Popular ice cream chain shutting down 46 stores across the country

Dairy Queen Faces Closures Across the U.S.

The situation for Dairy Queen in the U.S. is rather troubling.

Since the beginning of 2025, the company has entered a franchising bankruptcy, leading to the shutdown of at least 46 locations nationally. Texas seems to be bearing the brunt of this, with Project Lone Star, the chain’s operator, ousted from the DQ family after it declined to update its restaurants. Specifically, 42 stores in Texas closed just between February and March, leaving local fans of the franchise looking for alternatives. Maybe they’ll try a McFlurry instead.

In Alaska, all three Dairy Queen locations in Anchorage, Wasilla, and Palmer shut their doors in early July, reducing the state’s Blizzard options to just one remaining store in Soldotna. That city, quite small with a population under 5,000, has become the last bastion for DQ soft-serve enthusiasts, surrounded by vast protected lands teeming with wildlife.

Meanwhile, a Dairy Queen in Great Falls, Montana, which had been serving customers for nearly four decades, also decided to close its doors on June 13. But owner Steve Galloway doesn’t seem too down about it; he’s transitioning to a new fast-casual Mediterranean restaurant instead. A bit of a pivot, right?

The closures are occurring as many customers are feeling the crunch at drive-thru windows nationwide. Reports indicate an increase of 3.5% in dining out costs over the last year, making folks reconsider indulging in items like the Peanut Buster Parfait.

Dairy Queen, known for helping popularize soft-serve ice cream since its Illinois inception in 1940, was acquired by Berkshire Hathaway in 1998. The chain now operates around 7,800 locations across more than 20 countries. While it’s losing some key spots on the mainland, plans are underway for expansion into Puerto Rico, with 20 new “grill and chill” places slated for the island.

To attract customers, Dairy Queen is rolling out new Blizzard flavors, like Strawberry Mango Mochi and Mexican Hot Chocolate. They’ve also introduced co-branded merchandise including lip balms and pajamas inspired by their breakfast offerings. A partnership with the Savannah Bananas baseball team aims to bring energy and fun to stadiums, featuring free shakes and other promotions. Social media is buzzing over their “Pup Cup,” a complimentary frozen treat for dogs with a purchase.

For anyone still able to visit a Dairy Queen, there’s a promotion for DQ Rewards members offering a free Dilly Bar from July 13th to 19th in celebration of National Ice Cream Day on July 19th.