86-year-old nationwide ice cream chain closes 46 locations
The ice cream shop sector has not escaped the financial distress that the overall restaurant industry has faced over the last year.
Several ice cream chains have shut down underperforming locations to reduce losses.
Popular ice cream chain Dairy Queen has closed at least 46 locations across the nation since early 2025, with the most recent closings coming in late June 2026.
Dairy Queen franchisee closes shops
A Dairy Queen franchisee abruptly closed locations in Anchorage, Wasila, and Palmer, Alaska, on June 30 with no reason given, according to Anchorage Daily News. The closures leave one Dairy Queen remaining in the 49th state, which is located in Soldotna, Alaska.
“The franchise owner of the Anchorage, Wasilla, and Palmer locations recently closed them,” an official with the Dairy Queen chain said in the email to the Daily News on Thursday, without providing the owner’s name.
Dairy Queen shuts Montana location
The Alaska Dairy Queen closings occurred just days after a Great Falls, Mont., franchisee closed its restaurant at 1651 Farm Fox Road on June 13, 2026, after operating for 39 years at the location, according to KRTV3.
The former Dairy Queen’s owner Steve Galloway plans to open a Mediterranean cuisine restaurant called Zesty Eatz later in June, featuring gyros, rice bowls, pita bread, hummus, grilled meat, salads, and other items.
“Our goal is to bring something fresh and exciting to Great Falls,” Galloway said. “We want Zesty Eatz to be a place where families, students, and working professionals can enjoy great food, unique drinks, and outstanding customer service in a welcoming atmosphere.”
Dairy Queen forces franchisee to close
In February 2025, a Dairy Queen franchisee shut down 30 locations in Texas over a dispute with the parent company, then closed 12 more in March in the same dispute, according to the Austin American-Statesman.
American Dairy Queen pulled the franchises from franchisee Project Lonestar after it failed to remodel its locations. That meant that those locations could not order supplies from the parent corporation and would have to shut down.
“These closures are related to closures last month by the same franchise owner,” a Dairy Queen spokesperson said of the closings. “The closures are an isolated event, and we refrain from publicly sharing contract terms.”
The dispute prevented Lonestar from selling its franchise locations, which forced it to close the Dairy Queens that it operated.
Minneapolis-based International Dairy Queen Inc., which is the parent company of American Dairy Queen Corporation and Dairy Queen Canada Inc., develops, licenses, and services a system of 7,800 restaurants in 20 countries. The company is a subsidiary of Berkshire Hathaway Inc.
The Dairy Queen franchisees that closed locations did not file for bankruptcy protection.
Other chains filed for bankruptcy
Franchisees of other ice cream chains that closed locations, however, filed for bankruptcy in certain cases.
Freddy’s Frozen Custard & Steakburgers franchisee M&M Custard LLC and 31 affiliates filed for Chapter 11 bankruptcy protection to reorganize their businesses and restructure debts on Nov. 14, 2025, according to KCTV-5.
The Overland Park, Kan.-based debtor filed its petition in the U.S. Bankruptcy Court for the District of Kansas, listing $5.2 million in assets and $27.7 million in liabilities, according to Bondoro.
Despite closings and bankruptcy filings, the ice cream stores industry has grown by 5.8% to $7.4 billion in the five years through 2025, according to IBISWorld. The industry grew by 0.9% in 2025 alone.
Prices for food away from home, however, rose 3.5% in the 12 months ending May 2026, according to the U.S. Bureau of Labor Statistics, forcing many restaurant operators to raise menu prices as consumers became increasingly price-sensitive.
James O’Reilly, a food industry executive with more than 15 years of restaurant marketing experience, told FSR Magazine that middle- and lower-income households are feeling financial pressure despite broader economic improvements.
“In strong economic environments, price increases have historically been tolerated by restaurant guests. Over the past few years, that’s become far more difficult,” said O’Reilly.
Dairy Queen closings
- Anchorage, Alaska, June 30, 2026.
- Wasilla, Alaska, June 30, 2026.
- Palmer, Alaska, June 30, 2026. Source: Anchorage Daily News.
- Great Falls, Mont., June 13, 2026. Source: KRTV 3.
- 42 locations, Texas, February-March 2026. Source: Austin American-Statesman.
Related: Popular pizza chain franchisee files Chapter 11 bankruptcy
