Dairy Queen chief executive Troy Bader said Australia was a logical market for expansion, but that more work needed to be done on the cost of logistics and consumer tastes. “Certainly, Australia is one of the markets that we think there’s a big opportunity there, we need to understand the opportunity, though,” Mr Bader said.
“I have not had the privilege of going to Australia yet, but I am absolutely looking forward to it, and it’s probably not going to be too far in the future.”
Berkshire Hathaway, founded by investor Warren Buffett and Charlie Munger, has owned Dairy Queen for 26 years. It has demonstrated strong sales with three straight record years.
“Our total worldwide sales are north of $US5.7 billion, and we have 7300 restaurants across the country,” Mr Bader said.
The company, which serves both hot and cold food, boasts the caramel apple pie blizzard as its No.1 bestseller, has already expanded into China and South-East Asia.
Mr Bader would be cautious about entering a new market such as Australia.
“Anytime you go into a new region, we have to look at supply chain challenges, you have got to look at consumer affinity for the brand,” he said. “We want to be looking at whether or not we can extend or be able to leverage other supply chains and vendors in those markets. And then also saying which products we would want to be unique to Australia?
“Australia is a big country to move everything around, even within your cities. You have to make sure that it’s practical for the operators, which means that it’s going to be able to be offered to the consumer at a price that they appreciate.”
Mr Bader also said he would be careful about which franchise partner he would choose in Australia, but was open to private equity-owned operators, some of which already have agreements with Dairy Queen.
“I want to know the private equity. I want to know the partners, I want to know their passion, I want to know the commitment for the brand,” Mr Bader said.
In Australia, well-known ice-cream brands have previously been in private equity hands.
Pacific Equity Partners, Australia’s largest private equity firm, sold Peters Ice Cream in 2014 with its portfolio of household name ice-creams including Drumstick, Connoisseur, Peters Original and Maxibon.
