More than 40 Dairy Queen restaurants have closed across the United States in less than two years, reducing the chain’s presence in several communities and leaving Alaska with only one remaining location.
Texas accounts for most of the shutdowns, while the latest closures affected customers in Anchorage, Wasilla and Palmer. A separate Dairy Queen in Great Falls, Montana, also recently ended a run that had lasted nearly four decades.
Despite the number of restaurants involved, the closures do not appear to represent a coordinated nationwide retreat by Dairy Queen. The affected stores were operated by franchise owners, and the available information points to different circumstances in Texas, Alaska and Montana.
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Dairy Queen restaurants in Anchorage, Wasilla and Palmer have closed, leaving the independently operated Soldotna restaurant as the chain’s only remaining location in Alaska.
Texas franchise dispute produced the largest wave
The majority of the closures were linked to Project Lone Star, a franchise operator responsible for a large group of Dairy Queen restaurants in Texas. Twenty-five locations closed in February 2025, followed by another 12 in March.
That means 37 of the more than 40 reported shutdowns were associated with one franchise organization. The concentration is important because it separates the Texas situation from a broader nationwide pattern involving dozens of unrelated owners.
Court documents reported by local media indicated that Dairy Queen had warned Project Lone Star that its franchise rights could be terminated if required remodeling work was not completed at the restaurants.
Dairy Queen described those closures as an isolated event but did not disclose additional details about its private agreements with the franchise owner. The dispute shows how renovation requirements can become a major expense for an operator managing numerous aging properties at the same time.
Franchise restaurants may share a national name, menu and marketing system, but individual owners are often responsible for staffing, property expenses, maintenance and required upgrades. When one large operator encounters financial or contractual difficulties, many restaurants can close in a relatively short period.
Alaska’s remaining store faces a costly supply market
The closure of the Anchorage, Wasilla and Palmer restaurants has dramatically reduced Dairy Queen’s footprint in Alaska. Customers seeking the chain’s Blizzard treats and fast-food menu now have only the Soldotna location available within the state.
A specific explanation for the three closures has not been publicly confirmed. However, Soldotna franchise owner Pete Ischi has described the extra cost involved in bringing restaurant supplies into Alaska.
Alaska operators must pay freight charges to transport food, packaging and other products over long distances. Restaurants in states such as Oregon and Washington may be located much closer to distributors, allowing them to receive supplies with lower transportation costs.
Those expenses can affect menu pricing, inventory decisions and operating margins. Remote geography may also make equipment repairs and replacement deliveries more complicated than they would be for a franchise located near a major distribution network.
Freight costs alone do not establish why the three Alaska restaurants closed, but they help explain why maintaining a franchise in the state can be more difficult than operating an identical restaurant elsewhere in the country.
Great Falls restaurant will become a new concept
Montana experienced a separate closure when a Dairy Queen in Great Falls ended operations. Steve Galloway, who had owned the restaurant for nearly 40 years, plans to replace it with a Mediterranean restaurant called Zersty Eatz.
Galloway said the aim was to introduce something fresh and exciting to the city. Two other Dairy Queen restaurants remain in Great Falls, meaning the chain has not completely left the local market.
This closure differs from the Texas situation because it involves a longtime owner choosing a different use for the restaurant rather than a large franchise dispute. It is another example of how the same national brand can lose locations for unrelated local reasons.
Franchise pressures are affecting more than one restaurant chain
The challenges facing Dairy Queen franchisees reflect broader pressures across the restaurant industry. Higher labor costs, inflation, rising borrowing expenses and expensive remodeling requirements have made it harder for some operators to keep every location profitable, particularly when managing dozens of restaurants under a single franchise agreement.
Similar financial pressures recently emerged at a major Carl’s Jr. franchisee that filed for bankruptcy while planning restaurant closures and the sale of California locations. The case showed how problems at a franchise operator can affect multiple restaurants without proving that the national brand itself is failing.
A comparable pattern was seen when a Popeyes franchisee entered bankruptcy proceedings affecting more than 130 restaurants. In both cases, the financial issues were tied to the franchise business rather than the restaurant chain as a whole.
Restaurant operators are responsible for costs that can rise faster than customer spending, including wages, utilities, rent, insurance, borrowing expenses and store renovations. A business managing multiple outlets may be especially vulnerable when several restaurants require investment at once.
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Dairy Queen remains a global restaurant business
Dairy Queen opened its first restaurant in Joliet, Illinois, in 1940. The company later expanded from its original soft-serve offering into a broader menu that includes frozen desserts, burgers, chicken and other fast-food products.
According to Dairy Queen’s official company information, the system includes more than 7,800 restaurants in over 20 countries. International Dairy Queen is owned by Berkshire Hathaway.
The recent closures are significant for workers and customers in the affected communities, especially in Alaska, where three shutdowns removed most of the state’s Dairy Queen presence. However, the available details indicate a collection of franchise-level events rather than evidence that Dairy Queen is closing nationwide or going out of business.
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