The parent company of Dunkin’ Donuts and Baskin-Robins ice cream shops plans to expand further in Asia, with thousands of new outlets in China in coming years and ambitions to open its first stores in Vietnam within 18 months.
The moves come as the company, Dunkin’ Brands Inc., sees a steady economic recovery in markets where it operates and amid further appreciation in Asia’s currencies, which should boost the spending power of the region’s consumers.
Currently, Dunkin Brand has minimal presence in some of the region’s fastest-growing markets like China and India. That’s in part because the company focus some of its earlier growth on markets with closer ties to American culture, including places with a sizeable U.S. military presence.
Despite the opportunities for growth in Asia, retail-food operations face significant risks, in large part because of the rising commodity costs squeezing profit margins.