Dairy Queen and Rural Third Places

Dozens of Dairy Queen restaurants across Texas are closing, taking a critical community space with them.

1 minute read

May 11, 2025, 7:00 AM PDT

By Diana Ionescu @aworkoffiction


Historic Dairy Queen restaurant building with neon signs at night.

Chrisfloresfoto / Adobe Stock

“A wave of Dairy Queen closures across Texas this year have hit small towns especially hard,” writes Jaime Adame in a piece for The Daily Yonder that explores the chain’s role as a “third places” in many rural Texas towns. “The closures come amid an ongoing legal dispute. The restaurants’ ownership, under the name Project Lonestar, Inc. and backed by a Los Angeles-based franchisee, alleged the chain’s corporate leadership effectively tanked attempts to sell off some of the restaurants and keep their doors open.”

Close to half of the 30 Texas locations that shut down were in towns with populations of under 3,000 people. The restaurants often served as a community anchor, an affordable, all-ages “third place” to gather and socialize. “Rural areas are more likely to struggle at providing such “third places,” according to Danielle Rhubart, a researcher at Penn State University who studies rural health and well-being.”

The article highlights personal stories of the connections made and strengthened at local Dairy Queens. When they shutter, some communities are left with few other places to go. In some cases, former Dairy Queen buildings have been repurposed into new restaurants, but small communities can have a hard time attracting businesses.

Friday, May 9, 2025 in The Daily Yonder

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