Why is Dairy Queen so expensive? (11 reasons)
Dairy Queen is a popular spot for those looking for a refreshing ice cream or a light lunch. However, you might arrive at Dairy Queen expecting to pay a fee, only to find your food is much more expensive than you thought.
What is the reason for the high price of Dairy Queen? If you want to know, read on to learn about my findings!
Why is the 2022 Dairy Queen so expensive?
Dairy Queen’s menu prices have increased due to several possible factors in 2022. Dairy Queen, for example, prides itself on its high-quality ingredients. Now that food is more expensive to buy and ship, it costs more to produce each Dairy Queen. In addition, production of commodities such as dairy and beef is declining.
This article explains in detail why the Dairy Queen has become so expensive, and if you want to know the answer, stick with it!
1. Multi-State Raises the Minimum Wage
Dairy Queen stores are likely to spend more to retain employees due to higher minimum wages in many U.S. states.
As more money goes into employee salaries, one way companies can offset expenses is by raising the prices of their items.
2. Dairy Queen uses quality ingredients in its meals
Dairy Queen says the ingredients used in its menu items are always of high quality and carefully selected.
For example, DQ uses 100% chicken tenderloin in dishes such as chicken strip baskets or chicken sandwiches.
Ensuring quality ingredients means restaurants may have to pay more for said ingredients, especially now that restaurants are generally of a higher standard.
If Dairy Queen spends extra money on ingredients, the company must find ways to balance the spending, such as raising prices.
3. Blizzards are made with added ingredients, not seasonings
At some restaurants, you can buy shakes made with simple bases and strictly artificial flavorings, which are usually pretty cheap.
However, Dairy Queen’s popular Blizzard Treats are filled with actual candy, chocolate bars, brownies, cookies, and more.
You may have noticed Blizzard’s price hike. Keep in mind that they may cost more to produce than you expect.
4. Dairy Queen uses real milk and sugar in its soft serve
Dairy Queen’s famous soft serve ice cream is famous for a reason. It’s sweet and creamy and pairs perfectly with chocolate fudge.
To make DQ soft serve, the company uses “healthy milk from carefully selected dairy products.”
Plus, Dairy Queen uses real sugar, not just corn syrup or artificial substitutes. These ingredients will cost slightly more than artificial ingredients.
5. COVID-19 disrupts restaurant traffic
Because of the COVID-19 pandemic, many people are going to fast food restaurants much less often. The drop in traffic has not yet fully recovered.
Because this is a widespread problem, some restaurants, such as Dairy Queen, have raised prices to make up for lost revenue due to a lack of customers.
This is a tricky situation for many restaurants because they can’t raise their prices too high or fewer people will come — it’s a fine line.
6. Buying and shipping supplies is now more expensive
Supply chain issues that have affected global trade and economies for several years still affect restaurants like Dairy Queen.
Food and supplies are harder to come by, which often results in higher expenses when trying to supply restaurants with the necessary ingredients.
When the cost of ingredients goes up, so do menu prices.
7. High gas prices reduce foot traffic at fast food restaurants
Another factor that is keeping many people away from Dairy Queen and other restaurants is the sharp rise in fuel prices in many places.
Restaurants suffer additional traffic losses as many people drive less to save on gas.
This means they make less money and the funds must be accounted for in some way to cover the losses.
Income issues such as these could lead to higher prices in places like Dairy Queen.
8. Average dairy prices are rising
Milk prices in 2022 are expected to be 34% higher than in 2021, according to a USDA report.
This is due to a decline in dairy production. Rising dairy prices will no doubt affect Dairy Queen and other chains, and could lead to higher menu prices.
9. The average price of beef is rising
Additionally, the USDA’s WASDE report states that beef prices are expected to be $17 higher than the 2021 average.
That’s a big deal for a fast-food chain that sells hamburgers as a large part of its menu.
Additionally, Dairy Queen uses 100% beef with no additives or fillers. Since all burger patties rely on meat only, and beef prices are rising, this could lead to higher prices.
10. A reduced workforce may require a pay rise
Many businesses are desperate for more staff due to a national labor shortage.
In some cases, this has resulted in higher starting salaries and more raises for existing employees.
Desperate measures by Dairy Queen franchisees to keep restaurants open could lead to higher menu prices.
11. Dairy Queen uses soybean oil instead of canola
Canola oil is the cheapest and most common choice for frying food in restaurants. Dairy Queen exclusively uses soybean oil instead, which can be more expensive.
Also, soybean prices will increase in 2022, according to the WASDE report. This could affect higher soybean oil costs.
Because DQ relies so heavily on items like chips, onion rings, and chicken strips, the higher cost of frying oil may result in higher prices at Dairy Queen compared to other food chains.
To learn more, you can also read our post on Dairy Queen’s dress code, whether Dairy Queen accepts EBT, and whether Dairy Queen offers it.
in conclusion
Similar to many restaurants over the past few years, Dairy Queen’s menu prices have risen. Companies must carefully balance prices to ensure they stay in business while customers are still willing to pay.
Supply chain issues, traffic restrictions, food shortages and other factors have all contributed to higher prices at fast food chains like Dairy Queen.
