Dive Brief:
- Tony Moralejo will leave his position as Applebee’s president on March 4, but remain with the chain until June 4 as a special advisor to aid the transition, according to a notice filed with the Securities and Exchange Commission by parent company Dine Brands.
- Dine Brands CEO John Peyton will take the role of interim president for the casual dining brand. The company is conducting a national search for a leader with experience with restaurant operations, marketing and brand stewardship.
- Applebee’s, like Dine’s other brands, has struggled to generate sales momentum in recent quarters. Last week, Dine announced it laid off 9% of its corporate workforce.
Dive Insight:
When Moralejo took the post at Applebee’s in January 2023, the brand was looking to reduce construction costs as a means of increasing franchise development and was trying to improve its menu innovation. Now, the chain is toying with the idea of building dual-branded IHOP-Applebee’s units and struggling to return to same-store sales growth despite strong promotions like the Dollarita, according to Dine’s most recent earnings call.
According to the company’s most recent 10-Q, Applebee’s same-store sales slipped 5.9% in Q3 2024, relative to the year-ago period. On the Q3 earnings call, Moralejo said the brand was working on an integrated value platform to address casual dining’s ongoing trouble with attracting diners.
“The challenge at Applebee's isn't just to figure out what is the next Dollarita, but it's to build more brand relevancy and saliency with our guests. And we're going to do that with this new platform,” Moralejo told analysts.
Peyton, in the announcement of Moralejo’s departure, expressed gratitude for Moralejo’s leadership.
“He has navigated a challenging economic environment, led an outstanding team, and strengthened our relationships with franchisees.” Peyton said in the statement.
