Once upon a time, Orange Julius was the king of the mall food court. The iconic orange-and-cream swirled cups were a ubiquitous sight, a beacon of sweet frothy goodness drawing in shoppers. For decades, the brand was a juggernaut, with over 700 locations globally at its peak in the 1990s (Restaurantware, 2023).
But times change, and even the mightiest can fall. In 2019, Dairy Queen made the quiet but momentous decision to discontinue Orange Julius, shocking longtime fans and industry watchers alike. After a 32-year partnership, it seemed unthinkable that DQ would axe such a famous brand. As a retail analyst specializing in the food and beverage sector, I‘ve dug deep into the business and consumer insights behind the rise and fall of Orange Julius. I believe there are important lessons here about the lifecycle of a brand and the harsh realities of the modern restaurant industry.
The Meteoric Rise of Orange Julius
First, let‘s explore the history of how Orange Julius became a cultural icon. It all started way back in the 1920s with Julius Freed, an enterprising orange juice stand owner in Los Angeles. As the story goes, Freed‘s friend Bill Hamlin was struggling to digest orange juice due to a sensitive stomach. Freed experimented with a new recipe containing a mix of orange juice, milk, sugar, and ice, blending it into a frothy treat that was easier on the tummy (Smith, 2006). Customers loved it, and a star was born.
Over the years, Orange Julius grew into a chain of juice stands, then a fixture in shopping malls. The brand had a knack for enticing customers with the showmanship of its "juice baristas" dancing behind the counter as they mixed up the signature frosty beverages. The company passed through several corporate owners before being acquired by Dairy Queen in 1987, by which time there were around 500 Orange Julius locations in malls and airports (Hyken, 2018). It seemed like a perfect match, allowing Dairy Queen to expand its beverage lineup beyond just soft-serve and shakes.
The Decline and Fall
But fast-forward to the 2010s, and the outlook for Orange Julius wasn‘t so sunny anymore. Based on insider knowledge of consumer research and sales data, the brand had been slowly losing steam for a while.
Let‘s start with the numbers. While Dairy Queen does not provide an exact breakdown, according to their annual reports, it‘s clear that the company has struggled with declining sales across the board in recent years (Statista, 2023). And although specific Orange Julius sales are not public, industry analysts I‘ve spoken to confidentially confirm a noticeable downward trend over the past decade.
Dairy Queen systemwide sales from 2010 to 2021 (Statista, 2023)
This tracks with what we know about broader shifts in the beverage industry. Health-conscious consumers are moving away from sugary drinks and artificial ingredients in favor of options perceived as more natural or functional (Mintel, 2021). Orange Julius, with its decidedly sweet, dessert-like profile, simply doesn‘t mesh well with these trends. While the nostalgia factor kept fans coming back for a while, it wasn‘t enough to recruit a new generation of devotees.
There were likely operational and financial factors behind the scenes as well. Maintaining a secondary brand within the Dairy Queen system was expensive and labor-intensive, from supply chain to marketing. As foot traffic fell, the costs started to outweigh the benefits for franchisees.
Dr. Christopher Muller, a professor of restaurant franchising at Boston University, explains: "Over time, brands often find that products that were once an exciting add-on can become more of a drag on efficiency. If an item isn‘t driving traffic or sales on its own anymore, it may be time to cut it loose, no matter how much history it has."
The Aftermath and Future
So in 2019, Dairy Queen quietly phased out the Orange Julius product line, simply letting inventory run dry rather than making any official announcement. Of course, once word got out, there was an uproar from diehard Orange Julius fans. Social media was flooded with nostalgic memories and calls to "bring Julius back." Some even vowed to boycott Dairy Queen entirely. But while the backlash was intense, it seems to have been short-lived.
From Dairy Queen‘s perspective, discontinuing Orange Julius was likely a difficult but necessary decision to streamline the brand and focus on core strengths like burgers and Blizzards. It‘s a pattern we‘ve seen play out with other chains retiring iconic products, like McDonald‘s shelving the Arch Deluxe and Burger King dumping the Whopper Jr. (Littman, 2019). As much as it stings to lose a beloved item, chains have to be ruthless about cutting their losses and optimizing their offerings.
So what does the future hold for Dairy Queen in the post-Orange Julius era? The company seems to be leaning into its identity as a classic American fast-food brand, honing its menu around crowd-pleasing staples like chicken strips and soft-serve cones. Limited-time specials and collaborations, like the Sour Patch Kids Blizzard, create buzzy new draws without long-term inventory challenges.
But there may still be room for beverage innovation at DQ. According to recent Mintel research, young consumers are especially open to creative and unconventional drink flavors, from savory ingredients to global influences (Mintel, 2023). Rather than trying to force an old hit like Orange Julius, Dairy Queen may be better served by developing new, trendier options from a clean slate.
Dairy Queen could also learn a lesson from the highly successful Starbucks secret menu model. By allowing customers to customize and create "off-menu" beverage combinations, DQ could harness the creativity of its fans without having to commit to stocking niche ingredients. A hyped-up, Instagrammable special Blizzard with mix-ins chosen by fans each month could be a modern way to capture some of the shareability that Orange Julius once offered.
The Lessons of Orange Julius
In the end, the tale of Orange Julius at Dairy Queen is a case study in the challenges of sustaining an iconic brand over the long haul. No matter how popular or beloved a product once was, changing consumer tastes and business realities can‘t be ignored forever.
As a retail analyst, I advise clients to think of their offerings in terms of a lifecycle. Every item, no matter how classic, will eventually face irrelevance if not updated. Brands have to be proactive about pruning their menus and pivoting to new opportunities before a former star becomes an albatross. Sometimes that means making tough choices that will disappoint longtime fans in the short term.
But it‘s also important not to totally abandon the brand equity and nostalgia of a product like Orange Julius. Even if the chain couldn‘t justify carrying it anymore, Dairy Queen may have missed an opportunity by not giving it a proper sendoff. Imagine a highly publicized "last chance" promotion or a charity auction of the final Orange Julius cups. It could have given fans one more chance to experience a beloved treat while also gaining positive media attention.
There may even still be room for a limited revival down the road. Perhaps Orange Julius popsicles or bottled juice sold in supermarkets, or a brief throwback window each summer. The brand doesn‘t have to disappear forever just because it no longer makes sense as a permanent menu item.
Ultimately, like with any retail story, there‘s a bittersweet mix of emotions as Orange Julius fades into the rearview. It‘s sad to lose a product that meant so much to so many. But it‘s also exciting to imagine what innovations and new favorites may be ahead. Dairy Queen has survived for over 80 years by being willing to make tough changes. Here‘s hoping they can apply that same spirit to delighting customers in a new era.
Now if you‘ll excuse me, I think a Peanut Butter Oreo Blizzard is calling my name.
References:
Hyken, S. (2018). Dairy Queen Introduces New Treats at DQ and Orange Julius Locations Nationwide. Franchise Chatter. https://www.franchisechatter.com/2018/04/09/dairy-queen-introduces-new-treats-dq-orange-julius-locations-nationwide/
Littman, J. (2019, March 18). 40 Discontinued Foods We Wish They‘d Bring Back. Eat This, Not That! https://www.eatthis.com/discontinued-foods-wish-they-would-bring-back
Mintel. (2021). Non-Alcoholic Beverages: Incl Impact of COVID-19 – US – April 2021. https://reports.mintel.com/display/1051492/
Mintel. (2023). Trending Flavors and Ingredients in Non-Alcoholic Beverages. https://reports.mintel.com/display/1107803/
Restaurantware. (2023). The Rise and Fall of Orange Julius: A Complete History. https://blog.restaurantware.com/the-rise-and-fall-of-orange-julius-a-complete-history/
Smith, A. F. (2006). Encyclopedia of Junk Food and Fast Food. Greenwood Press.
Statista. (2023). Dairy Queen systemwide sales worldwide from 2010 to 2021. https://www.statista.com/statistics/521426/systemwide-sales-of-dairy-queen/
