Mudman adopts Dunkin' coffee focus as brand shifts
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Mudman adopts Dunkin' coffee focus as brand shifts

Mr Salhani says the Thai coffee market still has room for expansion.
Mr Salhani says the Thai coffee market still has room for expansion.

Mudman Plc, the authorised franchiser for Dunkin' Donuts, plans to change branding next year to attract more white-collar workers and millennials.

Nadim Xavier Salhani, the company's chief executive, said the new Dunkin' logo in Thailand will gradually change next year, starting with packaging and new stores.

The move is in line with the business plan of Dunkin' in the US, where the new Dunkin' logo will appear in January 2019.

"The name change to Dunkin' comes because customers mostly call it Dunkin'," Mr Salhani said. "The new branding signals there is something new there in term of products, store design and a new way to serve our customers."

The change is meant to help the company attract the younger generation and first-time workers, varying from its base of housewives.

Before changing its name, the company is converting its stores to a more modern image and expanding its menu, including new items like 100% Arabica coffee, hot sandwiches and various baked goods, as well as affordable breakfast combos.

With the business strategy adjusting to focus on the coffee business, overall sales of Dunkin' Donuts in the first seven months of the year grew by 10%.

"The future of the doughnut business in Thailand may not be as positive as in the past because people are more concerned about health and the market is very competitive," Mr Salhani said. "This is why we are offering more coffee products."

He said the coffee business still has huge room to grow in the Thai market because per capita consumption remains low here: about one kilogramme, compared with six in the US market.

"With our offensive business plan, we want to become a serious coffee player in Thailand," he said. "When people think of Dunkin', we hope they think of coffee."

The goal is for 30% of Dunkin' Donuts' Thai sales to come from coffee over the next five years, up from 10%, Mr Salhani said.

There are several serious coffee players in the Thai market, he noted, including the US chain Starbucks.

Mudman plans to spend 50 million baht to expand its business in Thailand next year, including opening 12 new Dunkin' stores. It also expects to open a second Dunkin' Drive Thru store here.

The first Dunkin' Drive Thru opened last month.

"Drive Thru is a rapidly growing trend in Thailand, given that convenience is becoming a key element in people's lives," Mr Salhani said. "The Dunkin' Drive Thru store at Porto Go in Bang Pa-in, Ayutthaya is the largest in Asia."

There are 290 Dunkin' Donuts stores in Thailand, with 125 branches called concept stores.

Thailand is the third-largest Dunkin' market in Asia after South Korea and the Philippines.

Dunkin' Donuts controlled about a 40% market share of Thailand's 3.5-billion-baht doughnut market last year.

In addition to Dunkin', Mudman is planning to reduce the price of some Au Bon Pain menu items by 5% in December to lure more customers to stores.

"We originally planned to spend 200 million baht to expand our business this year," Mr Salhani said. "But we may use only 140 million baht this year because consumer spending power has yet to recover."

He expressed optimism about the performance of both Dunkin' and Au Bon Pain next year.

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