the first half of this year. The brand has been in the black for the last five years in a row since 2018 although it is inferior to Paris Baguette in terms of sales and number of stores, and the number of Tous les Jours franchise stores will be able to expand after CJ Foodville completes a planned bakery factory in the U.S.

Paris Baguette and Tous les Jours have the same goal of operating 1,000 stores by 2030.

The two K-brands are growing by word of mouth mainly from their franchisees. Korean bakeries in the U.S. attract customers with a Korean-style operating system that allows consumers to see and choose breads directly unlike other U.S. bakeries that usually sell fewer items.