Making hamburgers has become DQ’s latest goal. On July 11, DQ China’s first hamburger restaurant, DQ BLIZZARD & BURGERS (hereinafter referred to as “DQ Hamburgers”), officially opened in Shanghai. From the scene, the words “Imported Grain-Fed Angus Beef”, “Brioche Butter Bread”, “Butter Lettuce” and the pictures of hamburgers on the billboard outside the store are particularly eye-catching.

In terms of products, the store not only sells hamburgers, fried chicken, and snacks, but also offers ice cream and milkshakes currently sold in other DQ ice cream shops, as well as peripheral products such as mugs, baseball caps, and T-shirts. In terms of price, the DQ burger applet shows that the beef burgers sold in the store start at 35 yuan, and the chicken burgers are priced at 29 yuan.

Beijing Business Daily reporter learned that the DQ brand is currently operated by two franchise companies in China, Hexing Group and CFB Group. The above-mentioned DQ burger is opened by CFB Group and is a new type of DQ “ice cream + burger” store.

Regarding the future development plan of DQ burgers, the relevant person in charge said that regular DQ stores will not increase related meals, but will continue to open DQ burgers. According to Xu Weilun, CEO of CFB Group, DQ burgers + ice cream shops will be positioned as flagship stores of the DQ brand in various cities in the future development map of CFB, adopting a rational and profitable store expansion model, with the city’s high-traffic and highly representative Class A properties as the focus of site selection. At present, CFB’s DQ ice cream stores have covered more than 1,300 stores in about 300 cities from first-tier to fifth-tier cities, and continue to grow rapidly at a rate of 250-300 new stores each year. In the third quarter of 2024, 3 DQ burgers + ice cream stores will be opened in Shanghai. After adjusting the best business model, it will be expanded to other first-tier and super second-tier cities in 2025. The group plans to expand the “burger + ice cream” DQ stores to 100 by 2030.

According to reports, in 1992, DQ ice cream quickly gained popularity in the Chinese market with its “inverted cup without spilling” Blizzard product. Currently, CFB Group, which owns or manages DQ, Papa John’s, Yuepu Restaurant and Jinyuju, has opened 1,300 DQ ice cream stores in China. However, globally, the DQ brand does not only sell ice cream, but also a hamburger and ice cream fusion restaurant, with more than 4,000 stores selling hamburgers in North America and the Middle East.

Zhan Junhao, founder of Fujian Huace Brand Positioning Consulting, said that as a representative of Western fast food, hamburgers have a wide range of consumer groups and stable market demand, and with the diversification of consumer demand, the hamburger market still has a large room for growth. From DQ’s own perspective, the brand is seeking new growth points, further enriching its product line by launching hamburgers and other products, and improving its brand competitiveness and market share.

Indeed, the potential of the Western fast food industry cannot be underestimated. The “China Western Fast Food Industry Market Analysis and Forecast Research Report” (hereinafter referred to as the “Report”) released by Zhiyanzhan shows that the market size of China’s Western fast food industry was 270.218 billion yuan in 2019, and the market size of China’s Western fast food industry in the first quarter of 2024 was 99.9 billion yuan, a year-on-year increase of 8.35%. According to Zhiyanzhan’s forecast, the growth rate of the market size of China’s Western fast food industry will be 6%-9% from 2024 to 2030; in 2030, the market size of China’s Western fast food industry will be 615.173 billion yuan, a year-on-year increase of 6.79%.

However, the Western fast food market is highly competitive, and there are many players who have been working in the market for many years. It is not easy to gain a firm foothold. The report mentioned that the Western fast food brand matrix is ​​clearly divided into two camps: one is composed of international brands such as KFC, McDonald’s, and Burger King. They usually target the mid-to-high-end market, with a single product price range of 25-35 yuan, and prefer to be located in first-tier and new first-tier cities. With their brand influence and mature operating model, they have effectively attracted a large number of consumers; on the other hand, local forces represented by Tustin and Wallace use a more people-friendly pricing strategy (about 15-25 yuan) to quickly expand in low-tier cities and a wider range of sinking markets, achieving scale expansion.

In addition, many chain restaurants have begun to try to make hamburgers, such as Pizza Hut’s new “pizza burger”, Weijia Liangpi’s hamburger shop, and Xibei Group’s Jia Guolong Chinese Burger. What are the chances of DQ’s entry into the market? Zhan Junhao believes that consumer base, operational capabilities, and supply chain are all advantages of DQ hamburgers. However, the hamburger market is highly competitive, and DQ has limited experience in operating Western fast food in China. It needs to continue to learn and improve in order to improve market recognition. READ FULL STORY HERE>>>CLICK HERE TO CONTINUE READING>>>

As DQ mentioned above, “the store expansion model that pursues profitability”, constantly adjusting the profit model is the key to DQ Burger’s expansion. Zhan Junhao pointed out that DQ Burger must first clarify its own positioning, make more accurate decisions in product development, pricing strategy, etc., and carry out differentiated layout through continuous innovation and improvement of product quality to create a unique product experience. At the same time, DQ Burger should fully consider factors such as traffic flow, consumer groups, and competitive situation in site selection. In addition, DQ Burger needs to formulate a reasonable profit model and cost control strategy, continuously optimize operating processes and reduce costs, and improve store efficiency and profitability.

Beijing Business Daily reporter Zhang Tianyuan

(Source: Beijing Business Daily)

Source: Beijing Business Daily

Article author: Zhang Tianyuan

Original title: DQ opens its first hamburger restaurant and enters a new market of Western fast food

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2024-07-11 11:14:15
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