The Timeline of a Legacy Brand: How the Dairy Queen® System Has Grown Through the Franchise Model Since the 1940s

For more than 75 years, the Dairy Queen* system has built a successful brand around the nostalgic feeling it gives its fans, the “smiles and stories” that it provokes and the way that it evolves ahead of the curve in the restaurant industry.

As one of the first brands in the United States to grow through the franchise model, the DQ brand has been a leader in adapting to changes in its industry in order to perpetuate development.

Despite changes that arise, the DQ system prides itself on maintaining a loyal consumer base as well as loyal employees. Currently the Vice President Design, Architecture & Construction, Eric Lavanger began working with the brand after graduating from college in the mid-1970s and has built a career with the brand over the last 39 years.

Lavanger has seen the DQ experience change firsthand and knows how it has remained nimble and innovative through various adjustments. In fact, Lavanger held the position of VP of Franchise Development in the late 1990s when the brand plotted its next move through “Project Octane,” which resulted in the booming DQ Grill & Chill® concept.

“Historically, our franchisees were opening locations and saying that they made a good living during the warmer spring and summer months but wanted to add more food items to the predominately treat menu to improve their return on investment,” Lavanger said. “A number of stores that had been offering food under the Brazier® concept were really successful, but a strategic question for the brand was ‘Is the DQ system a highly regarded treat concept that also offers food or is it a food concept that has really great treats?’” 

A group of franchisee leaders, corporate employees and an outside design firm worked together to reevaluate the DQ restaurant’s design, layout, menu and service methodology. The end goal was to answer the question: What should a DQ restaurant that offers food look like, taste like and act like?

“The DQ Grill & Chill® restaurant design model had to walk a fine line that really dramatically enhanced the idea of food but didn’t diminish our longstanding treat heritage,” Lavanger said.

The result of the “Project Octane” initiative was the current DQ Grill & Chill restaurant model, which is a one-story, 2,612-square-feet building with capacity for 72 seats. The restaurant interior brings an innovative dimension to the quick-serve restaurant environment. Highlighted by separate “grill” and “chill” preparation areas, the restaurant features comfortable booths and other types of seating, warm lighting, music and an overall inviting restaurant atmosphere. In addition, the food menu was enhanced and a new dine-in service methodology was developed.

“In a legacy brand like the Dairy Queen system, creating the DQ Grill & Chill concept meant shaking up the existing model and having the guts to start with a blank piece of paper,” Lavanger said. 

As the concept grew in popularity in the early 2000s, other brands in the QSR and fast casual segments followed suit and began redesigning restaurants to provide a more inviting atmosphere for enjoying meals.

And the positive impact of the redesign shows in the numbers.

In the U.S., there are currently more than 1,560 DQ Grill & Chill restaurants in 46 states. American Dairy Corporation (ADQ) opened 84 locations in 2015 and converted close to 200 existing locations into DQ Grill & Chill models in 2015. With a target of adding 20 to 25 new multi-unit franchise groups to the system in 2016, ADQ is laying plans to develop additional DQ Grill & Chill locations in markets such as New England, the Carolinas, California, New Orleans, Houston and Kansas City.

“We were able to reposition ourselves for the future by creating a model that was compelling to our existing franchisees and attractive to potential franchisees,” Lavanger said. “The creation of the DQ Grill & Chill model provided a turning point for us to have a dramatic impact on seasoned operators affiliated with other brands who now see the DQ system as a valuable addition to their portfolios.”