Dine Brands Global launches dual-branding concept to enhance dining experience and operational efficiency
In a groundbreaking move within the restaurant industry, IHOP and Applebee’s are set to merge their dining experiences into co-branded locations. This innovative concept, introduced by their parent company Dine Brands Global, features shared cooking areas and blended dining spaces while maintaining distinct entrances for each brand. The strategy aims to optimize operational costs and attract customers throughout the day by leveraging the unique strengths of each brand.
CEO John Peyton revealed that Dine Brands Global has already introduced eight prototype locations of this dual-branding concept internationally, with the latest opening in León, Mexico. The concept allows for flexible seating arrangements, accommodating IHOP’s breakfast crowd within Applebee’s space during the morning and vice versa during dinner hours.
Embed from Getty ImagesThis strategic move is part of Dine Brands’ effort to rejuvenate its portfolio in the face of shifting consumer preferences and escalating operational costs. Despite closing numerous Applebee’s outlets in recent years, including 46 in 2023, Dine Brands remains optimistic about its future growth. The company plans to open 25 new Applebee’s restaurants in collaboration with Flynn Restaurant Group, featuring modern designs and innovative elements like robotic beer dispensers.
IHOP, on the other hand, continues to demonstrate strong performance and growth, with 46 new locations inaugurated in the U.S. last year. Peyton views IHOP as a market leader poised for further expansion.
While specific details regarding the timeline for introducing these co-branded locations in the U.S. remain undisclosed, Peyton affirmed the company’s intention to eventually bring this model to American consumers. As Dine Brands navigates the evolving landscape of the restaurant industry, this collaborative approach between IHOP and Applebee’s represents a novel strategy aimed at enhancing customer experiences and achieving operational synergies.
