Dairy Queen mulls donut rollout to strengthen sales; final decision on chain's donut deal expected by autumn

Nation's Restaurant News, July 14, 1986 by Paul Frumkin

Dairy Queen mulls donut rollout to strengthen sales

Final decision on chain's donut deal expected by autumn

International Dairy Queen, the 4,816-unit chain known largely for ice cream products, is considering the addition of donuts to strengthen morning sales.

The final decision, which could be reached as early as next fall, will be based on the results of a year-long joint-development agreement between Dairy Queen and Mister Donut in which the menus and systems of both chains have being combined in one concept.

"We should complete the evaluation of the test by October,' said Harris Cooper, president and chief executive of Dairy Queen. "But right now, things are going well, and all indications look positive. "Our original concept of improving the morning daypart with donuts looks to be on-target.'

Cooper noted that Dairy Queen would most likely add the donut line through one of three methods: either by developing its own products and systems, entering into a joint venture with an existing donut chain or by acquiring an existing donut chain.

"In any case, we would be talking with Mister Donut first,' Cooper said.

The Dairy Queen-Mister Donut concept has been in test since Nov. 1985 in the Minneapolis and Chicago areas. Dairy Queen has two stores in operation and three under construction, while Mister Donut has two in operation

Photo: Dairy Queen, the ice cream products chain is considering the addition of donuts to strengthen morning sales. and another under construction.