Dairy Queen Franchisees Close More Than 40 Stores While Chain Operates Over 7,800 Locations

The Independent reported that Dairy Queen franchisees have closed more than 40 stores in less than two years. Most of the closures occurred in Texas. An unnamed franchise owner closed three locations in Alaska last week.

The restaurants in Anchorage, Wasilla and Palmer shut down, leaving one Dairy Queen in the state at Soldotna. Pete Ischi, who owns the Soldotna location, said freight costs raise expenses compared with states that have nearby distributors. A Dairy Queen in Great Falls, Montana, closed last month.

Steve Galloway, who owned the restaurant for nearly 40 years, said the site will become a Mediterranean restaurant called Zersty Eatz. Two Dairy Queen locations remain open in Great Falls. Project Lone Star closed 25 Dairy Queen restaurants in Texas in February 2025 and another 12 the following month.

Court documents showed Dairy Queen warned the franchisee that it would end the agreements unless the locations were remodeled. The first Dairy Queen opened in Joliet, Illinois, in 1940. The chain now operates more than 7,800 restaurants in more than 20 countries.