Exploring the expansion strategy of the combined Applebee's-IHOP restaurant concept in the United States
Dine Brands Expands Dual-Branded Applebee's-IHOP Restaurants
Dine Brands, the parent company of popular restaurant chains Applebee's and IHOP, is set to expand its dual-branded locations across the United States and globally. By the end of 2025, the company aims to have 10-12 dual-branded Applebee's-IHOP restaurants in the U.S., with an additional 41 locations already operating internationally.
This ambitious expansion plan includes the opening of an additional 23 dual-branded restaurants in 2025 alone, with significantly more openings expected in 2026 as part of a nationwide expansion. The first U.S. dual-branded location was opened earlier this year in Seguin, Texas.
The dual-branded model merges the morning-focused IHOP with the evening-centric Applebee’s under one roof, offering a single kitchen, cross-trained staff, and a streamlined menu with 105 top-selling items from both brands. This approach has generated 2-3 times more profit per location than standalone restaurants.
By the end of 2026, Dine Brands expects to have "significantly more" than 12 dual-branded units based on its growth trajectory, although the company has not announced an exact target number for 2026 yet.
This dual-brand strategy complements rather than replaces standalone Applebee’s or IHOP restaurants, depending on local market conditions. The added flexibility of customers ordering both breakfast and dinner items throughout the day is boosting overall sales and increasing the visibility of the Applebee's brand.
Dine Brands Global is facing challenges in the restaurant industry, including pandemic-era debt, slowing foot traffic, labor shortages, and rising costs. However, the company's CEO has stated that they are seeing encouraging signs, including an increase in the number of higher-income guests and an increase in its most loyal customers at Applebee's during the most recent fiscal quarter.
This new strategy is part of Dine Brands' efforts to create a dual-branded model that allows them to serve customers throughout every daypart - breakfast, lunch, dinner, and late night. The choice of whether to implement the dual-branded concept depends on the market and competition. Franchise owners are making two to three times more money from the combined Applebee's-IHOP locations compared to what they previously earned from a single IHOP.
The dual-branded restaurant concept is proving to be a "significant growth engine" for both brands, but won't entirely replace old standalone locations. Chains including Chili's, TGI Friday's, Denny's, Ruby Tuesday, Rubio's Coastal Grill, and Red Lobster have either shuttered locations or filed for bankruptcy due to debt accumulated during the pandemic.
As more and more restaurant brands reinvent themselves with slimmer menus, changed appearances, and a new brand voice due to financial difficulties, Dine Brands' dual-brand strategy could be a promising approach for the future of the restaurant industry.
- The dual-brand strategy of Dine Brands, which combines the morning-focused IHOP with the evening-centric Applebee’s, has generated 2-3 times more profit per location than standalone restaurants, potentially boosting the company's revenue in the changing economy.
- As several restaurant chains struggle with debt accumulated during the pandemic, Dine Brands' expansion of dual-branded Applebee's-IHOP markets shows promise for navigating economic challenges and adapting to shifting consumer trends in sports and markets.
