Tags: applebees | ihop | restaurants | closing

Applebee's, IHOP Closing 160 Restaurants

Image: Applebee's, IHOP Closing 160 Restaurants

Top: IHOP store in Coquitlam, BC. (Photopal604/Dreamstime) Bottom: Applebee's Restaurant sign in Salinas, California. (Ken Wolter/Dreamstime)

By    |   Friday, 11 Aug 2017 10:51 AM

Applebee’s and IHOP could be closing up to 160 restaurants this fiscal year, parent company DineEquity said Thursday.

During its quarterly earnings report, DineEquity Inc. said 105 to 135 Applebee’s restaurants could close, and 20 to 30 new restaurants are expected to open, the Los Angeles Times reported. Between 20 and 25 IHOP restaurants could close, while 80 to 95 new locations are expected. The company previously expected to close 40 to 60 Applebee's locations and 18 IHOP stores.

Both restaurant chains have struggled in competition with quick-service restaurants, USA Today noted.

The publication cited Instinet analyst Mark Kalinowski, who said Applebee’s "remains out-of-favor with casual-dining consumers" and IHOP "may be feeling the effects of DineEquity’s struggles as well."

"We are investing in the empowerment of our brands by improving overall franchisee financial health, closing underperforming restaurants and enhancing the supply chain," CEO Richard J. Dahl said in a statement. "We believe 2017 will be a transitional year for Applebee's and we are making the necessary investments for overall long-term brand health and expect to see improvement over the next year."

Domestic system-wide comparable same-store sales declined 6.2 percent at Applebee's and 2.6 percent at IHOP in the second quarter of 2017, according to the company.

"IHOP remains on solid ground, despite soft sales this quarter," Dahl said in the statement. "I am optimistic about the growth in both effective franchise restaurants and system-wide sales."

Dahl added that IHOP was addressing customer’s convenience needs with various initiatives that included "online ordering as well as accelerating tests for delivery and development of an IHOP mobile application."

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Applebee's and IHOP could be closing up to 160 restaurants this fiscal year, parent company DineEquity said Thursday.
applebees, ihop, restaurants, closing
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2017-51-11
Friday, 11 Aug 2017 10:51 AM
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