Arthur Fuentes

Luxury diners still want 'sulit': Why Ladurée is expanding in PH despite headwinds

Article (news)

Raine Musñgi

ABS-CBN News

MANILA — Slower economic growth, persistent inflation and cautious consumer spending have prompted many businesses to tighten their belts. French luxury bakery and tea house Ladurée Philippines is taking the opposite approach.After surpassing its first-year expectations, the company plans to expand its footprint in the country, betting that Filipino consumers will continue paying for memorable dining experiences, provided they still see value for money. &quot;We&#x27;re not just on track. I think we&#x27;re actually outperforming our targets,&quot; said Karan Gopwani, chief executive officer of Gastronova Hospitality Group, which operates Ladurée Philippines. He said the company will open two more stores this year, including Southeast Asia&#x27;s first Ladurée travel retail boutique at Ninoy Aquino International Airport and another branch at SM Megamall. The expansion comes as Philippine household spending has moderated amid elevated prices. The Philippine economy grew 2.3% in the second quarter of 2026, according to the Philippine Statistics Authority, marking one of the country&#x27;s slower quarterly growth rates in recent years.For Gopwani, however, difficult economic conditions present an opportunity to strengthen the business rather than retreat.<div><iframe width="640" height="360" src="https://www.youtube.com/embed/SnlQ8-aM960?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe> </div>&quot;We don&#x27;t really want to increase prices. So we are absorbing much of the pricing... We really maintained our margins because we want to keep the buying power,&quot; he said, adding that Ladurée has not raised prices since January despite rising costs. <div>Luxury meets &quot;sulit&quot;</div>The strategy reflects a distinctly Filipino consumer behavior.Rather than assuming affluent customers are immune to inflation, Gopwani said even luxury diners have become more discerning, looking for experiences that justify their spending.&quot;Filipinos are all about sulit. No matter where you go, whether it&#x27;s a very high-end restaurant or a low-end one, they want a sulit meal, bang for the buck. We want to make sure we get that,&quot; he said. That philosophy has shaped Ladurée&#x27;s evolution during its first year in Manila.While the Parisian brand remains globally known for its macarons, the Philippine operation has steadily expanded its all-day dining menu, allowing customers to visit not only for desserts but also for breakfast, lunch and dinner. According to Gopwani, savory dishes now contribute nearly half of the business.&quot;Actually, we&#x27;re almost at about 50-50,&quot; he said, referring to the revenue split between meals and macarons, underscoring why the company brought in French-trained chef Sau Del Rosario to lead its culinary direction. Del Rosario said today&#x27;s diners increasingly value experiences over products alone.&quot;Luxury is not really an extravagance,&quot; he said. &quot;Nowadays, people would spend more on the brand, but more so on the experience.&quot; He said many customers associate Ladurée with memories of Paris while also embracing dishes that incorporate premium Filipino ingredients into French cuisine.&quot;My role is really to honor the authenticity of the brand and bring it to the local palate by introducing world-class Filipino ingredients,&quot; Del Rosario said, citing ube, calamansi and coconut among the ingredients featured in the restaurant&#x27;s savory offerings. <div>Holding the line on prices</div>The expansion strategy has not been without challenges.Nearly all of Ladurée&#x27;s pastries, macarons and key ingredients are imported to preserve the brand&#x27;s global standards, leaving the business exposed to higher freight costs, currency movements and supply chain disruptions. Gopwani acknowledged inflation has squeezed margins across the hospitality industry.&quot;This is a big macroeconomic situation,&quot; he said. &quot;It touches everything. If it doesn&#x27;t hit you, it&#x27;ll hit your supplier. If it doesn&#x27;t hit your supplier, it&#x27;ll hit your supplier&#x27;s supplier.&quot; Yet instead of passing higher costs directly to customers, the company says it has chosen to absorb much of the pressure while continuing its expansion plans, arguing that maintaining affordability within the luxury segment is essential to sustaining demand.The company&#x27;s confidence comes at a time when many businesses are navigating softer consumer demand.The Philippine economy grew 2.3% in the second quarter of 2026, its weakest pace in five years, as household spending slowed and businesses pulled back on investments. Household consumption, traditionally the country&#x27;s biggest growth engine, expanded by just 2.8%, reflecting the impact of elevated inflation on purchasing power. Inflation has also remained a challenge for both businesses and consumers. While headline inflation eased to 6.2% in July from 6.4% in June, it remained above the government&#x27;s target range, keeping pressure on food, transport and operating costs. For Ladurée, those pressures are magnified because virtually every macaron, pastry and many of its premium ingredients are imported to meet the French brand&#x27;s exacting standards.&quot;We&#x27;re only the caretakers of the brand. We don&#x27;t own the brand. We want to make sure we represent them well,&quot; Gopwani said, explaining why products, ingredients and even retail carts are sourced overseas to comply with Ladurée&#x27;s global specifications. Even so, the company says demand has remained resilient.Since opening its flagship store in Bonifacio Global City last year, Ladurée Philippines has sold around 600,000 macarons, a figure Gopwani described as &quot;super significant&quot; for a premium-priced product. Rather than slowing expansion, the company plans to capitalize on what it sees as an underserved market for premium dining experiences.Aside from opening Southeast Asia&#x27;s first Ladurée airport boutique at NAIA and a café at SM Megamall later this year, Gastronova Hospitality Group is also planning additional Ladurée branches next year, while preparing to introduce new international restaurant concepts from Hong Kong and Italy into the Philippine market. Still, Gopwani said expansion will remain disciplined.&quot;We&#x27;re going to be aggressive, but structured,&quot; he said. &quot;We don&#x27;t want to have 20 stores. We don&#x27;t want to have 30 stores. We just want the right amount of stores to really not saturate the market too much.&quot; For Del Rosario, the opportunity extends beyond opening more locations.The veteran chef said Filipino diners are increasingly looking for restaurants that combine authenticity with local identity. Instead of reinventing Ladurée&#x27;s signature pastries, which remain under strict supervision from the brand&#x27;s Paris headquarters, his focus is on elevating the savory menu using Philippine ingredients such as ube, calamansi and coconut while preserving French culinary techniques.&quot;Food, after all, is borderless,&quot; Del Rosario said. &quot;Filipinos are very emotional. They like their food so much. They make every plate evoke a story and emotions.&quot; Whether that formula continues to resonate will become clearer over the next year as Ladurée rolls out new stores and dining concepts.For now, Gopwani believes Filipino consumers remain willing to spend, even in a slower economy, provided every peso translates into quality, service and memorable experiences.Luxury, he argued, is no longer defined by price alone. It must also deliver value.

The company plans to expand its footprint in the country, betting that Filipino consumers will continue paying for memorable dining experiences.

The company plans to expand its footprint in the country, betting that Filipino consumers will continue paying for memorable dining experiences.