Dairy Queen closes dozens of locations in Alaska, Montana, Texas
Lammes Candies, a Texas confectioner founded in the 1800s, is winding down after 141 years as rising ingredient and labor costs squeeze margins, marking the end of a family-run business. (Credit: FOX 7)
The financial pressures battering the U.S. restaurant industry have reached one of America’s most iconic legacy brands.
Multiple news outlets reported Friday that Dairy Queen has shuttered dozens of locations nationwide. From the heart of Texas to the interior of Alaska, local communities are losing long-standing businesses as independent franchisees grapple with a tightening economic climate and strict corporate compliance mandates.
In late June, a single franchisee in Alaska closed its three locations in Anchorage, Wasilla and Palmer, the Anchorage Daily News first reported. The closures left just one Dairy Queen operating in the state, in Soldotna.
PAPA JOHNS SHUTS DOWN DOZENS OF LOCATION ACROSS 17 STATES AS FAST-FOOD COMPETITION INTENSIFIES
Weeks earlier, a Dairy Queen franchisee in Great Falls, Montana, shut down his restaurant after 39 years in business. He told local news outlet KRTV that he was converting the location into a Mediterranean restaurant to bring “something fresh and exciting” to the area.
A Dairy Queen employee displays an ice cream cone for a photograph at a DQ Grill & Chill restaurant in Manhattan. (Getty Images)
However, the bulk of the national closures stems from a corporate compliance dispute. According to the Austin American-Statesman, Dairy Queen’s U.S. parent company revoked the franchise rights of Texas-based operator Project Lonestar after it failed to complete required building remodels.
Because the operator was blocked from ordering official Dairy Queen inventory, the move forced the immediate closure of 42 Texas locations between February and March.
PepsiCo CEO Ramon Laguarta discusses how the food and beverage giant is seeing massive paybacks after slashing consumer prices on ‘The Claman Countdown.’
Dairy Queen did not immediately respond to Fox News Digital’s request for comment.
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Dairy Queen’s international headquarters are based in Minneapolis and operates as a subsidiary of Warren Buffett’s Berkshire Hathaway. To date, Dairy Queen has roughly 7,800 locations in more than 20 countries.
Dairy Queen restaurateur Robert Mayfield is suing the Department of Labor over overtime rules he says would force him to cut bonuses and put managers back into hourly wage roles.
According to a recent Dairy Queen press release, the company’s growth strategy appears focused on expanding into new markets, including plans to open 20 “DQ Grill & Chill” restaurants in Puerto Rico.
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