Can a $5 lunch give Dairy Queen some heft?
The ice cream chain is introducing a permanent low-cost lunch menu, aiming to 'steal share' from much bigger rivals.
Dairy Queen is synonymous with summer treats, from soft-serve ice cream to Blizzard frozen desserts.
But the 73-year-old company -- which is owned by Warren Buffett's Berkshire Hathaway (BRK.B) -- wants to lure customers with a "5 Buck Lunch," which it thinks will help it "steal share" from other quick-service restaurants, marketing chief Barry Westrum told Nation's Restaurant News.
The chain started developing the idea last summer and offered a limited-time offer in the fall. The permanent rollout will offer a $5 menu between 11 a.m. to 4 p.m. and provide the choice of a Grillburger with cheese, chicken strips or a chili cheese dog, as well as medium fries, a medium soda and a soft-serve sundae.
Why make the $5 menu a standing offer? Many consumers are still feeling pinched, giving Dairy Queen an opportunity to lure diners away from competitors, Westrum said.
"Even though some might say the recession has improved, the fact is that these improvements just aren’t coming fast enough for consumers," he said. Competitors, which Westrum didn't name, "constantly bewilder consumers with inconsistent value offers," he noted.
Dairy Queen has a long way to go to get to the top of the quick-service industry, however. Based on revenue, it ranked as the 16th-largest fast-food chain in 2011, trailing bigger restaurants such as No. 1 McDonald's (MCD) and Subway, the runner-up, according to QSR magazine.
But with consumers hit with a payroll tax hike this year and as a result shunning pricier sit-down eateries such as Darden Restaurants' (DRI) Red Lobster and Olive Garden, DQ's low-cost lunch might hit the spot.
FYI in western NE our Dairy Queen has better quality food than applebees love it
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The major averages ended the midweek session with slim gains after showing some intraday volatility in reaction to the release of the latest policy directive from the Federal Open Market Committee. The S&P 500 added 0.1%, while the relative strength among small caps sent the Russell 2000 higher by 0.3%.
Equities spent the first half of the session near their flat lines as participants stuck to the sidelines ahead of the FOMC statement, which conveyed no changes to the ... More
More Market News
Fed keeps important 'considerable time' language in reference to short-term interest rates, but dissents and dots leave doubts.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'