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Dine Brands Global, the parent company of IHOP and Applebee’s, plans to open a dozen dual-branded IHOP-Applebee’s restaurants in the United States next year. The first location is set to open in Texas, marking the first time the two popular chains have been combined under one roof in the US.
This move follows the success of similar dual-branded restaurants in international markets like Canada, the United Arab Emirates, and Mexico. Dine Brands believes that this concept can be a significant growth driver for its franchisees in the US, offering them an to capitalize on the popularity of both brands.
In a statement, John Peyton, Dine Brands CEO said: “It allows IHOP to shine in the morning and Applebee’s to thrive in afternoons and evenings. The menu leverages each brand’s unique offerings to maximize dayparts and provide more choices, variety, and value to guests.”
The company has plans for 15 sites locations in the U.S., with 12 expected to open in 2025.
Internationally, these dual-branded restaurants have seen a 1.5 to 2 times the sales of one brand. 8 “prototypes” have been testing the waters internationally in places like Leon, Mexico.
The dual-branded restaurants will feature shared kitchen space, cross-trained staff, and a combined menu that allows customers to order from both brands at any time of day. This innovative approach aims to streamline operations, reduce costs, and provide guests with a wider range of dining options.
More Dual-Branded Features
- Discrete entrances to encourage guests to flow between the two restaurants
- Shared back of house space
- When IHOP experiences a “rush” during breakfast hours, the house of pancakes can seat guests in Applebee’s sitting area. And Applebee’s can do the same during “dinner” hour.
- Separate branding on storefronts
- Open-layout dining areas with loosely defined dining areas
- A shared kitchen
Peyton continued during an earnings call: “It’s really a B-to-B product in the sense that it’s got complimentary dayparts, a shared kitchen, a common menu, cross-trained staff.”
The concept isn’t entirely new as chains in the US have already done similar. Joint Taco Bell and KFC establishments…even Long John Silver and KFC under one roof. This seemed more popular in the mid-2000’s.
It will be interesting to see how this IHOP/Applebee’s concept shakes out in the coming months and if Dine Brands could be onto something that will revitalize both of their brands.
