IHOP and Applebee’s Could Be Merging Together

Two well-known restaurant chains may be merging. CBS News reported that Applebee's and IHOP, both owned by Dine Brands Inc., may soon have "dual-branded locations." This means they could share a back-of-house and a blended front house.

In an interview with Nation's Restaurant News, Dine Brands CEO John Peyton said they've already tested out the model on eight "prototypes" internationally. These locations include the newest Applebee's-IHOP restaurant in Leon, Mexico.

Peyton said the hybrid restaurants will have "discrete entrances" that allow guests to flow between Applebee's and IHOP.  "At breakfast, when there are more IHOP customers, customers can be seated in the Applebee's area and vice versa at dinner," he told Nation's Restaurant News.

Many other companies with various food chains under their belt have combined brands. In 2023, Focus Brands, which owns Auntie Anne's, Carvel, Cinnabon, Jamba, McAlister's Deli, Moe's Southwest Grill, and Schlotzsky's, announced that it had more than 175 dual-branded locations and was expanding that number.

IHOP Corp. agreed to buy Applebee's International Inc. in 2007 for $25.50 per share in cash, representing a total transaction value of approximately $2.1 billion. Dine Brands was formed as a result of the purchase.

Dine Brands, which owns Fuzzy's Taco Shop in addition to Applebee's and IHOP, says these three brands have more than 3,500 locations combined over 18 countries.

They developed 72 new Applebee's and IHOP franchisees but closed 75 restaurants in 2023. Restaurant Business reported that Applebee's finished 2023 with 25 to 35 fewer U.S. locations after identifying more underperforming stores. In 2020, PEOPLE magazine reported that IHOP had to close almost 100 U.S. locations due to financial struggles. So, maybe combining the two chains can help boost their revenue.

People on Reddit were quick to respond to the potential of an "IHOPees" or "AppleHOP." Someone said they could see it working. Another person mentioned how Applebee's is already busy enough as a stand-alone.

Lately, the subject of first dates occurring at chain restaurants has garnered significant attention. A recent survey asking women about their least preferred venues for first dates has ignited a debate on the internet. This list, which was shared on Instagram by @DuvalPromo, is reportedly the result of polling women to determine their least favored first-date locations.

Among the 28 establishments on the list are restaurant chains such as Applebee's, Chili's, and Denny's are featured. The top spot for the most unsuitable first date location is occupied by The Cheesecake Factory, followed by Applebee's, Chili's, Chipotle, and Olive Garden, rounding out the top five. It's worth noting that the list includes not only restaurants but also specific first-date situations, including "your house," family functions, a bar solely for drinks, and church.

Whether it's a first date or a casual meal, the question arises: Why do some people have reservations about restaurant chains?

According to Farm Credit Canada, a chain restaurant is defined as a business with four or more locations. These restaurants are typically large-scale operations with multiple branches, sometimes spanning different countries or continents.

The expansion of chain restaurants did not occur overnight. Many of them have humble origins in smaller, local establishments. For instance, the Cheesecake Factory, which currently operates over 300 restaurants in the U.S. and Canada, began as a small bakery in Detroit and eventually evolved into The Cheesecake Bakery in Los Angeles in 1972, according to their website. It wasn't until the late '90s and early 2000s that additional locations began to appear.

Critics often express their reservations about chain restaurants, and there are valid reasons for their concerns. Many people prefer supporting local businesses over large corporations, as chain restaurant food is often mass-produced and served uniformly across various locations. Dining exclusively at upscale or independent establishments offers a sense of social prestige, something to brag about, and the feeling of indulging in a unique experience. However, ultimately, it's all about eating a meal.

There's something comforting about knowing that, for the most part, you can find something familiar to eat at any time and almost anywhere. Maybe that's why singer Walker Hayes dedicated his song Fancy Like, to the simple joys of eating a chain like Applebee's. So, let's chat about some of the reasons people actually enjoy dining at chain restaurants.

One of the advantages of dining at a chain restaurant is the predictability that comes with it. Local, independent establishments can be more hit-or-miss, often offering a more limited menu selection, which makes them a riskier choice for a date or group outing. When you open the menu, you can expect to find the same menu items prepared and presented consistently. Chain restaurants usually follow uniform recipes and they use the same ingredients, equipment, and standardized training procedures. You can expect a consistent experience whether you're in one part of the country or another. Restaurant chains are like your reliable pals on a road trip. You spot their logo on an exit sign, and you know it's there. It's that simple convenience that makes chain restaurants a go-to option, no matter where you are.

For many people, chain restaurants served as the primary dining option simply because they were the most accessible. You know how the place will look, how the wait staff is dressed, and how you are expected to dress at chain restaurants, ensuring a familiar dining experience wherever you go. Many diners have a soft spot for the food we know and love. It's like a comforting experience. Chain restaurant grub often brings back memories of late-night munchies after Friday night football games, college hangouts, and road trips.

Chain restaurants tend to be easier on the wallet compared to standalone establishments with more specialized menus and daily chef's specials. Most of us keep an eye on our dining budget and wouldn't want to feel like we've emptied our pockets for a single meal. That's why diners appreciate restaurant chains with Happy Hour, Budget Menus, and Late-Night deals.

Many local places struggle to seat larger groups, especially if you've got more than four people in your party. Unless you've made a reservation or a special request, you might end up waiting a while for enough room to open up, regardless of the size of your party. Additionally, local establishments sometimes arrange tables in closer proximity to maximize their limited space. Not everyone's a fan of dining elbow-to-elbow with strangers and involuntarily eavesdropping on neighboring conversations throughout their meal.