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Dunkin' Donuts hopes to find success in China
November 20, 2008
CANTON, Mass. — Dunkin' Donuts opened its first shop in Shanghai, China, the company announced. The company has secured agreements to open a total of 150 shops in mainland China over the next 10 years and expects to sign additional commitments for expansion in other regions of China in the near future.
Mercuries & Associates, Dunkin' Donuts' franchise partner in both Shanghai and Taiwan, is one of the largest companies in Taiwan and operates multiple consumer brands in the region. It currently operates 15 Dunkin' Donuts shops in Taiwan and will open another 85 shops there over the next several years.
Dunkin has also reached an agreement with Xian-based Shaanxi Stellerich Food & Restaurant Co. LTD to open 50 Dunkin' Donuts shops in Guangdong within the next 10 years. Shaanxi Stellerich is also a franchise partner with Dunkin' Donuts sister brand, Baskin-Robbins, opening the first Baskin-Robbins shop in Shanghai early next year.
The Dunkin' Donuts restaurant in Shanghai will offer coffee and baked goods as well as items customized to suit local taste preferences, such as green tea donuts, mochi rings — cake donuts indigenous to the region — and iced fruit teas.
Today, the company has nearly 1,800 Dunkin' Donuts shops in the Asia Pacific region, including more than 550 in Korea, 600 in the Philippines, and 260 in Indonesia.
The Boston Globe reports that Dunkin' Donuts did its homework in preparing for its second attempt at breaking into the China market, from studying the market to extended product development and testing to appeal to Chinese tastes for a less sweet pastry and for tea over coffee. Dunkin' Donut's partnering with Mercuries & Associates, which operates numerous shopping centers and restaurants throughout Asia and knows the ins and outs of getting permits and passing inspections, was also a smart move.
Dunkin' also debated for months over details like the best Chinese name for Dunkin' Donuts before settling on "Tang En Dou Le," roughly translated as "everybody is happy."
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