Consumers interact with a robot at a Dairy Queen store in Shanghai on Aug 29. TANG YING/GETTY IMAGES
Dairy Queen has surpassed 2,000 stores in China, becoming the first ice cream-focused chain in the country to reach that scale as competition intensifies in a market increasingly shaped by franchising, localized products and lower barriers to expansion.
The milestone, however, is not simply a reflection of store growth. The brand's operator in China says expansion has been accompanied by improving store productivity and profitability, rather than relying solely on adding outlets.
DQ's China network operates under two models. CFB Group runs about 1,610 stores, while another 390 outlets are operated by partners in North China, where CFB does not hold franchise rights. As DQ's largest operator in the country, CFB has been the main driver behind the brand's expansion over the past decade.
