As many as 135 Applebee’s and 25 IHOPs could close in the next year due to ‘poor sales’. The parent company of both restaurants, DineEquity, explained that 2017 is a “transitional year” for the company.
“We are making the necessary investments for overall long-term brand health and expect to see improvement over the next year.” Interim CEO Richard J. Dahl of DineEquity said, noting that Applebee’s isn’t struggling as much. “IHOP remains on solid ground, despite soft sales this quarter. I am optimistic about the growth in both effective franchise restaurants and system-wide sales.”
The number of Applebee’s restaurants set to close is more than double of the original estimate! The decision to close down a franchise comes from a few standards including ” franchisee profitability, operational results and meeting our brand quality standards” according to the press release.
There’s been a 7-percent decline in sales for Applebee’s during Q1 and Q2 of the 2017 year. IHOP has only declined 2.6 for the second quarter, although Applebee’s lost 6.2 percent of sales in Q2 specifically.
Weird enough, the press release hoisted the stock of parent company DineEquity up four percent.
Where are we going to go for our half-priced apps and (limited) all you can eat pancakes?