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Published on October 26, 2007

The move is aimed at taking advantage of Thailand's growing coffee culture.

Managing director Nadim Xavier Salhani said Dunkin' Donuts celebrated its 26th Anniversary in Thailand yesterday by relaunching the first store it ever opened in the Kingdom, in Siam Square. The store has recently been renovated in accordance with the new emphasis on coffee and at a cost of about Bt7 million.

"We have refurbished our 120 Dunkin' Donuts outlets throughout the country over the past three years to match the new "coffee" concept, which is in line with the brand-refreshment strategy initiated by the company's headquarters in the US," Salhani said, adding that the wording of the Dunkin' Donuts brand logo had been changed from "donuts" to "coffee".

"The brand refreshment is in line with the company's strategic move to cater for the increasing coffee culture in Thailand. Coffee has becomes a part of the Thai lifestyle," Salhani said.

Dunkin' Donuts coffee will target middle-income customers who can afford coffee priced at between Bt45 and Bt55 a cup.

Salhani said the contribution of coffee to total sales in Dunkin' Donuts outlets in the US had reached almost 90 per cent, with only 10 per cent coming from donuts. In Thailand, sales of donuts account for more than 80 per cent of income.

"After the soft opening of the Siam Square outlet, we found the store's sales had increased 18 per cent. We're quite confident the concept will be well received and widely recognised by Thai consumers," Salhani said.

"We also plan to install a WiFi Internet service at the Siam Square outlet, to cater for the many 'new generation' people who bring their notebooks to the store."

Salhani said Golden Donuts would evaluate its cost structure after being recently burdened with an increased price for wheat flour, a major ingredient in donuts. The evaluation may force an increase in its donut prices, which have not risen for about two years.

The Nation