As many as 135 Applebee’s restaurants, 25 IHOP restaurants could close due to poor sales
MILWAUKEE — DineEquity, Inc., the parent company of Applebee’s and IHOP said in a press release Thursday, August 10th the company could close as many as 135 Applebee’s restaurants, and 25 IHOP restaurants this year due to poor sales.
In the release, DineEquity notes that these are revised expectations for Applebee’s and IHOP closures. The company’s CEO in the release said 2017 will be a “transitional year” for Applebee’s, and said “we are making the necessary investments for overall long-term brand health and expect to see improvement over the next year.”
He added “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.”
For Applebee’s it compares to previous expectations for closures of approximately 40 to 60 restaurants. For IHOP, it compares to a previous expectation for the closure of approximately 18 restaurants.
Company officials said in the release “the expected closures will be based on several criteria, including franchisee profitability, operational results and meeting our brand quality standards.”
The press release notes a 7% decline in sales for Applebee’s during the first six months of 2017.
Additionally, IHOP’s sales declined 2.6% for the second quarter of 2017.
Applebee’s sales declined 6.2% for the second quarter of 2017.