In a recent development, an Applebee's restaurant in Calexico, California, which has been a staple in the community for over two decades, is set to close permanently on June 23. This decision, reported by local media, will impact nearly 30 employees who will lose their jobs as a result of the closure. The specific reasons for this shutdown have not been disclosed.
Wider Trend of Closures
The closure in Calexico is part of a larger trend, as Applebee's has been reducing its footprint across the United States this year. Other locations that have recently shut down include restaurants in Glenville, New York; McHenry, Illinois; and two in Evansville, Indiana. The chain has also faced challenges due to a franchisee's bankruptcy, with Neighborhood Restaurant Partners Florida closing 14 locations before filing for bankruptcy, followed by the closure of an additional 10 restaurants.
Strategic Shift by Dine Brands
Despite these closures, Dine Brands, the parent company of Applebee's, is shifting its strategy. The company is focusing on a dual-branded model that merges Applebee's with its sister chain, IHOP, in a single venue. Dine Brands aims to establish 80 of these combined restaurants by the end of this year, with plans for an additional 50 in 2025. Projections indicate the potential for up to 900 dual-branded locations over the next ten years.
Dine Brands CEO John Peyton elaborated on this initiative during a recent earnings call, stating that the integration of two complementary brands is intended to enhance sales, lower operational costs, and improve returns for franchisees. He emphasized that streamlining operations would allow staff to concentrate on providing an exceptional customer experience that embodies the values of both brands. Peyton also mentioned that the company plans to open more restaurants this year than in previous years, indicating a simultaneous process of closures and openings as the business evolves.
