Dunkin' Donuts moves into mainland China

By staff reporter

- Last updated on GMT

Related tags Dunkin' donuts

Only one year after moving into Taiwan, US bakery firm Dunkin'
Donuts plans to open 100 new shops in Shanghai and the surrounding
provinces over the next ten years, the company announced last week.

The bakery company, which posted net sales of $6.4bn at the end of 2006, has adopted an aggressive expansion policy in recent years, which has seen the firm accumulate over 7,900 shops in 31 countries.

Dunkin' Donuts is now looking to increase its presence in the Asia Pacific region, where it already has stores in Indonesia, South Korea, New Zealand and the Philippines.

The new stores in Shanghai will sell a mixture of US-style beverages and doughnuts, but will also cater for local tastes and serve some traditional, Chinese delicacies the company said.

"The shop will serve items customised to suit local taste preferences such as green tea and honeydew melon doughnuts, as well as mochi rings, which are similar to cake doughnuts but made with rice flour indigenous to the region," the group explained.

In Shanghai, the company has granted franchise rights to Mercuries and Associates, the same company that opened Dunkin' Donuts stores in Taiwan.

Like many food companies, Dunking Donuts is taking advantage of industry growth in China, currently booming at breathtaking speed.

According to a Deloitte & Touche study, the country is now the most popular area with manufacturers looking to expand operations.

From 446 executives questioned by the market consultants last year, 84 per cent said they planned to carry out 'significant expansion' in China over the next five years.

Over 59 per cent of respondents said they already had manufacturing facilities in the country, beating other emerging markets of Eastern Europe, Southeast Asia and Latin America - favoured by a third of those questioned.

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