BreadTalk Group to buy Food Junction

1 min readUpdated Sep 2, 2019Sep 13, 201911:13 PM

Listed Singapore food-and-beverage company BreadTalk Group is to buy foodcourt operator Food Junction Management (FJM).

A subsidiary of BreadTalk, Topwin Investment, has signed a sale and purchase agreement to pay S$80 million for FJM, which operates 12 foodcourts in Singapore and three in Malaysia. A fourth is on track to open next year at The Mall in Johor Bahru.

BreadTalk Group sees synergies between the FJM business and its own foodcourt operations – it owns Food Republic and Food Opera-branded sites in Singapore, Greater China, Thailand, Cambodia and Malaysia. The combined operation could share support services and rationalise supply arrangements.

FJM is owned by Singapore investment company Auric Pacific Group Limited.

AdvertisementAdvertise with usMobile 320×100

What this means

BreadTalk Group's acquisition of Food Junction is a strategic market consolidation, using existing operational strengths. Unlike recent market entries such as PharmaResearch in Singapore, this move strengthens an established local player in a mature segment. This bolsters its competitive position against rivals, particularly given its existing Food Republic and Food Opera sites across Asia, similar to Skechers expanding its physical retail in Malaysia. The combined entity's expanded scale may pressure smaller, independent foodcourt operators, mirroring the impact of large retail openings. The primary risk lies in achieving the projected synergies across the newly integrated 19 foodcourts. We await the operational details of the fourth Food Junction opening at The Mall in Johor Bahru next year.

Sarah Chen

Reader pulse

Is this Food Junction acquisition a smart move?

24,176 votes so far

Is this Food Junction acquisition a smart move?

Asia's retail intelligence, in your inbox