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Sundaes in Shanghai: Dairy Queen expands global empire

Brooks Johnson, Star Tribune on

Published in Business News

It's getting easier to track down a Blizzard in Beijing.

Dairy Queen opened 450 new locations around the world last year — and 300 of them were in China.

"China continues to be our fastest-growing market," said Troy Bader, CEO of Bloomington-based International Dairy Queen. "International plays a really, really important part of our future."

Dairy Queen restaurants reported $6.4 billion in sales last year. Since 2019, sales are up 36%, Bader said, and global growth played a big role in that.

More than a third of Dairy Queen's nearly 7,500 locations are now located outside the U.S. and Canada.

"Our international growth is where we're seeing our greatest opportunities — our presence isn't as mature," Bader said.

 

China is a huge market for American fast-food chains, where KFC and McDonald's are the dominant players. However, local brands are starting to catch up.

"Initially considered a luxury item for a select few, fast food has become increasingly accessible and affordable for a broader segment of Chinese consumers as the economy has grown and disposable incomes have risen," according to a report by Dezan Shira & Associates, a foreign direct investment consultancy, which pegs the Chinese fast-food market at more than $500 billion.

Dairy Queen is focusing on Southeast Asia broadly; the brand already has about 500 locations in Thailand and a presence in other nearby countries like Vietnam and the Philippines.

"We have supply chains established, we have brand recognition," Bader said. "We are looking at new markets, but that is one area we continue to focus on."

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