Central Restaurants Group (CRG) is boosting its investment budget by 30% to 210 million baht to expand its Mister Donut business this year.
Kantapol Srisuwan, CRG's general manager for Mister Donut, said half the new funds would be used to open new Mister Donut branches and the other half for marketing activities.
The company plans to open up to 30 new Mister Donut shops this year, bringing the total to 350.
"Mister Donut will be able to sell its doughnuts in all 77 provinces by year-end," Mr Kantapol said.
CRG is confident of the market potential to open even more Mister Donut branches and expects to have 500 stores in another three or four years.
Competition in Thailand's 3.5-billion-baht doughnut business remains less intense than in other food sectors.
The country is host to only a few players with 600 branches of all brands.
Despite the weak domestic economy last year, overall doughnut demand increased by 10-15% to 3.5 billion baht, said Mr Kantapol.
He believes demand this year will rise to 3.85 billion baht.
Last year, Mister Donut commanded a 55% market share worth 1.92 billion baht.
CRG expects sales growth of 10-15% for the brand this year to between 2.11 and 2.19 billion baht.
Apart from new branch openings, new doughnuts will be introduced to entice more customers.
Mr Kantapol said the company wanted to expand its Mister Donut franchises into other Asean markets and was now seeking approval to do so from the brand owner in Japan.
Mister Donut Co in Japan now directly oversees operations in Indonesia, Malaysia and the Philippines.