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Applebee's International, Inc. and IHOP Restaurants LLC are reportedly planning to open restaurants that will house both of their brands. This would mean the two would operate under one roof, and the restaurants would be opened in various locations in the United States.
A joint restaurant concept between Applebee's and International House of Pancakes (IHOP) emerged after it was reported that the former's business was shrinking. Likewise, due to the dwindling operations, the chains' parent company, DINE Brands Global Inc., is now looking to combine two of its leading restaurant brands.
Two-in-One Concept
Dine Brands is seriously considering establishing a joint concept to combine IHOP and Applebee's food specialties into one restaurant. The company's chief executive officer, John Peyton, mentioned the idea to investors and analysts during the firm's earnings call last week, according to the New York Post.
Peyton explained that the co-branded IHOP and Applebee's locations will present "a shared back of the house while the front of the house will feature a fusion and blending of the two brands. Once this concept is successfully implemented, customers who crave food items offered by the two restaurants can easily have them at the same time without so much hassle.
How the Idea Came About
The parent company of Applebee's and IHOP launched a co-branded restaurant in Leon, Mexico, in January. The concept was a hit, and seeing this success overseas, Dine Brands thought it might also work in the U.S.
Amid the challenging restaurant sector, having two restaurants in one space could attract more customers. In this case, Dine Brands' idea is to combine two of the company's favorite dining places, and the company is predicting good results.
"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," Peyton told TODAY.com in a statement.
Lastly, the CEO added that they will continue to monitor the success of the test concept in Mexico and will consider expanding the co-branding setup in the U.S.
Photo by: Nelson Ndongala/Unsplash
