Dine Brands is set to debut its first U.S.-based dual-branded IHOP-Applebee’s location in Seguin, Texas, a suburb of San Antonio, in early 2025. This site, developed with franchisee R. Hakim Corp., is part of Dine’s larger co-branding strategy, with up to 15 dual-branded U.S. locations planned for next year, a recent Restaurant Dive article reported.
Dine has already seen success with this approach internationally, where co-branded units typically generate 1.5 to two times the sales of single-brand locations. “It allows IHOP to shine in the morning and Applebee’s to thrive in afternoons and evenings,” said CEO John Peyton. “The menu leverages each brand’s unique offerings to maximize dayparts and provide more choices, variety, and value to guests.”
This dual-brand format could improve unit economics through shared resources like kitchens and cross-trained staff, potentially offsetting closures in markets where adding new locations may not be feasible. Applebee’s is poised to benefit the most, as many target sites are currently IHOPs.
In the face of recent sales declines for both IHOP and Applebee’s, Dine is also exploring short-term promotions to reinvigorate traffic. Applebee’s has partnered with the NFL and introduced limited-time deals, such as a $9.99 burger-and-fries offer, while IHOP has rolled out menu updates, including the September launch of Anytime Tacos.
Peyton hinted at upcoming initiatives for Applebee’s, including a new “Real Big Meal deal” to attract value-focused diners. As Dine navigates these innovations, the dual-branded model stands out as a strategic move to boost unit-level performance and maintain brand relevance amid shifting consumer demands.
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