Dine Brands has launched a reimaging program at Applebee’s called “Lookin’ Good,” Dine Brands CEO John Peyton said on the company’s earnings call Wednesday. Peyton described the Lookin’ Good program as a multi-year effort to ensure all the company’s restaurants exceed consumer expectations for look and feel.
The remodel program will kick off with 30 of the 47 Applebee’s units Dine took over from franchisees in November, Peyton said. Five of the remaining restaurants will be converted to dual-branded Applebee’s/IHOP units.
Dine intends to refranchise those 30 restaurants once they’ve been remodeled. The company has already achieved significant franchisee support for the remodeling program, Peyton said.
“Six of our top 10 franchisees, representing 57% of the Applebee’s system, have already elected to accelerate remodels of their restaurants by the end of 2025 based on the Lookin’ Good program,” Peyton said.
Applebee’s also has created a new prototype, which will offer a contemporary appearance and optimize its off-premise business. Off-premise sales made up 21.6% of its business last quarter, according to an earnings release. It expects to build its first restaurant with this new prototype this year, Peyton said. More details will be shared during the second quarter.
Applebee’s has struggled with store closures and declining same-store sales. Since 2021, while IHOP’s store base has grown modestly, Applebee’s has experienced a slow but substantial erosion of its store base. The chain dropped from 1,578 stores in 2021 to 1,501 in 2024, according to the brand’s SEC filings.
Applebee's and IHOP domestic unit count 2021 to 2024
Dine is projecting a loss of 20 to 35 net Applebee’s restaurants, and somewhere between 10 net new openings and 10 net closures for IHOP in 2025, according to its Q4 earnings release. This is a slowdown in year-over-year net closures for Applebee’s, which saw 35 net domestic restaurant closures in 2024, according to Dine’s 10-K.
Vance Chang, Dine’s CFO, anticipates the brand will see an increase in “gross openings from dual-branded domestic openings and new development agreements for standalone Applebee's restaurants.”
Dual-branding, which Dine brought to the U.S. in February from international markets, is now key to Dine’s growth.
“The dual brand concept is now a core pillar of our development strategy, and we're optimistic about the long-term upside potential,” Peyton said. “On average, we've seen these locations achieve 1.5 to 2 times the revenue compared to a single brand restaurant.”
An IHOP in Seguin, Texas that was renovated into a dual-branded restaurant saw thrice the sales in its first week as it typically generated as a standalone IHOP, Peyton said.
Dine plans to open 12 to 14 dual-branded locations in the U.S. in 2025, though Peyton said franchisee demand was higher.
Despite sunnier development plans, Applebee’s sales have struggled. Sales dropped 4.7% year over year in Q4, according to an earnings release, marking its seventh consecutive quarter with year-over-year same-store sales declines. While IHOP outperformed Applebee’s in these quarters, its comparable sales fell as well.
Applebee's and IHOP domestic same-store sales 2023-2024
Other brands have looked to remodels in recent years to boost sales. Burger King’s renovation program is the most prominent example, with renovated stores seeing a mid-teens sales lift. But Bloomin’ Brands also wants to remodel stores.
Like Dine, Bloomin’ laid off a significant fraction of its corporate workforce this year. Bloomin’ is planning to slow down its new unit openings significantly to free up $40 million to finance remodels at Outback Steakhouse. Dine didn’t share significant details about what the Applebee’s remodel program entails.
But Dine has other ways to stem the loss of consumers. Peyton highlighted Applebee’s Really Big Meal Deal as a partial success in Q4, despite the year-over-year sales drop.
That deal “represented 20% of transactions and boosted on-premise sales and ticket volume growth. This supported a slight improvement in traffic and sales compared to Q3,” Peyton said. Applebee’s will launch a new value platform in the second half of 2025, Peyton said.
“As part of this effort, you can expect us to build on our fan favorite Two for $25 deal, and we'll also continue to evolve the Really Big Meal Deal,” Peyton said. The value plays will be supported by new menu items, including LTOs, and a significant investment in social media.
