Dive Brief:

• Paris Baguette plans to open 40 new locations by the end of the year, bringing its unit count to nearly 150 cafes across the U.S., according to a press release.
• The company, which currently operates in 14 states, aims to accelerate growth in 2023, projecting 96 new openings for the year.
• Paris Baguette hopes to reach 1,000 U.S. stores by 2030 — a goal driven by strong sales gains. In 2022, the brand posted year-over-year system-wide sales growth of 42% and comp sales increases of 31%.

Dive Insight:

Paris Baguette’s aggressive expansion could lift its sales and unit count above rival concepts in the U.S. market. Corner Bakery, Pret A Manger, La Madeleine and Great Harvest Bakery Café are key competitors, but none boast more than 200 units. The sales difference between those four concepts and Paris Baguette is also less than $100 million.

Paris Baguette has seen consistent growth since 2021, signing 121 new franchise agreements, launching a new loyalty app and continuing a brand redesign. The bakery cafe segment is experiencing year-over-year growth, as well. Overall, revenue in the U.S. bakery cafe category grew by about 3.6% in 2021 and is expected to continue growing through 2026, according to IBIS World.

Mark Mele, Paris Baguette’s chief development officer, recently told Chain Store Age that the company is focused on suburban markets in lifestyle centers and urban markets in the top 25 U.S. and Canadian markets. The bakery cafe, which was founded in South Korea in 1988, operates 3,600 units in that market, and 240 locations in China.