Berkshire Hathaway’s International Dairy Queen, Inc. (IDQ) has recently unveiled its ambitious plans to expand its presence in China’s quick-service restaurant (QSR) industry. In a strategic move, IDQ’s wholly owned subsidiary, American Dairy Queen Corporation, has partnered with CFB Group, a franchise ownership company based in Shanghai, to establish 180 food-centric DQ® restaurants across China by 2034. This collaboration marks CFB Group’s entry into the food-centric DQ restaurant segment in Asia.
Nicolas Boudet, the Chief Operating Officer, International, at International Dairy Queen, emphasized the significance of introducing food-centric restaurants as a crucial component of their international growth strategy. By offering a balanced selection of hot food and treat menus, IDQ aims to cater to the diverse preferences of Chinese consumers. With CFB Group spearheading this venture, the stage is set for a groundbreaking expansion in their fastest-growing market worldwide.
Alan Hsu, CEO of CFB Group, highlighted the fruitful partnership between CFB Group and International Dairy Queen, which has spanned over two decades. During this time, they have successfully developed and launched unique treat products tailored specifically for the Chinese market. As a result, the DQ brand has established itself as a thriving quick-service restaurant brands in China. Building upon this success, CFB Group and International Dairy Queen are now focused on innovation and product development to meet the demands of Chinese consumers craving hot food menu items. The ultimate goal is to position DQ restaurants as leaders in offering both balanced hot food and treats, thereby expanding their fan base to encompass customers seeking complete meals as well as indulgent treats.
Currently, CFB Group operates more than 1,000 DQ restaurants in Mainland China. In March 2022, they committed to opening an additional 600 treat-centric DQ restaurants by 2030. As part of the new plans, 180 of these establishments will be food-centric DQ restaurants, set to be launched by 2034. With this ambitious expansion, CFB Group is poised to consolidate its position in China’s QSR industry and further strengthen its foothold in one of IDQ’s most crucial markets.
China is the fastest-growing market for IDQ, ranking among the top three in terms of size alongside the United States and Canada. Currently, China boasts over 1,300 DQ restaurants, illustrating the tremendous potential for further growth and success in this dynamic region.
© 2023 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 a 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.