Category: Dairy Queen

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Add Dairy Queen to the list of restaurants pushing a coffee lineup to compete with Dunkin Donuts, Starbucks, and McDonald’s.

The company is also trying to lure customers in at a traditionally slow time of day through a new campaign that focuses on the period between lunch and dinner.

The afternoon-snack daypart is seen by Quick Service Restaurant experts as one of the major growth opportunities in the category, after competition has heated up for breakfast and late-night business.

The Dairy Queen® system is now offering iced coffee and frappés for the first time nationally in the U.S., as a part of the launch of its new campaign called “The Hardest Working Happy Hour,” which makes special prices available weekdays at participating U.S. locations from 2 to 5 p.m.

Dairy Queen is offering its fans the choice of a new Vanilla, Salted Caramel or Mocha flavored Iced Coffee; new OREO®, Caramel Chip or Midnight Mocha DQ Ultimate Frappés; and Strawberry Banana, Tripleberry®, Mango Pineapple and the new Strawberry Watermelon Orange Julius® Premium Fruit Smoothies at one of the best values in the industry.

The small flavored Iced Coffees are only $1, and the small, blended to perfection new DQ Ultimate Frappés and small Orange Julius® Premium Fruit Smoothies are just $2 weekdays from 2 to 5 p.m. at participating locations.

While the beverages are available all day, they are value priced only during Happy Hour.

“This is our biggest beverage launch ever and happy hour is a very competitive day-part across all restaurant brands. We’ve really differentiated ourselves from other QSR and beverage competitor happy hour programs by creating a stir in our space with variety, value and taste,” said Barry Westrum, executive vice president of Marketing for American Dairy Queen Corporation (ADQ).

“Our fans want something different and better and at our DQ locations they can now treat themselves to the unbelievable every day. With our Hardest Working Happy Hour, fans will find quality, portable iced coffee DQ Ultimate Frappés and smoothie beverages at a great price and offered in a uniquely DQ way. It’s an extra indulgence during the day that’s perfect as an afternoon on-the-go pick-me-up.”

In 1998, Berkshire Hathaway acquired Dairy Queen for $585 million in cash and stock. At the time there were 5,790 locations in the U.S. and internationally. There are now some 6,700 locations worldwide.

For an in depth look at Dairy Queen 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.

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After extensive product testing, Dairy Queen has decided to roll out a funnel cake dessert at its U.S. locations. A funnel cake is a fried batter staple of carnivals and fairs that is especially popular throughout the Midwest. Usually topped with powdered sugar, Dairy Queen sees it as the perfect base for its soft-serve ice cream.

Dairy Queen has test marketed its funnel cake desserts as part of its DQ Bakes!® Institute, and even flew in food bloggers to its Minneapolis headquarters to get their reactions.

“We do a lot of consumer research and test markets,” notes Dairy Queen’s president and CEO John Gainor.

The 76-year-old company has been aggressively adding to its menu, and in 2015 the company introduced its DQ Bakes! menu with nine products across three categories: Hot Desserts à la Mode, Artisan-style Sandwiches and Snack Melts. DQ locations across the U.S (excluding Texas) installed ovens to make the new menu items.

Gainor also points out that the funnel cakes fit right in with the “fan food” customer experience that Dairy Queen is known for. It’s a loyalty that has brought the company 10,472,082 likes on Facebook.

“A lot of our consumer research focuses on the emotional connection that you take out of the store,” Gainor says.

The new Funnel Cake a la Mode is planned as a year-round, permanent addition to the menu.

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

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.

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Add Louisiana to the target markets for Dairy Queen’s U.S. expansion. The “fan food” and frozen treats franchiser is planning to open as many as 80 new Louisiana locations over the next ten years, including five in Baton Rouge.

The aggressive plans will nearly triple the number of Dairy Queens in The Pelican State from the current 36 stores.

All the stores will be the popular stand-alone “Grill and Chill” design, which Dairy Queen first unveiled in 2002, and now has over 1,000 across the U.S.

A Dozen Target Markets Nationwide

Recently Dairy Queen announced that it would be opening hundreds of new locations in Massachusetts and South Carolina, as well as several hundred in Northern California.

“We have about a dozen targeted markets throughout the United States. Louisiana is one of the primary ones because of the demand for the combination of the food menu and the treat menu items,” said Jim Kerr, International Dairy Queen Inc.’s VP of Franchise Development.

Louisiana’s existing stores are some of the chain’s most profitable, and Kerr notes that the South Sherwood Forest Boulevard “Grill and Chill” has some of the highest numbers of any Dairy Queen in the nation.

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.

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It seems just about every week now Dairy Queen announces a major expansion. Recently it announced that it would be opening hundreds of new locations in Massachusetts and South Carolina.

Now, the frozen treat and “fan food” purveyor is planning to triple its northern California locations, adding another 200 locations to its existing 98 locations.

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.

New locations will begin opening in 2017.

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.

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The first Dairy Queen restaurant has opened in Jordan, making it the latest Middle-East country for the popular quick-service franchisor.

The DQ Grill & Chill restaurant is located at Abdoun Circle in Amman, Jordan, and is the first of ten planned location being developed by the Nafal brothers, who run SKM Franchise Co. Ltd.

According to Dairy Queen, the DQ Grill & Chill restaurants in Jordan will feature the brand’s signature GrillBurgers, chicken strip baskets, chicken sandwiches and a variety of salads and other sandwiches along with the full menu of world-famous DQ treats, all of which will mirror the menu found in other countries in the region. The DQ Treat stores will feature the soft-serve products that have made the Dairy Queen system an icon in the industry, such as the signature Blizzard Treat which “is served upside down or it is free,” soft-serve cones with the curl on top, sundaes, Moolatté frozen coffee flavored beverages, DQ Cakes and other delicious treats.

Dairy Queen Focusing on Emerging Markets

“Our strategy is to open franchises in emerging markets,” Dairy Queen’s President and CEO John Gainor said at the 2015 Berkshire Hathaway annual meeting.

Middle East expansion has been at the top of Dairy Queen’s list over the last couple of years. Its list of countries already includes locations in Bahrain, Brunei, Egypt, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, with Jordan in the works.

“We believe the DQ brand will be very well received in Jordan as we continue to grow our DQ fan base around the world,” said John Gainor, CEO and President of International Dairy Queen, Inc. (IDQ). “As we expand our footprint internationally, we rely on strong franchise partners like SKM Franchise Co. Ltd. to uphold our values and brand promise to a larger and more diverse customer base. Working with a knowledgeable, experienced partner with a strong team on the ground allows us the best opportunity for success in our new markets.”

The Nafal brothers have more than 20 years of retail development experience. In 2005, they opened El Rancho Supermercado, which grew into a chain of 13 supermarkets in Texas. They own La Bodega, a food distribution company based in the state as well.

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.

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The cone with the curl on top will become a much more common sight in Massachusetts when Dairy Queen goes forward with a major planned expansion across the Bay State.

Massachusetts does love its ice cream. The Bay State ranks in the top ten of most ice cream consuming states.

Dairy Queen has announced plans to rollout 60 new stores with potential locations including the towns of Taughton, Peabody, Burlington, Plymouth, and the city of Worcester.

While there is already a modest number of locations in Massachusetts, there is currently only one location that sits in the western half of the state. The location is a “Grill & Chill” restaurant in Chicopee, Massachusetts.

In keeping with Dairy Queen’s strategy, the restaurants would all be franchises, and would be built over the next five years.

Dairy Queen has been focusing on state-wide expansion as of late, and is in the midst of building 75 new Dairy Queen Grill & Chill restaurants in South Carolina in 2016.

DQ a Winner for Berkshire

With 6,700+ locations worldwide, Dairy Queen is far smaller than McDonald’s or Burger King, but to its advantage it has only three company owned stores. The cost of the bricks and mortar are born by the franchisees, and Dairy Queen makes its money from franchise fees and a percentage of the sales.

Each franchise pays a $35,000 franchise fee, a royalty fee of 4%, and a marketing fee of 5% – 6%.

In the aggregate the franchises net Berkshire Hathaway hundreds of millions a year on its investment of only $585 million. Increasingly Dairy Queen is making that money year-round as its stronger focus on its food business, including its new DQ® Bakes! line-up, has customers seeing it as more than just a summer treats purveyor.

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.

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The state of South Carolina, and the Myrtle Beach area in particular, is about to become Dairy Queen territory, as the quick-service restaurant chain owned by Berkshire Hathaway looks to build some 75 new Dairy Queen Grill & Chill restaurants in South Carolina in 2016.

Dairy Queen opened 84 new outlets in the United States in 2015, and its goal of 85 new stores in 2016 means that the vast majority of them will be in South Carolina.

Eight of the locations are planned for the popular Grand Strand beach area that runs from North Myrtle Beach to Georgetown.

Why South Carolina? The company cites its “state-of-the-art analytics” for its interest in expanding the state, and the new stores will mean Dairy Queen will have over 90 locations including existing stores.

As a corporate strategy, Dairy Queen shuns company owned stores, instead focusing on its franchise business, and it is looking for franchise owners that want to run multiple stores.

In recent years, new franchises have popped all over Florida, and overseas in places such as Bahrain, Brunei, Dubai, Egypt, Oman, Qatar, and Saudi Arabia.

DQ a Winner for Berkshire

With 6,700+ locations worldwide, Dairy Queen is far smaller than McDonald’s or Burger King, but to its advantage it has only three company owned stores. The cost of the bricks and mortar are born by the franchisees, and Dairy Queen makes its money from franchise fees and a percentage of the sales.

Each franchise pays a $35,000 franchise fee, a royalty fee of 4%, and a marketing fee of 5% – 6%.

In the aggregate the franchises net Berkshire Hathaway hundreds of millions a year on its investment of only $585 million. Increasingly Dairy Queen is making that money year-round as its stronger focus on its food business, including its new DQ® Bakes! line-up, has customers seeing it as more than just a summer treats purveyor.

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.

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Cineplex Digital Media, previously known as EK3, has been come an officially-endorsed signage provider to American Dairy Queen.

“We are honored to have been selected by American Dairy Queen Corp. as its provider of digital menu board solutions,” noted Cineplex Digital Media President Nick Prigioniero. “It is a privilege to collaborate with this internationally recognized, top-tier brand.”

Dairy Queen selected the company after its RFP brought thirty proposals from a variety of signage providers.

“Broadening our digital merchandising initiatives is a key strategic priority for us,” Janna Rider, Director of Digital Merchandising for American Dairy Queen, said. “It was imperative to our brand that we select a business partner that will address not only the present requirements but also provide innovative, integrated digital solutions that meet the expectations of our future ‘fans,’ while supporting the needs of our franchisee community.”

Cineplex Digital Media uses proprietary content management system software to manage its digital menu board networks, which enables franchisees to manage their in-store digital marketing programs from a single access point, giving them maximum flexibility and more control.

Some forty Dairy Queens so far have already installed  the digital signage across the United States.

For more information on Dairy Queen’s expanding business, read the 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.

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Charleston, South Carolina will soon be home to as many as eight Dairy Queen “grill and chill” restaurants as the quick-service chain targets the city for a major expansion.

Currently, the only Dairy Queen presence are two of its more limited “treat shops” that are located in the Northwoods Mall in North Charleston and in Summerville.

Dairy Queen franchisee Brad Walker will open between six and eight “Grill and Chill” restaurants over the next five years with the first scheduled to open January 20, 2016, in North Goose Creek Boulevard.

Next up will be a location in West Ashley at a site that is still to be determined.

Brad Walker relocated to Charleston from the Midwest in order to head up the expansion.

© 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.

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When your softball team wins the July tournament where do you go to celebrate? Everyone knows you get ice cream at Dairy Queen. The problem has been that when your hockey team wins in the middle of February, you don’t go there.

It’s a battle that Dairy Queen has been fighting to prove it’s not just summer treats that are the focus of its business.

For decades, some of the oldest Dairy Queen franchises were seasonal and shuttered for the winter, but the modern DQ Grill & Chill is a full-service restaurant that need year-round business.

Dairy Queen’s corporate strategy in recent years has been to boost the quality and advertising for its food items. It’s not just a soft-serve ice cream stand. Look at the DQ Bakes sandwiches to see its efforts to expand its menu items.

DQ’s Efforts are Paying Off

It looks like Dairy Queen’s efforts are paying off. YouGov.com, an internet-based marketing firm that polls thousands of members on a wide variety of issues, is reporting that its YouGov BrandIndex is showing positive news for Dairy Queen.

The BrandIndex is billed as a key measurement of potential revenue, and it’s showing an uptick in interest in eating at Dairy Queen for the month of December 2015, as compared to December 2014.

According to their polling,  in 2014 “31% of adults 18 and over who were aware of the brand considered Dairy Queen when making their next fast food purchase. The percentage is now up to 33%.”

The 6% increase in shows that the company is making progress, and what’s more, the 33% is a healthy one, with the “average Purchase Consideration score for the fast food dining sector overall is 22%.”

DQ a Winner for Berkshire

Dairy Queen, which has 6,400+ locations worldwide, may be smaller than McDonald’s or Burger King, but to its advantage it has only three company owned stores. The cost of the bricks and mortar are born by the franchisees, and Dairy Queen makes its money from franchise fees and a percentage of the sales.

Each franchise pays a $35,000 franchise fee, a royalty fee of 4%, and a marketing fee of 5% – 6%.

In the aggregate the franchises net Berkshire Hathaway hundreds of millions a year on its investment of only $585 million, and more and more its making that money year-round.

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

© 2015 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.