Dairy Queen Rebuild Eagerly Awaits Approval for Construction

As of May 2026, the City of Portland has approved the permits required to rebuild the Dairy Queen on Southeast Division and 55th Avenue. These include a Land Use Review permit, necessary for construction, and a Portland Bureau of Transportation (PBOT) permit for the drive-thru. Mohan Grewal, the Dairy Queen franchise owner for the Division location, has been trying to reopen the decades-old establishment since its initial closing and demolition in 2019. Currently, Grewal is not set to begin construction, but he hopes that once legal formalities are taken care of, the rebuild will take eight to 10 months.

Since 2019, Grewal’s operation has hit many bumps in the road. “I wanted this project done three to four years ago,” he says. “[The] delay is costing me more money.” He explains that a few causes of the delay include the COVID-19 pandemic and the need to obtain PBOT and land use permits. 

Neighbors of the potential Dairy Queen have made their concerns clear, as well as their frustrations about the length of the rebuilding process, according to City Planner Andrew Gulizia. Gulizia wrote a letter to the neighborhood that was distributed in late 2025 and cited in an article on Bridgetown Bites, asking nearby residents for their support in the Dairy Queen operation. “About 60% of the public comments were in support of building the new Dairy Queen with the drive-through, and about 40% were opposed,” he explains. Many of the residents he spoke to expressed nostalgia for the establishment and hope for its return. Others commented that the food sold is unhealthy for the elementary and high schoolers nearby. 

In Gulizia’s letter, he explained that construction began in September of 2025, but was halted after 10 days due to concerns about the Dairy Queen’s drive-thru. Though the establishment had always included a drive-thru, new apprehensions arose from the City of Portland about traffic flow on Division. Gulizia countered these concerns, stating that new plans from Grewal will accommodate nine to 10 cars instead of only two, and claiming that this will steady traffic flow. In addition to adjusting building plans, Grewal says that the location will open at 10:30 a.m. to avoid morning rush hour traffic. However, due to the Dairy Queen’s closing at 10:30 p.m., evening traffic may be impacted.

The old building — nostalgic as it was — became outdated and run-down before its eventual closure. “We had a very small old building without a dine-in room, but it had a lot of issues,” Grewal states. “We had one drive-thru window, which was very close to [Division].” Grewal wants to move the window to the back of the building to prevent traffic on Division and add a dine-in area so that customers — including Franklin students — won’t have to wait for food in the cold and rainy weather. These plans have amounted to a two-story establishment on a 20,000 square foot lot with parking, a drive-thru, and a polished exterior.

Grewal emphasizes that the restaurant will create jobs for students and residents nearby, stating, “Students are a big part of the Dairy Queen workforce and we love to teach them reactivit[y], punctuality, [and] teamwork.” Grewal is confident that the rebuild will be successful, saying that the surrounding community shares his excitement in beginning construction. “This Dairy Queen has always been part of the neighborhood for over 60 years and it will continue to be part of it,” he says. “I am ready to start as soon as I [am] allowed to start.”