(BRK.A), (BRK.B)
Berkshire Hathaway’s Dairy Queen will open 600 new locations in China by 2030, adding the first 100 by the end of 2022.
China is the fastest growing market for the DQ brand and is among the top three in size, alongside the U.S. and Canada. There are currently more than 1,100 DQ restaurants in China.
The quick serve locations will be owned by FountainVest Partners, a leading independent private equity firm with offices in Beijing, Shanghai and Hong Kong. The franchise development agreement, spearheaded by the FountainVest-acquired franchise ownership company CFB Group, expands its stronghold in China. FountainVest recently acquired CFB Group, a franchise ownership group in mainland China with more than 900 DQ restaurants.
“The market for frozen treats is booming in China and we predict the industry will continue a rapid growth trajectory during the next ten years,” said Andrew Huang, managing director at FountainVest Partners. “FountainVest is committed to fully supporting CFB Group’s growth of both its existing DQ restaurants and opening 600 new DQ restaurants by 2030.”
CFB Group has worked with IDQ to develop and launch products unique to the Chinese market, including hard pack ice cream, specialty novelties, light meals and artfully designed DQ Cakes. Across a more than 20-year relationship, CFB Group has outperformed China’s industrial average for frozen treats, making the DQ brand one of the best performing QSR brands in China.
“China remains an important growth market to us, and this expansion with FountainVest provides the opportunity to widen our footprint in one of the fastest-growing countries for QSR,” said Jean Champagne, chief operating officer, international, at International Dairy Queen. “The continued success of our investment in China, which includes several unique-to-China food and treat offerings, showcases the strength of the DQ brand to fans throughout the country.”
© 2022 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.