Dive Brief:
- Dine Brands opened its first American dual-branded Applebee’s/IHOP restaurant Tuesday in Seguin, Texas, near San Antonio, the company said in a press release.
- The restaurant was built in partnership with franchisee Ramzi Hakim Group.
- Dine Brands said it would open 14 additional co-branded restaurants in the U.S. through 2026 by both redesigning single-branded units and building from the ground up. The company already franchises 13 Applebee’s/IHOP units outside the U.S.
Dive Insight:
Dual-branded locations could help boost same-store sales slumps seen across both Applebee’s and IHOP last year. These restaurant formats can bring in about 1.5 times the sales of a single-branded location, and cross-trained staff and shared menus can yield operational efficiencies, Dine has previously stated.
The dual-branded restaurant will serve typical menu items from both Applebee’s and IHOP that “can be mixed, matched and ordered any time of day” and will also offer new exclusive items. The Buffalo Chicken Omelette and Ultimate Breakfast Burger, for example, will only be available at co-branded locations, according to the press release.
“With our dual-branded restaurant, we are combining the strengths of both brands to create a unique and innovative dining experience that offers choice, variety, and value to guests,” Dine Brands CEO John Peyton said in a statement. “Our international success with this concept has shown that our brand menus complement each other, providing something for everyone, from early mornings to late nights.”
Guests will have the option to pick from two distinct dining areas that reflect either traditional Applebee’s or IHOP restaurant designs, with shared areas including the host stand and bathrooms. The location has a single kitchen and back-of-house area.
Other restaurant companies, including GoTo Foods and Fat Brands, also use co-branding as a way to boost sales. Fat has been particularly focused on this strategy since many of its brands work well with each other. It recently debuted its first tri-branded Great American Cookies, Marble Slab Creamery and Pretzelmaker in January. Fat has over 100 co-branded Fatburger/Buffalo's Express restaurants, as well as over 160 Great American Cookies/Marble Slab Creamery units.
