In 2004, Dairy Queen was known more for its “cool treats” than its “hot eats.” However, consumers’ ice cream buying habits were growing more scattered and diversified with an increasing number of outlets providing more variety. So, Dairy Queen strategically turned to focusing more on its ‘food’ business to grow franchisee revenue and profitability.
At the time, a core target DQ customer was a mom with a car full of kids who were ready to celebrate life’s everyday sports team victories. Kids were making an appeal, moms were listening, and Dairy Queen wanted to give them another reason to come back more often. Steeped in consumer research and franchisee approval, DQ introduced a fresh tasting, quality food option in the Iron Grilled Sandwich platform.
We launched the freshly-made-for-you options in 2008 – in the middle of an economic crisis – leading to a 5% increase in foot traffic and incremental revenue of over $200M. With the introduction of Iron Grilled Sandwiches, Franchisees, youth sports teams, and moms were provided with another reason to smile.