Dairy Queen is a popular fast-food restaurant that is known for its frozen treats.
The Blizzard may be the most commonly ordered menu item, consisting of soft serve ice cream blended with various ingredients such as candy bar pieces or bits of fruit.
The chain also has hot food on the menu, including burgers and chicken strips.
By offering both hot and cold food, the chain has certainly managed to create a unique niche for itself.
Menu items are pricier than many of the other fast-food chains.
While you may have to pay more, you are getting something you can’t find anywhere else.
Understanding the reason for the expensive menu may help you to justify a visit to DQ.
Why Is Dairy Queen So Expensive?
Dairy Queen is going to be more expensive than other fast-food restaurants.
It’s also going to be more expensive than some ice cream shops.
The chain’s menu is expensive for a few reasons.
1. Demand Is High
The demand is high at Dairy Queen because they offer something unique.
It’s not just anywhere where you can go to get frozen dessert along with a burger and fries.
Dairy Queen offers the Blizzard, which is a frozen treat that uses soft serve ice cream along with a combination of other sweet ingredients.
The Blizzard menu has evolved over the years, and throughout the seasons, the options will change.
Many people are eager to try out the new flavor when it comes out, creating significant demand.
The menu is also a bit unique in that it offers frozen cakes.
Ice cream cakes are hard to come by, and Dairy Queen has some fun flavors and designs that people crave when they’re celebrating a birthday, an anniversary, or some other momentous occasion.
Dairy Queen knows that they are different.
They also know that they have a significant amount of demand for their products.
One look at the hundreds of thousands of people following the chain on Twitter will tell you that they’re popular.
By knowing that there is demand, Dairy Queen is able to charge higher prices.
They can seek out a higher profit knowing that there will always be people willing to spend the extra money for something a bit different.
After all, this is a fast-food chain that offers a value meal where you get a dessert, too.
The other popular chains only offer protein, fries, and a drink.
DQ throws in a bit of added excitement with a small soft serve cone or a Dilly Bar.
With deals like that, it’s no surprise that demand for the chain is as high as it is.
2. It’s Not Profitable Year-Round
There’s something important to understand about Dairy Queen.
While they have diversified their menu to include both hot and cold items, the most popular items are the cold and frozen ones.
The moment that it starts to get cold outside, people stop wanting cold and frozen snacks.
Most people are looking to warm themselves up when the temperatures start to drop.
Those who want a Blizzard are still out there, but they are few and far between.
Many of the DQ locations don’t turn a profit all year round.
Instead, they are only profitable approximately nine months out of the year.
The other three months are the winter ones where people just aren’t visiting as frequently.
If they do visit, they’re buying hamburgers and chicken strip baskets, and the profit margins just aren’t as high on those menu items as they are on the Blizzards.
Since the chain knows that people aren’t going to frequent the locations as much in the winter, they compensate by raising their prices.
With higher profit margins on all of the menu items, it allows them to go three months a year without the big profits.
It’s the only way that they can stay in business.
No one wants to say goodbye to Blizzards forever.
Further, no one really wants to add to their frigid winters by eating a bunch of frozen desserts.
Therefore, people will pay the higher prices for nine months knowing that they will forget about the fast-food chain for the other three months of the year.
3. Machines Require Upkeep
There’s a lot going on in your average Dairy Queen location.
Some of the most common pieces of equipment that require upkeep and maintenance include the following:
- Soft-serve machines
- Blenders
- Fryers
The soft-serve machines can seize up if they’re not properly cleaned and maintained.
When this happens, it means that the employees can’t dispense the vanilla or chocolate soft serve that the chain is known for.
If the machines go down, a significant number of menu items cannot be served.
Any time a machine goes down, it’s an emergency.
A technician has to be called to fix the problem, and depending on what is going on, it can be an expensive repair.
The good news is that most of the equipment is maintained because it’s a line item in the budget of every store.
4. Labor Is On The Rise
Labor is always one of the most important aspects of doing business, and Dairy Queen is no different.
Labor is found at the store, district, and corporate levels.
Employees are paid at hourly wages that have to be competitive to what the other fast-food chains are paying.
This means that the average location is paying slightly above minimum wage.
Beyond the hourly wages, there are also benefits.
This includes not only food and meal discounts but also paid holidays and vacations.
Full-time and salaried employees may also get access to 401(k), medical plans, health savings accounts, and an array of other benefits.
The packages offered to employees evolve based on the competitive market.
Restaurant locations will offer more to employees if they feel that it will help to keep employees for longer.
Otherwise, there’s high turnover that can have a negative impact on both customer service and the bottom line.
If you feel as though Dairy Queen is more expensive than it used to be, you’d be correct.
Wages have been on the rise recently.
Locations have to pay more because the minimum wage has been increasing, and in some areas, that rate is as high as $15 per hour.
Just as other restaurants have to raise their prices to account for the higher labor costs, so does Dairy Queen.
The location does try to minimize the costs with fewer employees on the clock, but the labor costs are still out of their control, forcing them to charge more to maintain their desired profit margins.
5. Training Is Comprehensive
If you’ve ever been to a Dairy Queen, you know that they don’t have the same large staffing levels that some of the other fast-food companies have.
In order to keep the costs in line as much as possible, they operate with as few employees as possible.
Since there may only be three or four employees on duty at any given time, every employee has to know how to work the various machines and create the many menu items.
Training is comprehensive so that employees learn the hot and cold aspects.
Additionally, employees have to learn about the DQ level of customer service and how to operate the machines, the cash register, and more.
DQ stands out because of the Blizzard presentation.
A Blizzard can be presented upside down at the request of a customer.
Some employees will do it automatically without being asked.
There’s a lot of faith here that the soft serve is firm enough and that the Blizzard wasn’t overmixed.
Without proper training on how to make a Blizzard, this could end up being a mess.
Dairy Queen likes to try to promote from within.
Supervisors and managers were once standard employees.
There’s a significant amount of training that is provided so that employees know how to handle supervisory aspects of the store.
This includes training employees, filling out reports, and counting register tills.
Periodically, Dairy Queen will have employees go through other training, as well.
Some of this may be related to sexual harassment, diversity, or another “hot” topic.
Other training may be related to new menu items, including new Blizzard flavors.
6. A Large Variety Of Toppings Are Available
One of the ways that DQ stands out is by being different.
They let their customers have what they want.
While other companies often charge for some toppings, DQ lets people have the toppings they want without charging them for each and every item.
A DQ Blizzard is the same regardless of whether you want one topping added to the mix or four.
It allows you to get creative, especially if you want to step away from the standard menu that is offered.
Dairy Queen remains focused on quality because they use name-brand toppings.
It’s not uncommon for them to advertise a new product using Oreo or Nestle Tollhouse cookies.
They’ll use name-brand candy bar chunks, too.
The name-brand toppings come at a higher cost than using generic knockoffs.
However, people demand quality when they are buying from DQ.
They know that they’re paying good money, so they want to see the quality in the brands that are being advertised.
It’s not just the variety of the toppings but also the quantity.
No one will ever complain that there weren’t enough peanuts or not enough cookie dough inside of their Blizzards.
A heavy-handed portion is commonly found at the chain.
By maintaining a large variety of toppings, it means that there’s a higher cost for inventory.
DQ locations know that they have to maintain all of the toppings required to fulfill the menu.
The Blizzards feature 11 standard recipes, and more are added throughout the year as seasonal specials.
This means that the number of toppings can start to add up.
There is also the cost of maintaining all of the ingredients, even if one isn’t very popular.
If a product is brought in and doesn’t sell well, it leads to waste.
However, the menu is the same across all DQ locations.
It means that some DQ locations may have higher waste than others.
To compensate for waste without it having a negative impact on the bottom line, the prices are higher.
7. Food Is Quality
There’s a lot going on inside of a Dairy Queen.
There’s only so much space to store it all.
Still, the company provides quality ingredients every step of the way.
The burgers are 100% beef.
The buns are locally sourced.
The produce is fresh.
It makes for good burgers.
As for the chicken strip baskets, there are a few things going on including white gravy and toast.
It is a way to stay unique, but it also means that more things must be purchased.
People can go anywhere for burgers and chicken strips.
Therefore, DQ has to compete, and they do so by standing out with their unique flavors and the way in which they offer their food.
The quality has to be in place regardless of how popular items are.
If there’s food waste, there’s a higher cost.
It takes away from the profit margins.
By charging more, they can ensure the quality is always prevalent without having to worry about whether some food was thrown away due to waste or spoilage.
8. Menu Is Unique
Dairy Queen lives by the motto of “happy tastes good.”
They want to make everyone happy, so they feature a menu that includes hot foods served up for lunch and dinner as well as plenty of frozen desserts and celebratory ice cream cakes.
There are plenty of things that are on the DQ menu that you won’t see on just any fast-food menu:
- Chili cheese dog
- Onion rings
- Pretzel sticks
- Cheese curds
When such unique items are on the menu, it means that people have no choice but to visit DQ when they desire such items.
Knowing that DQ has cornered the market means that they can charge higher prices.
People will pay for the convenience of being able to buy such things from a drive-thru restaurant.
Although such items are offered on the menu, this does not mean that they are the most ordered items.
Dairy Queen cannot order in bulk to take advantage of deep discounts.
As such, they have to pay a bit more than if they were to buy in larger quantities.
Having unique items on the menu does come at a cost for the chain as well as for the customer.
Dairy Queen may have a diverse menu, but they also know that they have to be competitive.
This means that they have to spend money on not only marketing but also research and development.
There are individuals employed by corporate headquarters that focus on the latest food trends.
They take the time to create new menu items (and Blizzard flavors) to test them.
The ones that test well in various markets are added to the menu.
The marketing must also be continuous so that people learn about the reasons to pay just a bit more to take advantage of the unique menu that DQ offers.
Every time you see a Facebook ad or a commercial or a billboard, you know that marketing dollars are being used, and that is all factored into the high prices of the menu items that you see across the chain.
9. More Technology Is Being Added To Stores
Dairy Queen has to be competitive and offers a high level of customer service.
The way that they do this is by using technology.
Various tech investments have been made at the store level as well as within the corporate headquarters.
Some tech involves the website as well as the app.
It makes it easy for people to interact with DQ and explore their menu before arriving at the store.
There are also employees responsible for maintaining the DQ social media presence on such platforms as Facebook and Twitter.
Some tech is focused on providing the fastest possible service to customers.
This starts at the drive-thru and ends with the way employees can prepare the food.
Fryers are advanced enough to be programmed based on what food is being cooked.
Blenders are advanced enough to turn off after blending for a certain amount of time.
Some locations even allow customers to place their own orders using touch screens.
As new technology comes out, DQ has to decide whether it’s worth the investment or not.
Often, if it gives them a competitive edge, they’ll spend the money and require it to be purchased at all of their locations.
You may not realize it, but you’re paying for that technology.
You see it as convenience and premium customer service, though.
You pay more because of what you get at DQ, even if the tech is working behind the scenes to offer you a quality experience.
10. Locations Are Few And Far Between
Most cities don’t have a lot of Dairy Queens to choose from.
There are only approximately 4,000 stores located across the United States.
There’s a lot of brand loyalty, and people will drive to a Dairy Queen in order to enjoy a Blizzard or one of the other favorite menu items.
With the few locations it has in comparison to so many of the other fast-food chains, Dairy Queen has to focus on profits.
The higher prices allow the company to make a profit even though they don’t have tens of thousands of locations.
Fewer locations also mean that supply and demand principles kick in.
There’s low supply and high demand, which means that DQ can have higher-than-average menu prices while still ensuring that customers will pay for the products.
Is Pricing The Same Everywhere?
Blizzards and other menu items at Dairy Queen are the same across the U.S.
Whether you buy your soft serve treat on one coast or another, you’re paying the same price.
The only reason that the price may appear different is a difference in sales tax from area to area.
Now, in other parts of the world, Dairy Queen prices can vary dramatically.
One of the reasons for that is the availability of ingredients.
Additionally, there are food requirements and rules regarding dairy and other ingredients used to create DQ treats.
How to Save At Dairy Queen
There are plenty of ways to save money at Dairy Queen by getting creative.
One of the easiest options is to join the DQ Blizzard Fan Club.
By signing up via email, it’s a chance to receive news of upcoming flavors as well as receive periodic promotions.
Coupons are launched regularly, too.
Often, these are a buy one/get one kind of deal.
It allows you to buy one menu item and get the second one for free.
These coupons can be found in local newspapers as well as the deals that are sent by mail.
Other coupons and promotions can be found in coupon books, school fundraising cards, and local deal sites.
NEXT: Why Is Wendy’s So Expensive? (Top 10 Reasons)
Allen N Wollscheidt says
Like ALL others, DQ charges “whatever the traffic will bear”, just like a railroad does.
AJ says
It’s not complicated to put candy, cookies, etc into ice cream. It’s called DIY.