Applebee’s Bold Remodeling Plan to Revitalize Restaurants
In an effort to counter a wave of restaurant closures, Applebee’s CEO John Peyton has unveiled an ambitious plan to overhaul 30 of its locations. This initiative, dubbed the "Lookin’ Good" scheme, aims to modernize both the appearance and overall dining experience at select Applebee’s restaurants. The remodeling process, which will commence this year, is part of a broader strategy to align Applebee’s with evolving consumer preferences and expectations. The plan also includes refranchising the remodeled units and transforming some locations into dual-branded Applebee’s and IHOP venues, a concept that has already shown promising results in terms of increased revenue.
Dine Brands’ Strategic Shift Towards Dual Branding
The decision to introduce dual-branded locations is a strategic move by Dine Brands, the parent company of Applebee’s and IHOP, to optimize resources and boost sales. According to Peyton, the dual-brand concept has already demonstrated significant success, with one location in Seguin, Texas, seeing a threefold increase in sales after being converted. This approach is expected to be a cornerstone of the company’s development strategy, with plans to open 12 to 14 dual-branded locations in the U.S. by 2025. The company also aims to refine its off-premise business model with a new prototype, further enhancing the overall dining experience for customers.
Applebee’s Struggles and Restructuring Efforts
Applebee’s has faced considerable challenges in recent years, including a decline in the number of its locations from 1,578 in 2021 to 1,501 in 2024. The chain has also grappled with shrinking sales figures, necessitating a reevaluation of its business strategy. In response, Dine Brands has projected a loss of 20 to 35 Applebee’s locations in 2025, alongside plans to open 10 new locations and close 10 IHOP sites. The “Lookin’ Good” initiative is a crucial component of this restructuring, focusing on revitalizing the brand and halting further closures. Peyton has emphasized the importance of this program, noting that a significant portion of Applebee’s franchisees have already committed to accelerating remodels by the end of 2025.
Industry-Wide Restaurant Closures: A Growing Trend
The challenges faced by Applebee’s are not unique to the chain, as the restaurant industry as a whole has experienced a wave of closures in 2024. Major casual dining chains such as Cracker Barrel, Mod Pizza, and Outback Steakhouse have also shuttered multiple locations. The reasons for these closures vary, ranging from financial struggles to changing consumer preferences and increased competition. The trend underscores the competitive and often volatile nature of the dining industry, where adaptability and innovation are crucial for survival.
Positive Notes and Future Prospects
Despite the challenges, Applebee’s has found some success with its Really Big Meal Deal, which contributed significantly to sales growth and improved customer traffic in 2024. This suggests that strategic menu offerings and value-driven promotions can play a pivotal role in revitalizing the brand. Additionally, the company’s expansion of dual-branded locations and its focus on off-premise dining present opportunities for growth and increased customer engagement. While the road ahead is undeniably challenging, Applebee’s is taking proactive steps to ensure its longevity and relevance in a competitive market.
Conclusion: A Path Forward for Applebee’s
In summary, Applebee’s is undergoing a significant transformation aimed at reversing its fortunes. The "Lookin’ Good" remodeling program, coupled with the expansion of dual-branded locations, represents a bold effort to enhance the customer experience and drive sales. While the broader industry context presents challenges, Applebee’s is leveraging its strengths and adapting to change, positioning itself for a more resilient future. The success of these initiatives will be crucial in determining the trajectory of the brand and its ability to thrive in an ever-evolving dining landscape.