Category: Dairy Queen

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A blizzard in Poland won’t be a bad thing now that Dairy Queen has opened its first location.

Poland brings to 28 the number of countries outside the U.S. and Canada that have a Dairy Queen, and continues Berkshire Hathaway’s wholly-owned quick service restaurant brand’s expansion in emerging market.

The newly opened DQ® Treat store at Wola Park Mall in Warszawa will be joined by two additional locations before the end of the year, including a DQ Grill & Chill restaurant at the Wola Park Mall.

Just the Beginning

The three locations are just the beginning of a plan that will see Dairy Queen become a common sight in Poland. Expansion plans include 26 DQ Grill & Chill® restaurants and DQ Treat stores throughout the country over the next five years. The locations are being developed by franchisee Sparrow 4 Sp. Z.O.O.

“We believe there is an incredible growth opportunity in this region,” said John Gainor, CEO and President of International Dairy Queen, Inc. (IDQ). “Our partnership with Sparrow 4 Sp. Z.O.O. has allowed us to launch our brand in Poland. Their wealth of business experience and diverse portfolio across Europe is a huge asset to the Dairy Queen system as we continue to invest and build on our global brand equity.”

Expansion Into Eastern Europe

“Our strategy is to open franchises in emerging markets,” Dairy Queen’s president and CEO John Gainor says. “That’s why Poland is a logical choice. We are avoiding countries such as France where the competition is very well established.”

Poland is just the beginning in astern European, according Dairy Queen’s Jean Champagne, Chief Operations Officer — International Groups.

“This move is strategic. We are entering the Eastern European market at a time when Western brands are being embraced by a consumer base that is well informed on the importance of global brands,” Champagne said. “We look forward to working with a strong franchise partner in Poland. We see this as a launching pad for other contiguous countries in the region.”

The DQ system has more than 6,600 locations worldwide, 1,495 of which are outside the U.S. and Canada , and this summer opened locations in Kuwait and the United Arab Emirates.

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

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With temperatures recently reaching 122 degrees Fahrenheit in Salmiya, Kuwait, could there be a better time to open a Dairy Queen?

Berkshire Hathaway’s wholly-owned Dairy Queen® system has opened its first DQ Grill & Chill® restaurant in Kuwait in the Marina Mall in Salmiya.

Kuwait is the 27th country outside the U.S. and Canada with a DQ® presence.

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.

A Focus on Emerging Markets

“Our strategy is to open franchises in emerging markets,” Dairy Queen’s President and CEO John Gainor said.

In April, Dairy Queen signed an agreement with SKM Franchise Co. LTD to open a minimum of 10 DQ locations in Jordan within five years.

“We believe there is an incredible growth opportunity in this region,” said Gainor. “The partnership with Durra Khaled for Foodstuffs Co. has allowed us to successfully re-launch our brand in Kuwait. Their wealth of business experience and diverse portfolio across the Middle East is a huge asset to the Dairy Queen system as we continue to invest and build on our global brand equity.”

Durra Khaled for Foodstuffs Co., a subsidiary of KMGC, has signed a long-term franchise agreement with the Dairy Queen system and plans to develop more than 20 DQ Grill & Chill restaurants and DQ Treat stores throughout Kuwait over the next five years.

The new restaurant features the full DQ Grill & Chill menu including the fan favorite, FlameThrower® GrillBurger™, chicken strip baskets, sandwiches and salads. The menu will also include the world famous DQ signature treats and beverages, such as the iconic Blizzard® Treat, soft-serve cones with the curl on top, sundaes and DQ Cakes.

The opening of the DQ Grill & Chill restaurant in Kuwait comes on the heels of the DQ brand’s recent store opening in the United Arab Emirates earlier this summer.

The DQ system has more than 6,500 locations, 1,457 of which are outside the U.S. and Canada.

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.

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With Universal’s Jurassic World racking up the highest grossing global opening weekend ever, and coming in a close second to Marvel’s The Avengers for the biggest U.S. opening weekend, Berkshire Hathaway’s Dairy Queen found its movie tie-in has become a monster hit as well.

Jurassic World posted a $204.6 million opening weekend, making it the biggest opening weekend for any film ever to debut in the month of June.

The Jurassic World tie-in is a coup for a midsized quick-service restaurant chain such as Dairy Queen, which has 6,400 U.S. locations, as compared to McDonald’s 14,350 restaurants, McDonald’s movie tie-in is with the animated film, Minions, which opens the U.S, market on July 10.

The ad campaign is Dairy Queen’s first movie tie-in in 20 years, and was created by Minneapolis-based Clarity Coverdale Fury Advertising.

Dairy Queen is promoting its Jurassic Smash Blizzard Treat and Jurassic Snack Wrap Duo through a mix of television, digital advertising, and social media. The national and spot advertising already had 4,803 airings as of June 15, according i.spot.tv.

The campaign’s tagline is “An adventure in every bite.”​

The ads feature a customer purchasing a Jurassic Smash Blizzard Treat while the Dairy Queen is under attack by raptors.

“We are absolutely thrilled to be partnering with Universal Pictures for the new Jurassic World promotion,” said Tim Hawley, Vice President of Marketing Communications for American Dairy Queen Corporation. “Like the Dairy Queen system, the Jurassic Park franchise has a tremendous fan base and incredible staying power. This is a spectacular cross-promotional, retail marketing program for us to kick off the summer season and it is certainly one of the highlights of our 75th Fanniversary year.”

Movie tie-ins can be high risk if the movie fails to catch fire. While Dairy Queen is rejoicing with its connection to a box office smash, GM may be less than sanguine with its Chevy Volt tie-in to the Disney flop, Tomorrowland.

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.

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Dairy Queen continues to boost its national advertising profile with its new cross-promotion campaign tied to Universal Picture’s film Jurassic World, which hits theaters June 12.

The film is the next installment of Steven Spielberg’s Jurassic Park series.

Dairy Queen is promoting its Jurassic Smash Blizzard Treat and Jurassic Snack Wrap Duo through a mix of television, digital advertising, and social media. The national and spot advertising already had 3,765 airings as of June 9.

The campaign was created by Clarity Coverdale Fury Advertising, Inc., and is the first movie tie-in for Dairy Queen in 20 years.

The campaign features a customer purchasing Jurassic Smash Blizzard Treat while the Dairy Queen is under attack by raptors.

“We are absolutely thrilled to be partnering with Universal Pictures for the new Jurassic World promotion,” said Tim Hawley, Vice President of Marketing Communications for American Dairy Queen Corporation. “Like the Dairy Queen system, the Jurassic Park franchise has a tremendous fan base and incredible staying power. This is a spectacular cross-promotional, retail marketing program for us to kick off the summer season and it is certainly one of the highlights of our 75th Fanniversary year.”

The campaign’s tagline is “An adventure in every bite.”

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.

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Warren Buffett may love Coca-Cola (he’s 1/4 Coke by his own admission), but Berkshire Hathaway’s Dairy Queen is no longer a lover of carbonated beverages for their kids’ meals.

The franchisor has set a date of September for getting soda out of its children’s menu, which already offers a choice of a carbonated beverage, Arctic Rush slushy drink, or milk.

The move comes as quick-serve restaurants are under increasing pressure to reduce the fat and sugar content of menu items marketed to children.

On the plus side (not the plus size), Dairy Queen already offers the choice of a banana or applesauce in place of French fries, and it already markets a Kids Live Well Menu that features a chicken wrap, a banana, and a bottle of water. The meal omits a frozen dessert.

An Industry-Wide Move Towards Healthier Eating For Children

The Kids Live Well program is an initiative of the Nation Restaurant Association, and is a voluntary industry program that now has over 42,000 participating restaurant locations committed to “providing families with a growing selection of healthful children’s menu choices when dining out.”

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.

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As McDonald’s continues to battle slumping sales, it is turning to Dairy Queen’s winning formula as a key part of its just announced turnaround plan.

McDonald’s announced it will be selling off half of its company owned stores, turning them over to franchisees.

In a similar move, Wendy’s is selling 640 restaurants in the U.S. and Canada to franchisees.

Reducing the number of corporate owned locations was a big part of Burger King’s turnaround when 3G Capital’s partner Daniel Schwartz took the helm as the Chief Executive Officer and a Director of the company. He quickly put the Burger Kings where they belonged, in the hands of more motivated franchisees.

Fortunately for Berkshire Hathaway’s Dairy Queen System, they already knew that franchisees are highly motivated, hard-working people motivated by the ultimate incentive, ownership.

A Winning Formula

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 hundreds of millions a year on its investment of only $585 million.

That’s a sweet formula indeed.

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.

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Berkshire’s Dairy Queen currently has over 6,400 Dairy Queen stores in the United States, Canada and 26 other countries, but it doesn’t have any in Europe.

Zero, zip, nada.

That’s about to end as the Dairy Queen® system has inked a deal for its first locations in Poland.

Why Poland?

“Poland is a country with a robust and stable economy while still having strong growth potential for international brands. In searching for a new opportunity, we were looking for a solid partner who was ready to enter the Polish market,” said Wojciech Siwiec, General Manager of Sparrow 4 Sp. Z.O.O. “We are excited to partner with the Dairy Queen system, whose significant experience and know-how provides a strong foundation for success. We are looking forward to a good collaboration in launching the DQ brand in Poland.”

The initial DQ Grill & Chill and DQ Treat locations in Poland will open in the spring of 2015 in the greater Warsaw metro region.

Expansion Into Eastern Europe

“Our strategy is to open franchises in emerging markets,” Dairy Queen’s president and CEO John Gainor says. “That’s why Poland is a logical choice. We are avoiding countries such as France where the competition is very well established.”

Poland is just the beginning, according Dairy Queen’s Jean Champagne, Chief Operations Officer — International Groups.

“This move is strategic. We are entering the Eastern European market at a time when Western brands are being embraced by a consumer base that is well informed on the importance of global brands,” Champagne said. “We look forward to working with a strong franchise partner in Poland. We see this as a launching pad for other contiguous countries in the region.”

DQ’s International Expansion

While Dairy Queen continues to grow in the U.S., with stores in Manhattan and surrounding boroughs opening last year, the international business has been particularly robust, with 1,426 locations, and over 600 stores in China alone.

Middle East expansion have been particularly aggressive, with Saudi Arabia on track to open 32 locations by 2015 through franchisee Al Safwa Food Group. The largest DQ Grill & Chill restaurant in the world is in Riyadh, Saudi Arabia. Kuwait locations are owned by Khaled For Foodstuffs Co., a subsidiary of KMGC, and UAE locations are owned by U.S.-based International franchise company Bajco Group.

Dairy Queen doesn’t want to do its international expansion piece meal, and is looking for franchisees with the strength to take on whole countries.

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.

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There will soon be a Blizzard in Jordan. The country is the latest addition to Dairy Queen’s Middle East expansion that already includes locations in Bahrain, Brunei, Egypt, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.

SKM Franchise Co. LTD will launch a minimum of 10 DQ locations within the first five years of its recently signed long-term agreement.

The company’s first of five DQ Grill & Chill restaurants will open in late 2015.

The Nafal brothers, who lead SKM Franchise Co. LTD, have more than 20 years of retail development experience. In 2005, they opened El Rancho Supermercado, which grew into a chain of 16 supermarkets in Texas, with 6 stores in Dallas. They also own La Bodega, a food distribution company.

“We are very excited and enthusiastic about introducing the DQ brand to Jordan,” said Mario Nafal. “It’s a powerful global brand with a strong heritage. Jordanians will soon become part of the legion of fans the DQ system has around the world. We look forward to this tremendous opportunity.”

DQ’s International Expansion

Berkshire Hathaway’s Dairy Queen® system currently has 6,400 Dairy Queen stores in the United States, Canada and 26 other countries. The international business has been particularly robust, with 1,426 locations, including over 600 stores in China alone.

Middle East expansion have been particularly aggressive, with Saudi Arabia on track to open 32 locations by 2015 through franchisee Al Safwa Food Group. The largest DQ Grill & Chill restaurant in the world is in Riyadh, Saudi Arabia. Kuwait locations are owned by Khaled For Foodstuffs Co., a subsidiary of KMGC, and UAE locations are owned by U.S.-based International franchise company Bajco Group.

Dairy Queen doesn’t want to do its international expansion piece meal, and is looking for franchisees with the strength to take on whole countries.

For more on Dairy Queen, 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.

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While food fads come and go, tried-and-true Dairy Queen continues to prosper and expand its global footprint.

Berkshire Hathaway’s wholly owned Dairy Queen System has announced a 20+ store franchise agreement with Durra Khaled For Foodstuffs Co., a subsidiary of KMGC, for a 5-year roll out of DQ Grill & Chill restaurants and DQ Treat stores in Kuwait.

A separate franchise deal for the United Arab Emirates was recently inked with U.S.-based International franchise company Bajco Group.

After a ten year absence, the agreements mark Dairy Queen’s return to the Kuwait and UAE markets at a time when its brand has a growing presence throughout the Middle East. Dairy Queen already has established stores in Bahrain, Brunei, Egypt, Oman, Qatar, and Saudi Arabia. The first Kuwait and UAE stores will open in 2015.

“As we prepare to celebrate the 75th anniversary of the DQ brand next year, we are building on our global brand equity as well as looking forward to developing future growth opportunities in the region,” said Brad Houser, Executive Vice President of International Development “We are thrilled to be re-entering the Kuwait market and partnering with Durra Khaled For Foodstuffs Co., a group that brings a wealth of business experience through its diverse portfolio.”

Continued International Expansion

Dairy Queen currently has 6,400 Dairy Queen stores in the United States, Canada and 26 other countries. The international business has been particularly robust, with some 1,394 locations, and over 600 stores in China alone. Its Middle East expansion have been particularly aggressive, with Saudi Arabia on track to open 32 locations by 2015 through franchisee Al Safwa Food Group. The largest DQ Grill & Chill restaurant in the world is in Riyadh, Saudi Arabia.

Dairy Queen doesn’t want to do its international expansion piece meal, and is looking for franchisees with the strength to take on whole countries.

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

© 2014 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.