(BRK.A), (BRK.B)
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.