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I have Tivo but I still stop the fast-forward scan and watch that commercial every time. DQ's creative has to be some of the best out there. But I digress...
I’m a self-admitted business junkie so I’m not sure that this post about Dairy Queen will interest many of you.
To me, it is always interesting to see multiple perspectives – especially the perspective from an end-user customer and obviously experienced investor/analyst. Jeff Matthews, the author of the investment blog "Jeff Matthews Is Not Making This Up" did an in-depth analysis of the “whys and what fors” behind Berkshire Hathaway’s (Warren Buffett’s) acquisition of International Dairy Queen (and the reason’s why the current CEO’s dad ((and former largest IDQ shareholder)) likely pushed the sale to Buffett).
He also comments on, from his perspective as an end-user, the poor public perception of the DQ Brand. I think the discussion/analysis will help shed some light on why the situation that DQ management and franchisees find themselves in “is what it is”.
Here are the links to the blog postings:
A college professor once told me that the best way to even attempt to understand a conflict or look to a resolution – whether it is personal, political or especially a business conflict, is to look toward the personalities and backgrounds of the leadership for all the players/entities. Find out their agendas (especially their hidden agendas) and most of all – follow the money.
Google DQ and you will find other articles that will show the history of the DQ dispute and some other interesting anecdotes. Anecdotes such as: The current IDQ CEO’s former boss becoming the leader of the DQ franchisee purchasing cooperative (and vocal critic of current DQ management), and the CEO making public statements when he first took over in 2001 that both support and contradict his current situation and approach to solving the “problems” that have been with the IDQ brand since the ‘60s.
It also shows the cold, hard reality of high finance with regard to treatment and recognition of the “last mile” of the franchise chain (the small, single unit/independent operators). Read and you’ll see where the small guy stacks up inside the overall power equation of investor, franchisor, regional/master developers, and large multi-unit franchisees.