For decades, Dairy Queen has been known for its quality desserts. The brand’s soft-serve ice cream has been a staple in the United States for decades and is a beloved treat on hot summer days (and even on winter days if you live in the right climate.) But as with most companies, Dairy Queen has seen a tremendous opportunity for growth by adding to their menu in a way that makes them more versatile.
Enter the Dairy Queen Grill & Chill. It’s the brands QSR concept that mixes the best of dessert with the best of dinner – all in one location. Not only is it a smart concept that’s been around since 2001, it’s one of the fastest-growing right now. Each week, Dairy Queen adds to its 2,400-plus Grill & Chill locations worldwide.
This fast growth makes sense when you look at the numbers. The company claims 40 percent growth in its food business over the past five years, and the quality of the food has definitely made a difference in that growth.
Shortly after Dairy Queen first opened, it did in-fact have a food concept. The Brazier store served limited food options, such as hot dogs and a small number of other food items. But over time, customers barely associated the Dairy Queen brand with food.
Grill & Chill sets the Dairy Queen Brand on Fire
2001 changed all that with the introduction of the Grill & Chill. The biggest challenge, however, has been marketing the food offerings to customers who have had the “dessert first” mindset when it comes to how they see Dairy Queen.
To overcome this consumer mindset, Dairy Queen has been aggressively tweaking and marketing the brand and remodeling stores as-needed at a blistering pace. In fact, the past three years have seen over 850 location remodeled and refreshed.
DQ is quickly converting all its remaining Brazier location to Grill & Chill models. Those that can’t be remodeled are being relocated to nearby locations that meet the space and demographic requirements.
On the franchisee side, there’s a positive vibe going on as the brand has been very loyal to location owners. by ensuring a quality product and a well-marketed brand, franchisees are getting the benefits of a competitive advantage – and that’s turning into real profits for owners and head office alike.
Dairy Queen Growth Starts and Ends With Dessert
There’s no denying that the Dairy Queen brand has been built on its famous soft-serve ice cream products. So it’s no surprise when the brand notes that a substantial number of diners leave with a Blizzard or similar treat in-hand after a meal. This is a good indication that the Grill & Chill model isn’t just creating a new group of customers for the decades-old brand – it’s ensuring that existing brand fans are getting more of what they want in one place.
Can you think of a brand you enjoy that has gone through a similar transformation? Tell us about it in the comments!