Dairy Queen’s Director of Franchise Development Talks Canadian Expansion

Tony Watters is the director of franchise development at Dairy Queen*. With more than 20 years in the restaurant and franchising industries, Watters primary goal these days is helping the iconic brand establish a footprint throughout Canada.

Fortunately for Dairy Queen, Watters says the brand’s successful expansion strategy throughout the U.S., which includes an emphasis on franchisee-to-franchisee communications, is well suited for Canadian growth. 

In a conversation with 1851, Watters also addressed how the brand has opened 13 Grill & Chill locations ahead of schedule, how the COVID-19 pandemic affected the brand’s operations and the changing QSR and franchise-investment landscapes. 

1851 Franchise: How did the pandemic affect Dairy Queen? What kind of adjustments were made to ensure franchisee success?

Tony Watters: Our brand was really able to adapt and thrive, thanks to the hard work of our franchisees. When the pandemic first hit, no one really knew the challenges that were ahead. Many of our sit-down franchisees closed for a while, but we saw significant increases in drive thru traffic and digital ordering, which made a world of difference. We launched a digital ordering platform in the last few years, and thanks to that internal development, our delivery sales have exploded.

1851: How do you feel about the QSR segment’s reaction to the pandemic? Are there significant changes in the segment that you think will stick around?

Watters: If you didn’t have a digital space before, you’re definitely going to need it now. Consumers are embracing convenience now more than ever, and delivery service has come a long way since the days of being limited to pizza shops. We’re starting to look into our drive thru options too, and how to enhance our quick-service methods in the most effective ways possible.

1851: How has franchising changed for Dairy Queen over the last 18 months?

Watters: There is a lot of technology that Dairy Queen relies on now, a lot more than just a few months ago. We paused a lot of employee and corporate travel and took advantage of zoom calls. People are searching more franchisees out through websites to find opportunities, and our brand development has adjusted to fit those needs.

1851: Can you tell me more about your Canadian operations? What developments are there for the brand in Canada?

Watters: DQ in Canada traditionally operates two types of locations: food and treat. Over the past five years, our focus in Canada has been more on our Grill & Chill restaurants, but we’re finding that a lot of markets have demand for our treat locations too. For us, our success is simple – we’ve got great tasting food, and our treats are iconic. DQ has always been looked at as a reward and celebration for people, and we’ve been able to create a fitting experience across 7,600 locations globally. 

1851: What challenges, if any, has Dairy Queen faced developing in Canada?

Watters: Our Grill & Chill locations fit into the competitive burger category, so plenty of brands are competing in that same type of real estate. With us focusing more on these restaurants, there are parts of Canada that have just started to enjoy those services at new locations. It could be a challenge for our burger services to quickly stand out, but we’ve had a successful model in the U.S. that has laid the groundwork.

1851: What do you see for the future of the QSR space, both in Canada and in the U.S.?

Watters: I believe the future lies in technology and convenience. People have developed an appreciation for both in a new landscape, and QSR brands that will meet the needs of their market will be able to establish a strong consumer following in a changing landscape.

1851: Why is now the time for people to invest with Dairy Queen?

Watters: Our brand is one of the most identifiable out there, and our history has proven that we can remain at the forefront of the industry. Our affiliation with Berkshire Hathaway has been a big motivator for potential investors, and our recent innovation has helped a lot of investors feel good about investing their money with us. We invest heavily in our research and development, and we’re always looking to enhance our menu and provide new flavors to keep customers coming back year after year. It’s a strong investment opportunity for a brand to have foods and treats under one roof. Some of our prospective openings are even ahead of schedule.