Applebee’s Plans Significant Restaurant Closures
Applebee’s Neighborhood Grill + Bar expects to close 15 to 25 restaurants in 2024. This announcement comes from its parent company, Dine Brands Global Inc. The closures target underperforming locations across the United States. This marks a continued trend for the casual dining chain.
Earlier, Applebee’s closed 46 restaurants in 2023. This was part of a broader strategy to streamline operations. The company aims to improve overall brand health. This move reflects ongoing challenges in the competitive casual dining sector.
Dine Brands Global Strategy Shift
Dine Brands Global also owns the IHOP breakfast chain. The company is focusing on modernization. They aim to reduce system-wide restaurant counts. This strategy is for both Applebee’s and IHOP. CEO John Peyton discussed the plans during a recent earnings call. He highlighted the importance of a healthy portfolio.
The company seeks to support profitable growth for its franchisees. It also wants to enhance guest experiences. This involves updating older restaurant locations. The goal is to ensure a strong future for both brands.
Reasons Behind Applebee’s Closures
Many factors contribute to these Applebee’s closures. Aging restaurant facilities are a primary concern. Some locations need significant investments for updates. These investments are often not viable. Declining sales at specific sites also play a role. Competition in the casual dining market remains fierce.
Franchise agreement expirations are another factor. Many of Applebee’s locations operate under these agreements. The company assesses each location’s performance. Decisions are made in collaboration with franchisees. This ensures a strategic approach to closures.
IHOP Shows Growth
Meanwhile, IHOP is showing different trends. The breakfast chain plans to open 15 to 25 new restaurants in 2024. This expansion signals confidence in the IHOP brand. Dine Brands Global is strategically growing IHOP. They are also optimizing Applebee’s footprint.
IHOP has seen consistent sales growth. It attracts customers with breakfast and lunch options. The company emphasizes this growth. They believe it balances the portfolio’s overall performance. This dual strategy addresses market demands for each brand.
Impact on the Casual Dining Sector
The casual dining segment continues to evolve. Brands like Applebee’s face consumer shifts. Economic pressures also influence dining habits. The company’s actions reflect broader industry trends. Restaurant chains must adapt to stay competitive. Modernizing facilities and menus is crucial.
Dine Brands Global is committed to brand health. The company prioritizes long-term success. It supports franchisees through these changes. These strategic closures are intended to strengthen Applebee’s. The goal is to ensure a more robust and efficient future for the brand.
