For Release: Monday, December 8, 2008
TEXAS DQ: AN ECONOMIC BRIGHT SPOT ON MAIN STREET
BEDFORD, TX – For all the talk of economic fallout on Main Street these days, there is at least one notable exception. Local Texas DQs® have been consistently setting business records for the chain over the past five years. And there’s no sign of a slow-down in sight.
“As a system, Texas DQ® sales have been up more than 55 percent over the past five years.” Larry Newell, president of the Texas Dairy Queen Operator’s Council said.
Newell said Texas DQ® operators have routinely recorded double-digit annual sales increases going all the way back to May of 2003 shortly after hiring The LOOMIS Agency, an award-winning advertising agency based in Dallas. In October 2008, the most recent month for which data is available, Texas store sales were up double digits over the same period last year.
Texas DQ® has consistently outperformed the quick-service restaurant (QSR) industry for that same time period. The QSR industry is tracking at about 3 percent positive sales growth for the year, according to the National Restaurant Association (NRA). Newell said average unit volume for all Texas stores has also increased right along with sales.
“There are a number of factors that likely contribute to the tremendous success of the DQ® brand in Texas,” Newell said.
He said the strong Texas operator base, robust Texas economy, and the well-established Texas Country Foods® products, such as the flagship Hungr-Buster®, are key business drivers for the chain.
Operators like Terry Smith of College Station, Texas, say there is another important factor at work, too.
“People feel like DQ® is a big part of Texas history and local lore,” Smith said. Smith, who operates 37 DQ® stores and is a second-generation operator, said the chain was first established in the state of Texas in 1947. He said the brand enjoys an iconic status across the state and in local communities.
Indeed, the Texas system does its own advertising under the campaign umbrella, “DQ®, That’s What I Like About Texas,” which was created by The Loomis Agency in Dallas. Smith said the chain’s Texas authenticity plays well in the small towns that dot the state’s landscape.
“We’ve always been the place in Texas where people come to visit with friends, catch up on the town news, and share a meal. DQ® is an irreplaceable part of the social fabric of small-town Texas,” he said.
Jane Richardson is another long-time DQ® operator. She and her husband Wade joined the system in 1990 and today own several stores. Richardson said DQs® in Texas are owned and managed by locals who understand their communities and are connected to them in very meaningful ways.
“Many of our operators and their staff volunteer locally, raise money for charities and churches, and support local civic organizations,” she said. “Some of them have even served in official elected positions as a means for giving back and supporting their hometowns. People respect and like that. It separates Texas DQ® from competitors who operate at arm’s length.”
And as the national economy slows and consumer confidence falters, more customers are beginning to shift away from more expensive casual dining chains to QSR options.
Newell said DQ® has benefitted more than its competitors from this because people naturally find comfort in the restaurants and consider them local institutions full of familiar faces, food and treats.
In addition, Newell said chains like DQ® have done a very good job closing the gap in food quality between casual dining restaurants and QSR over the years, so the customer perception is that they can get a great meal for less.
“We serve great-tasting food at DQ® in friendly, familiar hometown restaurants,” he said. “If we can give people a little extra peace of mind during stressful times, we are playing an important community role.”
The DQ® restaurants in Texas are represented by the Texas Dairy Queen Operators’ Council, which includes approximately 200 members who own about 600 restaurants throughout the state. The Council provides guidance and support for the owners in such areas as hot food quality control, marketing and operations.
The LOOMIS Agency is a Dallas-based advertising agency that specilaizes in helping clients generate retail level store traffic. The LOOMIS Agency was founded in 1984, and is listed as a top 10 advertising agency in the Dallas Business Journal Book of Lists.
