Dairy Queen is shutting down more locations across Texas, leaving loyal fans worried about the future of their favorite frozen treats and comfort food. While restaurant closures have become a growing trend across the U.S., reports suggest that this latest wave of DQ shutdowns in the Lone Star State is an isolated event. But is there more to the story? Read on to uncover the real reason behind these closures and whether Texans should be concerned about Dairy Queen vanishing from the state.
The Reason Behind the Latest Dairy Queen Closures in Texas
Dairy Queen has recently shuttered 12 more locations across Texas, with six of them in East Texas. The affected restaurants include those in Hemphill, Jasper, Kountze, Huntington, Longview Eastman, and Lufkin. A Dairy Queen representative confirmed to KETK that these closures are connected to the 25 shutdowns that occurred in February.
“The closures are an isolated event, and we refrain from publicly sharing contract terms,” the Dairy Queen representative stated.
In February, court documents obtained by KETK revealed a legal dispute between American Dairy Queen Corporation and Project Lonestar, the operator of 38 franchise locations in Texas. The documents indicated that Dairy Queen had warned Project Lonestar that their franchise rights would be revoked if they failed to remodel the restaurants.
According to KETK’s latest report, it looks like the recent 12 closures stem from the same issue—Project Lonestar’s failure to meet the required remodeling standards.
Previous Dairy Queen Closures in Texas
On January 30th, Dairy Queen notified Project Lonestar that it had officially terminated 25 of its franchise locations and instructed a key supplier to halt all shipments to the remaining restaurants immediately. At the time, Project Lonestar warned that its locations would “run out of food, beverage and other restaurant supplies in the next one or two business days.”
As a result, the franchise owner opted to auction off assets from 24 of the 25 closed locations through an online sale. The auction featured a wide range of restaurant equipment and supplies from the affected sites. The 24 locations included:
East Texas
- 175 N Dickinson Dr. in Rusk
- 847 E Sabine St. in Carthage
- 4101 Gilmer Rd. in Longview
- 202 N Temple Drive in Diboll
- 580 N Interstate 20 East in Waskom
- 3121 North St. in Nacogdoches
Amarillo area
- 801 E Park Ave. in Hereford
- 609 W Broadway St. in Fritch
- 301 N 2nd St. in Canadian
- 1850 County Road 11 in Panhandle
Austin area
- 1701 W Pecan St. in Pflugerville
Beaumont area
- 345 Texas Highway 105 in Sour Lake
- 34250 U.S. 96 in Buna
DFW area
- 5441 Rufe Snow Dr. in North Richland Hills
Houston area
- 104 U.S. 90 in Dayton
- 602 Interstate 45 South in Huntsville
- 24022 E Lake Houston Parkway in Huffman
- 14421 Farm-to-Market 2920 in Tomball
- 515 S Washington Ave in Cleveland
Lubbock area
- 108 Chestnut St in Idalou
- 1612 U.S. 70 in Olton
Waco area
- 304 W Highway 79 in Franklin
- 200 Legacy Dr. in Hewitt
- 1509 Corsicana Highway in Hillsboro
Will there be more Dairy Queen closures in Texas?
It remains uncertain whether additional Dairy Queen closures are on the horizon in Texas. However, the Lone Star State continues to lead the nation in the number of Dairy Queen locations, with approximately 544 restaurants as of February 2025, according to ScrapeHero. This accounts for about 13% of all Dairy Queen locations nationwide, with Ohio (254) and Illinois (246) trailing behind.
Despite the recent closures, Dairy Queen still has a strong presence in Texas. So, while some locations have shut down, Texans can rest assured that the beloved chain will not completely disappear from the state anytime soon.