AN ICONIC American chain and rival to Chili’s is opening 14 more spots in collaboration with a popular pancake franchise.
The team up was first reported only back in November, but the partnership is already seeing significant results.
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And it’s only been a couple of months since the first dual-branded Applebee’s and IHOP opened, but the model is paying off.
Restaurant Dive reports that Dine Brands, the company that made this all possible, is on track to have 14 dual-branded spots in the US by the end of the year.
This is after the first one that opened in Seguin, Texas, in a San Antonio suburb, performed “above expectations”.
The unit generated three times the sales compared to when it was a standalone IHOP, according to Dine Brands’ CEO John Peyton.
An additional eight locations are expected to open in the San Antonio market over the next two years.
Peyton said: “As a result of this strong showing, we continue to receive interest from both new and existing franchisees to build or convert to this new concept.
“These deals in particular are positive indicators that our development strategy is resonating with our franchisees for two reasons.
“First, it’s a great example of franchisee cross pollination between our brands, and second, it shows that our franchisees are engaged and interested in growing our brands, particularly with our new restaurant formats.”
Guests have been said to particularly respond to the combined menu of brand favorites, bringing together a complimentary array of both chain’s best offerings.
Dine is further set to remodel Applebee’s locations and open new IHOPs to boost operational sales.
Everything might sound rosy, but there’s still a way to go for the dual-brand strategy, however.
During the first quarter of 2025, comparable sales fell by 2.2% for Applebee’s and 2.7% at IHOP.
GOING FORWARD
Going forward, development in the US will focus on a mix of dual-branded ones and standalone locations.
This will largely depend on what is practical for each territory.
Dine is vigilant not to infringe on areas with dual brands if that wouldn’t be appropriate.
As Peyton emphasised: “not every IHOP can take an Applebee’s and not every Applebee’s can take an IHOP because of the adjacent brand next to them.”
This year has been said to be one of transition for Dine.
Individually speaking, Dine has prepared plans to help boost the 47 Applebee’s it acquired.
Restaurant closures in 2024
BOSSES at major dining chains have announced a series of restaurant closures. The U.S. Sun has compiled a list of the chain’s affected.
- Cracker Barrel: Stores in Medford, Oregon, Columbia, South Carolina, and Sacramento, California, have closed.
- Mod Pizza: Bosses dramatically shuttered 27 shops in April, including some in the state of California.
- Frisch’s Big Boy: Restaurant chiefs confirmed the closure of a restaurant in Covington, Kentucky in April.
- Outback Steakhouse: The chain will shutter 41 ‘underperforming’ locations this year.
- Two Bucks: Four restaurants in Ohio closed in April.
- Chili’s: A restaurant in Port Arthur, Texas, has shut permanently as well as one in Irvine, California, and one in Pittsfield, Massachusetts.
- Friendly’s: Bosses confirmed an establishment in Ronkonkoma, Long Island will close.
- Pizza Hut: A restaurant in Glen Falls, New York, closed at the end of March, followed by four in Ohio in June and 15 in Indiana. This was followed in July by a bankruptcy filing from its parent company which announced the closure of 150 locations.
- Carl’s Jr.: The first Boise, Idaho location has closed.
- In-N-Out: An Oakland location closed earlier in the year due to crime in the area.
- Cheesecake Factory: The chain is set to shutter a location in Memphis, Tennessee in July.
- Applebee’s: Announced the closure of between 25 and 35 locations this year.
- Red Lobster: The seafood chain filed for bankruptcy in May and shuttered over 100 locations.
- Taco John’s: Shuttered a restaurant in Minnesota and put the building up for sale in May.
- Frisco’s Chicken: The poultry restaurant shuttered all of its locations over the summer
- Rubio’s Coastal Grill: Has announced the closure of 48 locations in California after filing for bankruptcy.
- Burger King: Shuttered a location in California in June after 30 years.
- Foster’s Freeze: Shuttered a location in California after five decades in business due to financial struggles.
- Chicken Salad Chick: After nine years the restaurant shuttered one location in Jacksonville, Florida, with no reason given.
- México Lindo: The New York City-based restaurant announced its final day after 52 years and finally shuttered its doors for good on July 31.
- American Dream Pizza: Closed all of its locations in Oregon in July.
- Tender Greens: The Southern California-based chain filed for bankruptcy.
- Lefty’s Famous Cheesesteaks, Hoagies, & Grill: Abruptly shuttered 18 locations in July due to a family feud.
- Firehouse Subs: Shuttered a location in the Tri-Cities area of Washington State over the summer citing “unforeseen circumstances”
- Taco Time: The Taco Bell rival shuttered a location in Seattle after 50 years following a death in the franchise owner’s family.
- Burgerim: Shuttered a location in Burlington, Massachusetts in July, reigniting bankruptcy fears from 2020.
- Denny’s: The chain has shuttered over 40 locations so far this year with the owner of the one outlet blaming vandalism.
- Starbucks: The chain shuttered one of its most iconic locations in New York City after almost three decades with fans blaming crime. It also lost a location in Seattle.
- Subway: In August, the sandwich chain shuttered over 20 locations across the US and Canada after a franchisee lost money after being a victim of fraud.
- IHOP: A restaurant in New Hampshire shut its doors after 24 years, leaving four locations in the state.
- Switchback Coffee Roasters: The popular chain filed for bankruptcy in August after over a decade in business.
- Jimmy John’s: The sandwich shop chain shuttered a location in Nevada on August 19 after 12 years citing overexpansion issues.
- KFC: Closed the remaining three locations in Rockford, Illinois all on the same day on August 19. In total, it closed six locations across four cities in Illinois.
- Rusty Bucket: The chicken shop chain confirmed it would officially leave Florida as it announced a handful of closures including in Sarasota and Ohio.
- Buca di Beppo: The Olive Garden rival abruptly shuttered 44 locations across five states before filing for bankruptcy.
- Red Robin: Announced the closure of its Ashburn, Virginia location on August 25 after 15 years in business.
- Noodles & Company: Shuttered dozens of locations due to their contribution to around $2 million worth of losses.
- Shoney’s: The classic American-style food chain founded in 1947 officially exited Ohio after three decades of business as it reduced its operational footprint.
- Homegrown: The sandwich chain based in Seattle announced the closure of 10 locations leaving 150 employees in the lurch.
- World of Beer: Filed for bankruptcy after closing 14 outlets.
- Arby’s: The chain announced a number of closures this year including in Lexington, Kentucky, Akron, Ohio,
- Uno Pizzeria & Grill: Shuttered a location in New Jersey in July, leaving just two in the state, followed by the closure of a Baltimore location in August.
- Hart House: Shutterd all four locations in California in September just two years after the vegan fast-food restaurant chain was launched by actor and comedian Kevin Hart.
This includes adjusting menu prices based on a price optimization study and boosting local marketing efforts.
The strategy also extends to aesthetic improvements like awnings, lighting and refacing the facades.
New tables and upholstery could also be added inside.
As far as IHOP goes, that chain continues to open 40 standalone locations annually.
Peyton continued: “This year will be a transition year, with investments tied to operations, marketing, remodeling and dual brand conversions of these restaurants, and we’re working quickly to execute on each of these initiatives.”
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