Up to 160 Applebee’s and IHOP locations to close nationwide
Published at
The parent company of Applebee’s and IHOP plans to close up to 160 restaurants.
Some 105 to 135 Applebee’s restaurants will close, up from the 40 to 60 that parent DineEquity said would close in the first quarter. Also on the chopping block are an estimated 20 to 25 IHOP sites, up from about 18.
At the same time, the two chains now will open 125 restaurants globally between them in new locations, DineEquity said.
Applebee’s “remains out-of-favor with casual-dining consumers….Sister concept IHOP may be feeling the effects of DineEquity’s struggles as well,” said Instinet analyst Mark Kalinowski in a report released Friday.
But DineEquity officials say the painful job of closing restaurants will help in the long run.
“We are investing in the empowerment of our brands by improving overall franchisee financial health, closing underperforming restaurants and enhancing the supply chain,” interim CEO Richard Dahl said in a statement.
The company declined to release a list of locations that will be shuttered.