Dine Brands to Launch Combined Applebee's-IHOP Restaurants

Dine Brands Global is plans to combine its Applebee's and IHOP chains under one roof. The company, which owns both popular restaurant brands, announced during its Q4 2023 earnings call that it will launch co-branded dining establishments featuring combined kitchens and seating areas.

"At breakfast, when there are more IHOP customers, customers can be seated in the Applebee's area and vice versa at dinner," CEO John Peyton explained to Nation's Restaurant News. The new dual locations will have discreet entrances to keep the IHOP and Applebee's sections separated, but open up during peak hours to increase overall seating capacity.

While no specific openings have been set yet for the U.S. market, Dine Brands has already tested the co-branded concept internationally. "We have launched eight prototypes in international markets, including our most recent one opening in January in Leon, Mexico," Peyton said.

So far, the joint locations seem to be a hit. Peyton noted on the earnings call that at these combo restaurants, "on average...the revenues for the same size box as one brand or the other is two times or more what it was before."

The successful international tests have Dine Brands "contemplating introducing this concept" to America too, according to Peyton. As he told FOX Business, the company "will continue to monitor the success of this test concept and will consider options for further expansion in the US in select locations if and when it makes sense to do so."

The co-branded restaurants could allow the chains to capitalize on all "four day parts" as Peyton put it. It remains to be seen if the concept will be rolled out nationwide, but it's an intriguing idea that could be a win for both brands - and diners too.