Is Applebee’s on the Chopping Block? Closures Across The US

Can it be? Is Applebee’s in trouble? The word it’s that the ubiquitous sit-down restaurant has been closing locations across the US over the past year end with more scheduled to meet the same fate.

In 2023 alone, Applebee’s closed a significant number of locations, 46 to be exact, due to underperformance. The trend is expected to continue in 2024, with Dine Brands Global, Applebee’s parent company, anticipating an additional 25 to 35 closures.

Business As Usual Or Troubled Waters?

These closures come amidst a changing restaurant and fast food landscape. Diners are increasingly seeking out more diverse and cheaper meal options as inflation rakes customers wallets over the coals. Applebee’s may be stumbling to keep up in the face of evolving purse-tightening and diners choosing to cook their meals at home.

Tere’s a silver lining for those who still enjoy a good ol’ Applebee’s meal. Dine Brands Global isn’t giving up entirely. In 2025, they plan to launch a unique concept: combination Applebee’s and IHOP restaurants which aims to attract customers from both brand fan bases while streamlining operating costs. The best of both worlds. The two-in-one concept has been testing internationally along with a handful of locations in the US.

They also plan to take on the fast food industry by promising better deals than their drive-thru competitors.

Dine Brands CEO John Peyton told CNBC that they’re all competing for the same diners: “The Whole Lotta Burger for $9.99 — if you can have our burger for $10, which is great quality, abundant and eat in our restaurant, in our experience, why would you eat a $10 burger out of a paper bag in your car?”

Chili’s has taken similar approach going so far as to poke the bear (the bear being McDonald’s) in recent commercials. Our favorite line from one ad introducing the new Big Smasher Burger? “See you later tiny drive-thru burgers”.

The Future of Applebee’s

Like a few other fast-casual chains, Applebee’s will attempt to lean on value to bring customers back on board.

Will the closures continue and the combination restaurants be a success story? And can Applebee’s take on the fast food industry? If Applebee’s can adapt and carve out a niche in the ever-competitive dining scene, we don’t see why not!