Global leading quick-service (QSR) ice cream chain Dairy Queen (DQ) plans to open 600 new restaurants in China by 2030 after making a deal with private equity firm FountainVest Partners to further penetrate the frozen-treat sector in the country.
FountainVest will begin the expansion by opening 100 DQ restaurants this year with its recent acquisition of CFB Group, a franchise ownership group in China with more than 900 DQ restaurants. There are currently more than 1,100 DQ restaurants in China.
Jean Champagne, Chief Operating Officer of US-based International Dairy Queen said, “China remains an important growth market to us and this expansion with FountainVest provides an opportunity to widen our footprint in one of the fastest-growing countries.”
DQ offers several unique-to-China foods and treat offerings to capture Chinese consumer preferences. China is among DQ’s top 3 markets globally along with the US and Canada.
Andrew Huang, Managing Director at FountainVest Partners said, “The market for frozen treats is booming in China and we predict the industry will continue a rapid growth trajectory in the next 10 years.”
DQ plans to open smaller-sized stores ranging from 15-30 sq.metres in lower-tier cities, serving only the brand’s core products.
China has become the world’s largest ice cream market. According to a report released by Zero Power Intelligence Group, the ice cream market reached Rmb 147 billion (US$22.4 billion) in 2020. DQ is the leading brand/player followed by Haagen-Dazs and Baskin Robbins, according to Euromonitor International.
