Industry News | October 7, 2009

China Expansion to Boom for Dairy Queen

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Dairy Queen opened its 200th location in China and expects to open 500 more in the next five years.

The 200th store is located in Xi’an, the capital city of Shaanxi Province. It is operated by Red Flag Profits, which is a wholly owned subsidiary of Shanghai Shida Catering Management Co. Ltd.

Headquartered in Minneapolis, Dairy Queen expanded into China in 1991 and expects China to be the largest market outside of the U.S. and Canada by 2010. Dairy Queen rapidly expanded in the country over the last year, adding 115 locations along the east coast and to provinces such as Hubei, Shaanxi, and Sichuan.

“The Dairy Queen brand has experienced tremendous growth in China over the past several years and we look forward to continued expansion with our development partners,” says John Gainor, president and CEO of International Dairy Queen Inc. “Our same-store sales here grew 17 percent in the first half of this year compared to the same time last year. We believe this is a result of strong operating partners in China that provide the very best products and service to our guests every day.”

Locations throughout China serve the same products as they do in the U.S., including the signature Blizzard Flavor Treat, soft-serve cones, sundaes, frozen cakes, and other treats, as well as the MooLatté Ice Blend Coffee Beverage and the Orange Julius line of premium fruit smoothies.

“We are proud of our relationships with our franchisees throughout China,” Gainor says. “Hop Hing Fast Food opened the first DQ location in Beijing in 1991. Their foresight and success has helped our franchisees in China grow and create positive memories for all who touch DQ. Shanghai Shida Catering is helping to continue what was started in 1991 and creating smiles and stories throughout their 115 locations.”