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tesg's
guide to
big chain road food consumption

CHAIN -- Dairy
Queen
Owner -- Berkshire-Hathaway
Primary Operating Region -- Nationwide
Number of Locations -- Over 5,000
It's
a summer Saturday night in Grand Forks, ND. The Donut Hole is closed in
the evenings, and their parking lot becomes overflow for the Dairy Queen next
door. People...REGULAR people, husbands and wives, not gangs and punks...walk in to the small, no-seating store and order their
treats, then hang out in, on, or in front of their cars socializing as everybody
else cruises South Washington. It was as good as it gets. It was
Americana at its finest.
I
highly doubt the founders could have envisioned the effect they would have on
the Heartland over the years.
J.
F. "Grandpa" McCullough and son Alex were ice cream manufacturers in the early
1930s. Along the way, J. F. theorized that ice cream tasted best before it was
frozen hard, since lower temperatures numbed taste buds. They set out to
perform some taste tests on a softer ice cream and see if they could find a way
to manufacture it.
Two
taste tests at local shops proved successful. Alex
noticed a vendor selling frozen custard out of a special freezer on a Chicago
street. By the summer of 1939, the McCulloughs had signed an agreement with the
freezer's designer, Harry Oltz.
One of
the first machines was installed at Sherb Noble's store in Joliet, IL. J. F. dubbed the store "Dairy Queen", because he
believed he had the "queen"' of dairy products. The first Dairy
Queen opened June 22, 1940. The
H.C. Duke Company was brought on board to come up with an improved soft serve machine. They did so, and are to this day the major manufacturer of
the machines.
Expansion
was explosive and a bit uncontrolled. The Dairy Queen product was about
the only consistency. I know of one restaurant that as late as 1990 was
operating with a full-service dining room thanks to being grandfathered in under
later standardized practices.
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Standardization
evolved over the years. Originally, Dairy Queens sold just their trademark
soft serve. Shakes and malts
came along in 1949. Dilly Bars in 1955. The Brazier menu debuted in
1958. Dennis the Menace became a
spokes-character for DQ in 1972, becoming as common a site in DQ as the DQ logo
itself in a relationship that lasted for thirty years (DQ decided not to renew
the agreement in 2002 because the youth crowd didn't really relate to Dennis
anymore). Dairy Queen became a staple
of small towns in the heartland, the summer gathering point. Many stores
were seasonal operations. Some still are.
The
corporate umbrella is International
Dairy Queen Inc, which was formed in 1962 and based in Minnesota. Today,
IDQ also owns the Karmelkorn and Orange Julius brands. IDQ because a
wholly-owned subsidiary of Berkshire-Hathaway (Warren Buffet's monster) in 1998.
So
what makes Dairy Queen different from the rest? First off, the soft serve
is actually ice milk with only 5 percent butterfat, something that came along
because McCullough simply found it tasted better in this format. From
there, it's what they do with the soft serve that makes Dairy Queen
special. Soft serve in a cone covered in a hard shell. The trademark
curl at the top. Dilly bars. Mr. Misty's. Blizzards.
Frozen cakes. All instantly identifiable as DQ products by appearance or
taste.
The
hot foods, marketed for years as the "Brazier" (more
or less French for "charbroiled") menu, have
traditionally been your usual fast food fare. Hamburgers, hot dogs, some
chicken items, and occasionally some other oddball items. All fine, but
nothing is
terribly special here. DQ wants to change that. |
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IDQ
is pushing a new concept called "Grill & Chill", featuring a new
more upscale look and hot foods menu to compliment the desserts.
"Grill & Chill" restaurants use a lot of the interior tricks being
used by the premium sandwich and $5 burrito joints today...wood, stone, and rich
colors. Ordering is done at the counter, you are given a number tag, and
your food is delivered to your table, ala Hardee's and Culver's. Menu
changes include the addition of sandwiches with fresh-baked bread, quesadillas,
upscale salads and a whole new breakfast menu.
New
Grill & Chill locations are going up across the Midwest. I guess the
idea going forward is that franchisees can either build Grill & Chill stores
or "Treat Center" dessert-only stores, and if IDQ had its way, all
existing stores would also be converted this way. But several franchisees
expressed unhappiness about Grill & Chill because the cost of upgrading was
out of reach for many small-town single-store operators. DQ eventually
allowed stores not converting to adopt part or all of the new menu. But
stores that are doing full conversions are finding unexpected demand on
the hot foods menu side, as well as finding people are more likely to come
inside than buzz through the drive-thru.
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I
think you'll be just fine whether you're going into the all-new Grill &
Chill, visiting the old neighborhood walk-up, or the DQ-Orange Julius in the
mall. No matter how gussied-up or stripped-down it is, it is ultimately
still DQ.
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