Doi Chaang to add 100 outlets

Doi Chaang to add 100 outlets

After gaining a strong foothold in the local market, Doi Chaang Coffee House Co will speed up expansion by opening 100 new outlets this year and having a presence in all Asean countries over the next five years.

Staff at a Doi Chaang coffee shop make a cup of coffee. Doi Chaang is eyeing domestic and regional expansion this year.

Jarern Wuiyue, the company's general manager, said that about 100 new Doi Chaang coffee houses will be opened this year on a franchise basis to cash in on the increasing demand for premium coffee.

The new branches will bring the total number of Doi Chaang outlets to 400 by the end of this year.

"Our business continues to grow by word of mouth without any advertising and promotional support because of the quality of our product. We are the only coffee brand that makes our own coffee from plantation to cup," Mr Jarern said.

The company has about 30,000 coffee growers under contract in Doi Chaang, Chiang Rai, which is able to produce up to 4,000 tonnes of beans per year.

The company believes that now is the time for aggressive expansion.

Though there are many coffee shop chains in the market and new players are actively expanding, the company is confident there is room for the premium coffee market to grow in Thailand.

The premium coffee segment has a few players including Starbucks, Doi Chaang and Coffee World. Sales of premium coffee account for 20-30% of the overall coffee chain market.

Apart from the domestic market, Doi Chaang plans to speed up its expansion in Asean. It hopes to have a presence in all Southeast Asian countries in the next five years.

Currently, Doi Chaang has 10 branches in Malaysia and one branch each in Indonesia and Myanmar. All are operated on a franchise basis.

The company is looking for space to open its second branch in Myanmar this year. By the end of the year, the first branch of Doi Chaang will be opened in Laos by a local franchisee.

Doi Chaang is also looking for more opportunities in other Asean countries.

"After we have branches in all Asean countries, we hope our coffee brand will be available worldwide one day," Mr Jarern said.

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