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Two major U.S. restaurant chains may merge to share dining space

Two of America’s largest restaurant chains may soon be merging. Applebee’s and iHop, both owned by Dine Brands, may soon have dual-brand stores that share a blended back-of-house and front-of-house space, according to the company’s earnings report last week. It is said that there is.

Dine Brands CEO John Payton said the model has already been tested in eight “prototypes” overseas, including the newest Applebee’s IHOP restaurant in Leon, Mexico. Stated.

Peyton said on the conference call that the company hopes to open dual-brand restaurants in the U.S. once it finds the “right opportunity to do so.”

In an interview with National restaurant news, Payton said the hybrid restaurant will have “separate entrances” so guests can go back and forth between Applebee’s and IHOP. “During breakfast, when there are a lot of IHOP customers, customers will be able to sit in the Applebee’s area, and vice versa during dinner,” he said.

He said on an earnings call that dual-brand restaurants generate twice as much revenue as traditional standalone Applebee’s and IHOP locations. “That’s as you might imagine,” he told NRN. . “They continue to perform well in the market as they work across all four time zones.”

“This is a great opportunity as both brands are complementary,” he said.

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Two of America’s largest restaurant chains may soon be merging. Applebee’s and iHop, both owned by Dine Brands, may soon have dual-brand stores that share a blended back-of-house and front-of-house space, according to the company’s earnings report last week. It is said that there is.

Scott Olson/Getty Images


Several other companies that own various restaurant chains are also consolidating their brands. Focus Brands, which owns Auntie Anne’s, Carvel, Cinnabon, Jamba, McAlister’s Deli, Moe’s Southwest Grill and Schlotzsky’s; Announced in 2023 It had more than 175 dual-brand stores and was growing.

For example, Auntie Anne’s and Jamba might share one space, or three brands might share one space: Auntie Anne’s, Cinnabon, and Carvel.

2019 iHop Co., Ltd. agreed to buy Applebee’s International Co., Ltd. Approximately $1.9 billion in cash. At the time, IHOP’s market capitalization was about half that of Applebee’s, and Pancake House intended to borrow money to finance the acquisition, the Wall Street Journal first reported.

IHOP paid $25.50 a share for Applebee’s, the nation’s largest sit-down restaurant chain. As a result of the acquisition, Dine Brands was created.

According to Dine Brands, which owns Fuzzy’s Taco Shop in addition to Applebee’s and IHOP, the three brands have a combined presence of more than 3,500 stores in more than 18 countries. Dine Brands Inc.’s 2023 total revenue was $831.1 million, down from $909.4 million a year ago.

In 2023, the company opened 72 new Applebee’s and IHOP franchise stores, but closed 75 stores.

Summarize this content to 100 words Two of America’s largest restaurant chains may soon be merging. Applebee’s and iHop, both owned by Dine Brands, may soon have dual-brand stores that share a blended back-of-house and front-of-house space, according to the company’s earnings report last week. It is said that there is.Dine Brands CEO John Payton said the model has already been tested in eight “prototypes” overseas, including the newest Applebee’s IHOP restaurant in Leon, Mexico. Stated.Peyton said on the conference call that the company hopes to open dual-brand restaurants in the U.S. once it finds the “right opportunity to do so.”

In an interview with National restaurant news, Payton said the hybrid restaurant will have “separate entrances” so guests can go back and forth between Applebee’s and IHOP. “During breakfast, when there are a lot of IHOP customers, customers will be able to sit in the Applebee’s area, and vice versa during dinner,” he said.He said on an earnings call that dual-brand restaurants generate twice as much revenue as traditional standalone Applebee’s and IHOP locations. “That’s as you might imagine,” he told NRN. . “They continue to perform well in the market as they work across all four time zones.”

“This is a great opportunity as both brands are complementary,” he said.

Two of America’s largest restaurant chains may soon be merging. Applebee’s and iHop, both owned by Dine Brands, may soon have dual-brand stores that share a blended back-of-house and front-of-house space, according to the company’s earnings report last week. It is said that there is.

Scott Olson/Getty Images

Several other companies that own various restaurant chains are also consolidating their brands. Focus Brands, which owns Auntie Anne’s, Carvel, Cinnabon, Jamba, McAlister’s Deli, Moe’s Southwest Grill and Schlotzsky’s; Announced in 2023 It had more than 175 dual-brand stores and was growing.For example, Auntie Anne’s and Jamba might share one space, or three brands might share one space: Auntie Anne’s, Cinnabon, and Carvel. 2019 iHop Co., Ltd. agreed to buy Applebee’s International Co., Ltd. Approximately $1.9 billion in cash. At the time, IHOP’s market capitalization was about half that of Applebee’s, and Pancake House intended to borrow money to finance the acquisition, the Wall Street Journal first reported.

IHOP paid $25.50 a share for Applebee’s, the nation’s largest sit-down restaurant chain. As a result of the acquisition, Dine Brands was created. According to Dine Brands, which owns Fuzzy’s Taco Shop in addition to Applebee’s and IHOP, the three brands have a combined presence of more than 3,500 stores in more than 18 countries. Dine Brands Inc.’s 2023 total revenue was $831.1 million, down from $909.4 million a year ago. In 2023, the company opened 72 new Applebee’s and IHOP franchise stores, but closed 75 stores.

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Caitlin O’Kane

Caitlin O’Kane is a journalist in New York City who works as a senior manager of content and production on the social media team at CBS News. She writes about a variety of topics and produces her CBS News streaming show, “The Uplift,” which focuses on good news.

https://www.cbsnews.com/news/applebees-ihop-combining-share-dining-spaces-dine-brands-inc-chain-restaurants-earnings-call/ Two major U.S. restaurant chains may merge to share dining space

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