Dairy Queen Focuses on Burgers and Fries

Known for its frozen treats, the company is looking to boost its market share by increasing customer trip frequency with more menu items.

May 23, 2013

EDINA, Minn. – Dairy Queen is launching an ad campaign next week that will focus on the company’s burgers, fries and chicken strips, a deliberate effort to build traffic beyond those seeking just an ice cream treat, Advertising Age reports.

The chain will be launching a new tagline, "Fan food. Not fast food," which replaces its previous tagline, "So Good It's RiDQulous.” 

"Our objective is to reconnect emotionally with our consumers," said Barry Westrum, executive vice president of marketing at American Dairy Queen Corp. "Ours is a fierce category, frequency is at a premium, and we really see the opportunity for our business to grow by taking these existing customers that have such strong feelings to get them to come back that much more frequently." 

According to Westrum, 56% of DQ customers are light users, visiting only once per month, yet they represent 29% of total visits. "If we can get light users to visit one time more per month, it would have a significant impact on our business," he said.

DQ is going after customers who frequent Burger King and Wendy’s for meals, but who are likely to visit DQ for dessert.

"What makes DQ so special is all the treats, [but it's] not considered for everyday usage," said Jeff King, CEO at Barkley, the agency creating the new ad campaign. "The genesis behind the tagline was to both enter the consideration set [for meals] and differentiate at the same time. By distinguishing fan food, not fast food, it definitely gets us in the consideration set." 

Dairy Queen has 37.2% U.S. market share of the frozen dessert category, which totaled $2.4 billion last year. At the end of 2012, it had roughly 4,465 locations. Baskin-Robbins is the number two chain in the category, with 2,400 units that generated $509 million in sales last year, for 7.8% market share.

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