Fine French pastries house Paul Lafayet keen to bake name for itself in Hong Kong and Greater Bay Area
- Hong Kong company, which has 13 shops in city and eight more in mainland China, plans to expand with about 35 more in development zone
- Growth of firm supported by government body InvestHK, which helps mainland Chinese and overseas businesses set up operations in Hong Kong
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It takes courage and commitment to set up a new business selling high-quality French pastries in a largely untested market. But the co-founders of family-led firm Paul Lafayet were fortunate in having one key advantage – good timing.
As they finalised plans and prepared to take their first steps, European-style cafe culture was starting to take off in Hong Kong. An increasingly cosmopolitan crowd was attracted by the chance to try new tastes and tempting bakery products in surroundings that offer a casual but urbane ambience.
That trend has continued steadily over the past few years, leading to the opening of many more neighbourhood cafes and coffee shops. These businesses are frequented by locals who make a regular visit part of their daily or weekly routine, and are recommended as a particular feature for tourists to look out for and enjoy.
Not surprisingly, such developments have also spurred the popularity and sales of French patisseries. That has enabled Paul Lafayet to establish a loyal and enthusiastic following, while also pushing ahead steadily with the next stages of an ambitious plan for growth.
The company was founded in 2010 by the Younes family, whose aim at the outset was to introduce authentic, quality products to the local market and target consumers looking for new experiences.
Its range of artisanal pastries and cakes – which includes favourites such as the bestselling crème brûlée and macarons, as well as chocolate craquelin delight cake – has certainly made its mark.
“At that time, fine patisserie in Hong Kong was limited to a few five-star hotels; most people can’t afford these places,” Toni Younes, founder and chief executive, says. “I saw a gap in the market and told myself to shift the business from five-star and make it more accessible to the public.”
With that in mind, another goal was to establish a chain of outlets to capitalise first on the opportunities in Hong Kong and, in due course, to move into mainland China which, the family could see, was also developing a cafe culture and a taste for fine French patisseries.
As a result, there are currently 13 Paul Lafayet stores in Hong Kong, located in popular shopping malls in various parts of the city, which all serve a wide cross-section of customers.
A further eight have opened in mainland China, with plans for about 35 more in the Greater Bay Area (GBA) – a development zone which includes Hong Kong, Macau, Shenzhen, Guangzhou and seven other Southern Chinese cities – as part of a programme of progressive expansion.
Christophe Younes, co-founder and business development manager, who is Toni’s son, says the company’s success depends on maintaining exacting quality standards and being closely involved in the day-to-day operations.
In building the brand, it has also meant emphasising exclusivity over mass production, while learning how best to balance demand in Hong Kong with the growing appetites elsewhere.
At present, the company has a central kitchen in Hong Kong. “This is a key advantage,” Toni Younes says. “It saves on the need to establish additional kitchens, while also ensuring quality control.”
The current headcount of about 70 staff – with roughly 36 based in the mainland – includes two highly experienced French chefs in Hong Kong. They are ready to share their know-how with colleagues, and their on-site presence guarantees the authenticity of the pastries and the standard required for newer items, such as lychee macarons, crafted specifically to appeal to the Asian palate.
Things have moved fast since the opening of the first store at K11 Art Mall in Tsim Sha Tsui in January 2010. For that, the company is grateful for the support of InvestHK – the government agency responsible for supporting mainland Chinese and overseas businesses that wish to set up, or expand their presence, in the city.
InvestHK, which works by helping to boost foreign direct investment, which is crucial in supporting new industries and spurring economic expansion, has been instrumental along the way in helping the company to establish solid relationships with various shopping malls and smoothing out any administrative concerns.
Having a strong base in Hong Kong has underpinned the company’s expansion and instilled a real sense of optimism about general prospects over the next few years.
The company’s plans have been supported by data compiled by online statistics provider Statista, which suggests that the market for bread and bakery products in Hong Kong will grow by about 4.6 per cent annually between this year and 2028.
“Hong Kong is an ideal market for luxury brands, as proven by the success of many of our French contemporaries,” Toni Younes says. “We are confident Paul Lafayet has what Chinese consumers look for, and our passion is to create sweet moments for them with French patisserie.”
