IHOP and Applebee’s are considering bringing a joint restaurant concept to the U.S. after seeing success with the model overseas.
In an increasingly challenging restaurant environment, the two brands have been teaming up to entice more customers to dine in by creating co-branded IHOP-Applebee’s restaurants that feature a shared space.
Dine Brands, the parent company of the two chain restaurants, discussed the plans during a recent earnings call on Feb. 28.
“Dine Brands’ IHOP/Applebee’s dual-branded prototype continues to perform well in our international markets, and we opened our 8th dual-branded restaurant in January 2024 in Leon, Mexico, which presents a compelling opportunity for further growth since Mexico is one of our largest international markets,” Dine Brands CEO John Peyton said in a statement to TODAY.com.
The CEO noted that the company will “continue to monitor the success of this test concept” and “consider options for further expansion in the U.S. in select locations if and when it makes sense to do so.”
What are co-branded IHOP/Applebee's restaurants?
While talking to Nation’s Restaurant News, Peyton explained that co-branded IHOP/Applebee’s restaurants share a “back-of-house space” and “discrete entrances” on the exterior. Inside, customers can opt to visit either IHOP and Applebee’s. During peak hours, the restaurants can borrow space from each other.
“At breakfast, when there are more IHOP customers, customers can be seated in the Applebee’s area and vice versa at dinner,” Peyton told the publication.
The CEO explained that the co-branded restaurants are the same size as a standalone IHOP or Applebee’s and are generating double the revenue.
“Which you would expect. They continue to perform well in their markets because they address all four dayparts,” Peyton said. “It’s a fantastic opportunity because the two brands are complementary.”
When will co-branded IHOP/Applebee’s restaurants be open in the U.S.?
Per Nation’s Restaurant News, Dine Brands hopes to open the co-branded restaurants in the U.S. in the next 12 to 24 months.
Standalone IHOP and Applebee’s locations will continue to play an important role in the company’s growth strategy. Per NBC News, Dine Brands will be opening 25 new restaurants with enhanced features like robotic beer dispensers.