Oh No! Applebee’s and IHOP may be closing down in your neighborhood.
DineEquity, parent company for Applebee’s and IHOP has decided to close 105 to 135 Applebees restaurants, and 20 to 25 IHOP’s. This is due to locations and under-performing. The casual-dining restaurants are experiencing increased troubles as more customers have chosen to go to the quick-service restaurants like Panera Bread or Chipotle Mexican Grill, many of which state their menu is healthier and has more upscale food.
However, the two chains now will open 125 restaurants globally between them in new locations.
Applebee’s domestic system-wide comparable same-restaurant sales declined 6.2% in the second quarter of 2017, while IHOP’s declined 2.6% during the same period. Applebee’s has not done well, however IHOP is on solid ground so far, despite soft sales.
The company declined to release a list of locations that will be shuttered.