Category Archives: Dairy Queen

Vietnam Key to Dairy Queen’s Asia Expansion

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While Berkshire Hathaway’s Dairy Queen already has over 700 stores in China, it’s Vietnam that the company is focusing on to grow its Asia strategy.

In China, Dairy Queen is a frozen treats only business, and it’s one of the country’s leaders in that category, but in Vietnam, DQ is looking to build stores that feature its food line up as well.

“Vietnam is very important market for us,” DQ CEO John Gainor says. “Vietnam is where we can show that we will do a great job on food as well as frozen treats.”

Unlike some American quick service franchisors that have struggled internationally because their foods are unfamiliar to local tastes and customs, DQ is listening closely to its franchisee to adapt to the Vietnam market.

They key is adapting menu items and offering new items that best suit the Vietnamese consumer. Unlike in the U.S., DQ’s Vietnam stores will serve bone-in chicken.

And since eating a hamburger is a new experience, and people don’t tend to directly touch their food while consuming it in the way American diners do, they are providing an added wrap around the hamburgers.

“They don’t want to pick up their food with their hands and we are adapting to that,” Gainor says.

Also, since hamburgers are a less familiar food in Vietnam, DQ is focusing much of its food promotion on its chicken menu items.

DQ is also adapting its frozen treats to Asian tastes, offering flavors such as green tea with red bean, almond and extra green tea.

There are already several locations open in Ho Chi Minh City and Hanoi, and DQ is aiming for five of its Grill & Chill locations and fifteen treats only locations.

Our slogan is “Fan Food not Fast Food,” notes Gainor. “We are looking to make fans of our food the way people are in the U.S.,” where the brand has very high customer loyalty built on its 77-year history.

There are currently over DQ 6,000 restaurants in the United States, Canada and 18 other countries.

For more information on Dairy Queen’s world-wide plans, read a Mazor’sEdge special report on Dairy Queen.

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Dairy Queen Goes Inter-Galactic with Guardians of the Galaxy 2 Movie Tie-In

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The Dairy Queen® brand is teaming up with Marvel Studios’ highly anticipated movie release, Guardians of the Galaxy Vol. 2, to launch the Guardians Awesome Mix Blizzard Treat and #MissionMixtape, a Fan journey to claim an exclusive mixtape.

The promotion then has fans search the galaxy for a cassette player to hear their celestial reward.

“The Marvel collaboration allows us to bring our Fan Food philosophy to life in our new summer blockbuster Guardians Awesome Mix Blizzard treat,” says Barry Westrum, executive vice president of Marketing for American Dairy Queen Corporation (ADQ). “In the movie, the Guardians are stronger as a team. Likewise, we teamed up with Marvel to create a Fan favorite summer Blizzard treat flavor, mixing brownie and cookie pieces to create ‘Brookie’ pieces and combining them with caramel, choco chunks and DQ vanilla soft-serve.”

Starting April 26 at 12 p.m. CDT, Fans can claim one of 1,000 Mission Mixtapes at MissionMixtape.com. Once claimed, Fans must search the galaxy for a cassette player to play the tape and get a special code for prizes ranging from limited edition, cast-signed Marvel Studios’ Guardians of the Galaxy Vol. 2 movie posters to DQ gift cards. Each cassette tape also includes original, unofficial ‘bonus’ tracks. Fans can share their missions or follow along with #MissionMixtape.

Additionally, customers can upgrade the small sundae in the $5 Buck Lunch meal to a small Blizzard treat for an additional $1.

The promotion is only the second time that Dairy Queen has done a movie tie-in in the past twenty years. In 2015, Dairy Queen tied-in with Jurassic World, which went on to be the biggest film of the summer and the second highest grossing film of the year.

At the time, Dairy Queen’s CEO, John Gainor, noted that he was delighted to see how the branding tie-in boosted sales across the board, and especially for their Blizzard dessert that came in a Jurassic World-themed cup.

Hopefully, Guardians of the Galaxy Vol. 2 will have a similar effect.

For more information on Dairy Queen’s world-wide plans, read a Mazor’sEdge special report on Dairy Queen.

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

2016 Was the Year Dairy Queen Was Chillin

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Berkshire Hathaway’s Dairy Queen, the venerable food and frozen treat purveyor, rolled out more of its DQ Grill & Chill franchises in 2016 than in any year prior.

Dairy Queen opened 318 locations worldwide, including 82 new stores in the United States.

Phoenix, upstate New York, Southern California, and South Carolina are all areas where Dairy Queen has major expansion plans, and internationally, South Korea plans to open 50 DQ Grill & Chill locations within the next five years.

The South Korea agreement is with the privately held M2G USA Investment, Inc., whose diversified business portfolio includes ownership of restaurants, hotels, public storage businesses, household appliance manufacturing, shoes and an extensive global real estate portfolio.

“The DQ® brand continues to expand in new international markets,” said John Gainor, President and CEO of International Dairy Queen, Inc., said at the time of the announcement. “We are looking forward to working with M2G USA Investment to bring our renowned menu, signature treats and quality service to the Republic of Korea.”

Closer to the U.S., Dairy Queen’s plans call for the development of DQ Grill & Chill locations in Trinidad and Tobago, DQ Grill & Chill and DQ Treat locations in Jamaica, and DQ Treat locations in St. Lucia, Grenada and St. Maarten.

The DQ system has more than 6,700 locations with more than 2,200 of those units operating outside of the United States.

For more information on Dairy Queen’s world-wide plans, read a Mazor’sEdge special report on Dairy Queen.

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Dairy Queen Plans Major International Expansion in Korea

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International Dairy Queen, Inc. has signed a multi-unit development agreement to expand into the Republic of Korea with plans to open 50 DQ Grill & Chill locations within the next five years.

The agreement is with the privately held M2G USA Investment, Inc., whose diversified business portfolio includes ownership of restaurants, hotels, public storage businesses, household appliance manufacturing, shoes and an extensive global real estate portfolio.

“The DQ® brand continues to expand in new international markets,” said John Gainor, President and CEO of International Dairy Queen, Inc. (IDQ). “We are looking forward to working with M2G USA Investment to bring our renowned menu, signature treats and quality service to the Republic of Korea.”

The DQ Grill & Chill locations in Korea will serve a full range of food options including its signature GrillBurgers™, fan favorite chicken strip baskets, chicken sandwiches, a variety of salads and sandwiches. The DQ Grill & Chill restaurants will also feature the full menu of its world famous DQ treats, including the signature Blizzard® Treats, MooLatté Frozen Coffee Flavored Beverages, soft-serve cones with the signature curl on top, sundaes and DQCakes.

“Our goal is to be the most desirable QSR (Quick Service Restaurant) company in Korea that believes in the vision of people, product and process,” said John Park of M2G USA Investment, a partner in the ownership of Taco Bell restaurants in Korea and in the U.S. “DQ is one of the most respected, exceptional and popular brands in the world. We are thrilled to partner with the DQ system here in Korea.”

The DQ system has more than 6,700 locations with more than 2,200 of those units operating outside of the United States.

For more information on Dairy Queen’s world-wide plans, read a Mazor’sEdge special report on Dairy Queen.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Hot Phoenix Area to See Blizzard of New Dairy Queen Outlets

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Add Phoenix, Arizona to the list of cities that will have an expanded presence for Dairy Queen. Five new DQ Grill & Chill restaurants are planned for the Phoenix metro area.

Locations already opening in the West Valley, and Surprise and Goodyear will be opening by the end of December.

The emphasis on the Phoenix area comes as the city of Surprise ranked number five on a list of fastest growing cities in the United States.

Additional locations will be opening their doors in 2017, including Laveen, which will open in January, and two restaurants in Chandler in March and October.

Other locations are planned in Tempe, Gilbert, Scottsdale, Mesa and Glendale.

All the new Dairy Queen’s will be franchises, in keeping with Dairy Queen’s strategy to avoid company-owned stores. The chain has only three company-owned locations among its over 6,000 locations worldwide.

Other cities and states that have seen the “Fan Food” and frozen treats chain announce big expansion plans include Massachusetts, South Carolina, California, as well as Upstate New York, Chicago, and Knoxville, Tennessee.

For more information on Dairy Queen’s world-wide plans, read a Mazor’sEdge special report on Dairy Queen.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

San Diego County to Double the Number of Dairy Queens

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Good news for ice cream lovers! California’s San Diego County will double the number of Dairy Queens over the next five years.

Dairy Queen plans to open two new Dairy Queens per year with the first one to open by the end of 2017. All of the locations will be “DQ Grill & Chill” restaurants.

Dairy Queen has a long history in the San Diego area, with its 12260 Woodside Avenue location in Lakeside going all the way back to 1958.

The challenge is finding suitable locations due to the high cost of real estate in the area.

A Grill & Chill outlet ranges in size from 1,886 – 2,612 sq ft and requires a lot size of 20,952 – 29,670 sq ft.

Major California Expansion

Dairy Queen is also planning to triple its northern California locations, adding another 200 locations to its existing 98 locations, as Dairy Queen hasn’t been a common sight in the Bay area, with only 12 locations currently open.

In all, Dairy Queen, which has moved from a summer treats business to a year-round food and ice cream business model, plans to add 400 locations in California.

For more information read a Mazor’sEdge special report on Dairy Queen.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Dairy Queen Has Big Plans For Riverside County, California

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Dairy Queen has big plans for Riverside County, California. Fourteen new Dairy Queen “Grill & Chill” restaurants will be developed in the area over the next five to ten years.

Currently, Blizzard lovers have to be satisfied with a tiny walk-up only stand that dates from the 1950s. While it’s charming, it doesn’t showcase the DQ experience that has greatly boosted the companies sit-down business.

Dairy Queen is aggressively looking for franchisees for underserved areas, and the Riverside area is one of its top priorities.

The first of the new DQ Grill and Chills was opened in Cathedral City in September 2015, and a lot more will be coming.

Major California Expansion

Dairy Queen is also planning to triple its northern California locations, adding another 200 locations to its existing 98 locations, as Dairy Queen hasn’t been a common sight in the Bay area, with only 12 locations currently open.

In all, Dairy Queen, which has moved from a summer treats business to a year-round food and ice cream business model, plans to add 400 locations in California.

For more information read a Mazor’sEdge special report on Dairy Queen.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Dairy Queen Plans Major Expansion in Upstate New York

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The Buffalo Niagara area of Upstate New York could see as many as 100 new Dairy Queen restaurants over the next decade.

All the locations would be Dairy Queen’s Grill & Chill restaurants, and Dairy Queen is currently looking for local franchise operators in the Upstate area.

In March, 2016, Dairy Queen announced plans to rollout 60 new stores in nearby Massachusetts. Potential locations include the towns of Taughton, Peabody, Burlington, Plymouth, and the city of Worcester.

For more information read a Mazor’sEdge special report on Dairy Queen.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Dairy Queen Goes All In On Snacks

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Dairy Queen has unveiled a new line of oven-hot snacks, a first in the quick-service restaurant category. With the introduction of the DQ Bakes!® Snacks Menu, the brand is aimed at today’s on-the-go consumer looking for higher quality snacking options such as soft pretzels with zesty queso, potato skins and snack melts.

The new DQ Bakes! Snacks Menu is the first menu enhancement to come out of the DQ Bakes! Institute. The DQ Bakes! Institute was established in 2015 to inspire, develop and enhance innovation from the DQ kitchen. The DQ Bakes! Institute creates new and unique taste experiences fans can’t get anywhere else and made-to-order innovations served straight from the DQ oven.

“In developing the DQ Bakes! Snacks Menu, it was important for us to show these items are not simply smaller versions of products we currently offer like others routinely do in our category,” said Barry Westrum, Executive Vice President of Marketing for American Dairy Queen Corporation (ADQ). “Instead, they are two brand new snacks created with distinct cravings in mind. We know Millennials enjoy snacking throughout the day and relied on that insight to create a high-quality menu specifically made for snacking. Our snack menu continues to prove that the DQ brand truly listens to our Fans when creating new menu items.”

The snacks include:

• Soft pretzel sticks with zesty queso: Three soft pretzel sticks, served hot from the oven, topped with salt and served with warm zesty queso dipping sauce.
• Potato skins: Potato skins served hot from the oven filled with zesty queso cheese sauce, bacon bits, cheddar cheese and seasoned with a dash of salt & pepper.
• Buffalo chicken snack melt: Grilled chicken, buffalo sauce, ranch dressing and melted cheddar cheese inside a tortilla toasted to perfection.
• Chicken bacon BBQ snack melt: Grilled chicken, BBQ sauce, bacon and melted cheddar cheese inside a tortilla toasted to perfection.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

U.S. Market for Duracell Batteries Projected to Grow

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Despite some analysts questioning whether Berkshire Hathaway’s 2016 purchase of Duracell from Proctor and Gamble makes long term sense, domestic battery sales look to continue to be a growth area.

Sales of household batteries will reach $4,750 million by the year 2020, up from $4,125 million in 2015, according to Research and Markets’ new report, “Household Batteries: Consumer Market Trends in the U.S.”

According to the report, the compound annual growth rate for the period is projected to be 2.9%.

Three manufacturers dominate the U.S. market for household batteries: Berkshire Hathaway’s Duracell brand; Energizer, maker of both Energizer and Eveready batteries; and Spectrum Brands, which makes Rayovac.

Away-From-Home Market Also Has Growth Potential

For Duracell, the away-from-home battery market also has growth potential. It not only grew 2% from 2012 to 2014, but Duracell’s share of that market grew as well.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.