Dairy Queen is cutting margins on its supply business, which is hurting the associations, he contends. Mooty said it is the franchise-owner associations, which compete with the corporation to supply the restaurants, that are stirring up trouble. Dairy Queen / Orange Julius is located on the upper level in the Food Court. "And it is not forcing somebody to go to another concept."
"It is not making somebody spend hundreds of thousands," he argues. The required modernization should be no surprise to franchise owners because it's standard in most of their contracts, Mooty says. But Mooty says Dairy Queen has capped the required investment at $75,0, $85,000 next year and $95,000 in 2010. Dairy Queen does require about 70 percent of franchises to modernize restaurants periodically. Moreover, Mooty maintains no one is being forced to do anything. Traditionally, Dairy Queen's have been small restaurants, often with just a few tables or even just window service. The Blizzard is the main brand of Dairy Queen. Outlets that sell only Blizzards, Dilly Bars and desserts would combine with the Orange Julius beverage chain to become a DQ/Orange Julius Treat Center. Other stores associated with Dairy Queen are Orange Julius and Karmelkorn Shoppes. DQ Grill & Chill establishments would sell meals and desserts, and would expand to include limited table service, among other things.
Franchise owners balked at the expense, which McDonald's estimated at up to $100,000 per store.ĭairy Queen's plans center on two relatively new restaurants lines. late last year mixed it up with franchise owners over a requirement to offer lattes and cappuccinos. It is the second time in recent months that a major restaurant franchise has faced rebellion in its ranks. "What you're hearing is the minority that really are saying, 'I really don't have any desire to evolve and rejuvenate,'" Mooty says. But Dairy Queen Chief Executive Chuck Mooty says the company isn't strong-arming anyone.
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