Dairy Queen to make Hong Kong comeback with 4 stores. Is it scooping up cheap rents?

Dairy Queen, the 85-year-old ice cream chain, plans to expand its presence in Hong Kong by opening four new stores in the fourth quarter of this year, the company announced on Friday. The chain's flagship store will debut at the One Causeway Bay shopping center on Hong Kong Island in November, followed by three additional locations in Kowloon, the New Territories and the outlying islands before year's end.

The company emphasized that these four stores would strategically cover the entire island, the Kowloon district, the New Territories and the surrounding areas.

This marks Dairy Queen's return to Hong Kong after a brief stint in Causeway Bay back in 1979. The brand is set to introduce a fresh store concept, designed specifically for the Hong Kong market, featuring five product lines, including milkshakes, parfaits and meticulously crafted ice cream cakes. The company highlighted its signature soft-serve dessert, which is thicker than usual thanks to an exclusive full-fat dairy mix and an air overrun of approximately 40 percent, helping to maintain the texture.

According to Edwin Lee Kan-hing, the founder and chief executive of Bridgeway Prime Shop Fund Management, the company's entry into the Hong Kong market coincides with a significant decline in retail rents and shop values. Lee pointed out that commercial rents in key districts have dropped by 60 to 70 percent from their peak levels in 2013 and 2014.

With lower rental costs and a robust tourist spending power, more foreign brands are expected to enter Hong Kong. "It would not be surprising if two or three out of every 10 new outlets eventually close," Lee noted, "but the overall trend will favor newcomers."

Lee also suggested that Dairy Queen's strategy of opening stores across four different parts of the city is a calculated move to gain quick visibility. "The weather is getting hotter and hotter, so more people will eat ice cream, and tourists also enjoy ice cream," Lee explained. "A cup of ice cream costs only a few dozens of dollars."

Furthermore, Lee acknowledged that foreign brands have been closely monitoring Hong Kong's tourist arrivals, which surged to 31.22 million visitors in the first seven months of 2026 - an 11 percent increase year on year. Retail sales in the city grew by 4.5 percent in July compared to the previous year.