Dairy Queen looks for 80 Louisiana locations; five in Baton Rouge, 15 in New Orleans
Dairy Queen plans to add 70 to 80 new Louisiana locations over the next 10 years, with up to five in the Baton Rouge area and more than 15 in New Orleans, said International Dairy Queen Inc. Vice President of Franchise Development Jim Kerr.
“We have about a dozen targeted markets throughout the United States. Louisiana is one of the primary ones because of the demand for the combination of the food menu and the treat menu items,” Kerr said.
Last week, Dairy Queen said it was looking at 50 new locations for Louisiana. But Kerr already is looking past those estimates.
A lot of the expansion is being driven by high sales figures from the existing Louisiana stores, Kerr said. Sales in the first two years after opening are very strong.
For example, at one point the South Sherwood Forest Boulevard store clocked some of the highest sales numbers in chain history, Kerr said. Louisiana’s demographics match well with the chain’s products, and lots of people here have fond memories of going to the Dairy Queen.
Kerr said Harvey-based Vicari Enterprises LLC holds the franchise for the Baton Rouge area.
Dairy Queen is looking for franchise candidates in the New Orleans and Lafayette areas and elsewhere with the resources to build multiple locations, Kerr said.
The investment for each location ranges from about $800,000 to $1.7 million, according to Dairy Queen. FranchiseDirect.com places the cost per store at $1.1 million to $1.8 million.
Based on those estimates, the Louisiana spending could be anywhere from $56 million to $144 million if the chain reaches its goals.
Kerr said in order to do so, Dairy Queen’s franchise owners will need real estate.
The stores require freestanding buildings of 2,500 to 3,500 square feet, with space for drive-thru service, he said. Dairy Queen is looking for properties similar to those that house Chick-fil-A stores.
“We’re not really into the strip center or end-cap type stuff,” Kerr said.
Dairy Queen is owned by Berkshire Hathaway. There are more than 6,700 stores worldwide, with 36 in Louisiana. Source: http://www.theneworleansadvocate.com/news/15702263-148/dairy-queen-looks-for-80-louisiana-locations-five-in-baton-rouge-15-in-new-orleans