Two popular U.S. restaurants, Applebee’s and IHOP, are in the works to produce locations combining both brands — under one roof.
According to Today, the two brands, both owned by parent company Dine Brands, are planning out the two-in-one restaurants after finding success with the idea in other countries. According to a press release, Dine Brands reported eight international model locations currently in operation, most recently one in Leon, Mexico.
The newest dual-location was recently featured in an IHOP YouTube video.
The parent company is willing to introduce the concept domestically when “the right opportunity” comes its way, per USA Today.
Why would Dine Brands combine both restaurants?
CEO of Dine Brands, John Peyton, claimed that the combination restaurants are to maximize profit and reduce costs by getting customers throughout the day to stay at one location. “At breakfast, when there are more IHOP customers, customers can be seated in the Applebee’s area and vice versa at dinner,” Peyton told Nation’s Restaurant News.
Similarly, Peyton claimed that the dual-brand locations make twice as much money as standalone Applebee’s and IHOP locations. “Which you would expect,” he said to NRN. “They continue to perform well in their markets because they address all four dayparts.”
Peyton added that while the restaurants seemingly fit in all kinds of metropolitan and suburban areas, the company is focusing on placing models in differing models — part of an “infill strategy,” reports NRN.
Are Applebee’s and IHOP doing OK?
According to CNN, 33 restaurants were added to IHOP’s roster last year, whereas Applebee’s launched only 10 new locations — and lost 46. And, per NBC News, hundreds of Applebee’s locations have closed down since 2017.
However, Applebee’s remains a popular restaurant chain and operated over 1,600 locations by the end of 2023. For comparison, IHOP had 1,800 locations last year, according to New York Post.
Standalone IHOP and Applebee’s locations reportedly play important roles in Dine Brands’ strategy and further growth, per Today.
The success of dual-brand locations
Two-in-one restaurants remain a profitable cornerstone for several food brands. For example, the Yum! Brands umbrella features multiple brands in dual locations, including:
Additionally, per CNN, Focus Brands owns 175 joint restaurants — with 65 more — under the following brands:
- Auntie Anne’s.
- Carvel.
- Cinnabon.
- Jamba.
- Moe’s Southwest Grill.
- McAlister’s Deli.
- Schlotzsky’s.
These combination restaurants not only hold revenue potential for Focus Brands, but the model reportedly expands beyond malls and corner stores.
Brian Krause, Focus Brands chief development officer, shared to CNN, “There will always be a place in malls, but there is an immense amount of growth opportunity in streetside venues, and, by dual branding, there is more opportunity for enhanced revenue.”