More than 100 Applebee’s locations are expected to close after a disappointing second quarter.
Applebee’s parent company DineEquity has recently seen stock fall because of the alleged failure of the company to update the menu and restaurant setup. Sales in the first six months of the fiscal year have dropped seven percent, on the higher end of what the company expected to be facing.
In revised expectations set up August 10, system-wide same-restaurant sales performances will now range between negative six and eight percent. Before this month, only 40 to 60 Applebee’s locations were scheduled to close.
“We are focusing on operations and elevating the guest experience, whether in our restaurants or off-premise. We believe 2017 will be a transitional year for Applebee’s and we are making the necessary investments for overall long-term brand health and expect to see improvement over the next year,” said Richard J. Dahl, Chairman and interim Chief Executive Officer of DineEquity, Inc.
It is unclear to the public which restaurants will be closing, but Dahl also said the company will be investing in “the empowerment of our brands.” Dahl said this can be done by improving overall franchisee financial health, enhancing the supply chain, and closing underperforming restaurants.
DineEquity is also the parent company of IHOP, which also experienced a decline in sales. At IHOP, sales decreased 2.1 percent for the first six months of the fiscal year.
“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,” said Dahl, “IHOP is currently rolling out initiatives to address the convenience needs of our guests, which are inclusive of online ordering as well as accelerating tests for delivery and development of an IHOP mobile application. We believe these will create enhanced revenue channels.”
As for Applebee’s? The message of their brand remains the same: a focus on serving good food to good people. Founded in 1980, locations as of right now stretch as far as China, Brazil, Ecuador, and Jordan.
