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NEWS UPDATES Asean Affairs           26   July  2011

Dairy Queen and Burger King speed expansion

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Two food chains of the Minor Food Group -Dairy Queen and Burger King - plan to expand their businesses faster in the second half of this year to respond to the public's greater spending power.

Anupon Nitiyanant, marketing manager of Minor DQ Co, which operates the Dairy Queen ice-cream chain, said the company planned to open an additional 30 Dairy Queens this year, topping last year's expansion.

The new outlets will bring its total to 250 by year-end. Dairy Queen will expand faster this year because the brand is stronger, indicating better-than-expected customer feedback from the opening of 10 Dairy Queens in the first half.

At the same time, sales from existing locations in the same period grew by 14%, also higher than earlier projections.

Mr Anupon said the positive performance stemmed from the opening of new outlets, nationwide promotion and the renovation of existing outlets to have a similar design as in overseas markets. The company expects sales to rise 20 percent to 1.2 billion baht, beating the soft ice-cream industry's growth of 10 percent.

While Dairy Queen revenues mainly come from Blizzard products, it will put more effort into its MooLatte blended coffee drink, a new business pillar. The sales contribution of MooLatte is seen rising to 16 percent from the current 10 percent.

Meanwhile, Nardtayar Kijthaweesin, marketing manager of Burger (Thailand) Co, said the chain aimed to double its business over the next two years. It plans both horizontal and vertical business strategies to attract more diners.

"When talking about burgers, Thai consumers now think of Burger King only for its meat menu. The thing they don't know is we also offer various menu items from meat and chicken to fish," Ms Nardtayar said.

She said the company would increase its reliance on local customers with new menus and more suitable sizes.

Sales at Burger King in the first six months of the year grew at a double-digit rate. It opened one outlet at Central Festival Phuket in the first half, bringing the total to 27. With the country's better economy and rebounding tourist numbers, the company plans to open several Burger Kings in the second half.


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ASEAN  ANALYSIS

This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 

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