The Korean family behind the Paris Baguette chain loses billions taking their Asian flavoured buns and croissants to the world
- The owners of SPC Group, the company behind the brand with 6,000 global locations, is based in South Korea
- SPC Group’s chairman Hur Young-in and his family – worth about US$3.6 billion five years ago – are left with some US$770 million, according to the Bloomberg Billionaires Index
Its stores are dotted around Manhattan, Singapore and Shanghai with blue neon signs that virtually scream France: The words Paris Baguette, separated by an Eiffel Tower logo.
Yet the family behind the chain is South Korean – and it’s bet a large chunk of its fortune that the rest of the world will warm to its baked goods, often featuring a subtle twist for Asian palates, such as buns stuffed with red-bean filling and pastries that fuse hot dogs.
In the past few years, SPC Group has expanded to 6,000 locations globally, even planting its flag in Paris. So far, it has proved a pricey bet.
Chairman Hur Young-in and his family – worth about US$3.6 billion five years ago – are left with some US$770 million, according to the Bloomberg Billionaires Index. SPC Group’s net income has slumped 77 per cent since a high in 2016, partly because of the losses from overseas investments it’s betting on. Domestically, it has also taken a hit as shares of its SPC Samlip, focused more on local consumers, have slid 84 per cent from a high in 2015.
This shouldn’t be too much of a concern in the short term, says Han Yu-jung, an analyst at Daishin Securities.