Flip'd by IHOP: Why Fast Casual Spinoff Concepts are the Latest Trend for Full-Service Dining Brands

It is no secret that fewer and fewer people are sitting down at restaurants to eat. With online sales booming and third-party partnerships popping up all over the foodservice space, many casual dining franchisors are struggling to keep up with the times. 

This week, IHOP announced the debut of a new fast casual concept called Flip'd, with its first store slated to open in Atlanta in April of 2020. Flip'd will be a standalone brand within the IHOP portfolio?, and sites in New York City, San Francisco, Denver and Washington, D.C. are also under consideration. 

Instead of IHOP’s usual sitdown customer, the fast casual Flip’d concept will target the to-go and delivery crowd with guests ordering from a digital kiosk, directly at the counter or online. The menu is inspired by IHOP favorites and will include a build-your-own pancake bar with mix-ins and toppings, egg combos and egg sandwiches, made-to-order breakfast burritos, Ultimate Sandwiches such as the Black Angus Steakburger and Buttermilk Crispy Chicken, a variety of coffee and juices and grab-and-go salads and wraps.

While the full-service dining segment struggles with mediocre same-store sales, these kind of fast casual spinoff concepts are becoming a very popular growth strategy for franchisors. 

In February of 2019, The Cheesecake Factory opened an Asian fast casual concept called Social Monk Asian Kitchen. That same month, Hooters announced its fast casual concept Hoots. In May, Famous Dave’s* launched its first fast casual restaurant in Tuscon, Arizona. Cracker Barrel acquired fast casual breakfast restaurant Maple Street Biscuit Company for $36 million in October. Outback also offers a fast casual concept, Aussie Grille, within international markets.

These spinoff concepts allow full-service dining brands to veer into the growing fast casual segment by offering customers quicker options and a better online ordering and delivery platform. The new concepts also allow franchisors to cater to the on-to-go crowd. In fact, IHOP has been expanding into travel centers recently, signing its largest franchise agreement ever to open 94 units over five years with TravelCenters of America.

So, will Flip’d be the IHOB we were all waiting for? Only time will tell.