Applebee’s and IHOP could soon combine locations in the United States, following successful mergers internationally.
Both owned by parent company Dine Brands Global Inc., the chains would share resources at the back of the restaurants and maintain a blended public-facing front.
Last year, The Dallas Express reported that Dine Brands acquired Fuzzy’s Taco Shop from Experiential Brands in an $80 million all-cash deal. Unfortunately for fans of the fast-casual Mexican restaurant, Fuzzy’s has no plans to similarly enjoy a shared space with Applebee’s and IHOP.
“We will continue to monitor the success of this test concept and will consider options for further expansion in the U.S. in select locations if and when it makes sense to do so,” Dine Brand’s CEO John Peyton said in a statement to FOX Television Stations, referring to the merged locations being trialed internationally.
While the restaurants would maintain separate entrances, guests could be seated on either the IHOP or Applebee’s side of the establishment when needed. One benefit of combining the two eateries is that each tends to be busy at different times of the day.
The international co-branded units, says Peton, have the same square footage as a traditional standalone IHOP or Applebee’s but generate double the revenue.
According to the company’s recent earnings release, as of December 31, 2023, Dine Brands had 1,536 Applebee locations across the United States, 33 fewer than one year prior. At the same time, there were 1,696 IHOPs as of the end of last year, 19 more than at the end of 2022.
Dine Brands’ share price has struggled in recent years. Over the past 12 months alone, the company’s stock has dropped over 31%, compared to the over 26% appreciation experienced by the S&P 500 during that period.
