The company that owns Applebee’s and IHOP announced today, August 10, it plans to close up to 160 locations, while also opening new locations.
Dine Equity also announced a new CEO, Stephen P. Joyce Effective Sept 12.
“Steve has a long and proven track record of successfully leading global consumer franchised businesses. While serving as chief executive officer of Choice Hotels, Steve was instrumental in developing a robust performance-based culture, placing an emphasis on agility and innovation and creating momentum and opportunity for the company, franchisees and shareholders. He was also responsible for driving significant growth during one of the most challenging markets in the industry’s history. Throughout his three decades of senior leadership in the hospitality and restaurant industries, Steve has accumulated a wealth of experience in franchising,
marketing, operations, finance and development. These skills ideally position him to execute upon and enhance our turnaround initiative for Applebee’s and our growth plans for IHOP,” saidC aroline W. Nahas, lead Director of DineEquity, Inc.
“Importantly, Steve is well aware of the efforts underway to re-empower and place on a solid growth course both the Applebee’s and IHOP businesses. In his role as a member of the Board of Directors, he has developed a deep understanding of our business and brands and a commitment to the well-being of our franchisees and shareholders. I look forward to working with him in his new role,” said Richard J. Dahl, Chair of the Board of Directors.
“Over the last five years, I have seen DineEquity, Applebee’s and IHOP experience both incredible success and challenging periods, like the one we are in today,” said Joyce. “During my time as a director, I’ve come to understand many of the strengths, weaknesses and opportunities before us. I guess you could say I’m coming into this eyes wide open and what I see is a future filled with tremendous possibilities. With a talented management team, a committed franchisee base, and a strong group of shareholders, I look forward working to stabilize performance at Applebee’s and identify new pathways to growth for IHOP.”
Dine Equity said it could close between 105 to 135 locations but also plans to open 20-30 new restaurants, for a net closure of about 75 locations.
“We are investing in the empowerment of our brands by improving overall franchisee financial health, closing underperforming restaurants and enhancing the supply chain. We are focusing on operations and elevating the guest experience, whether in our restaurants or off-premise. We believe 2017 will be a transitional year for Applebee’s and we are making the necessary investments for overall long-term brand health and expect to see improvement over the next year,” said Richard J. Dahl, Chairman and interim Chief Executive Officer of DineEquity, Inc.
It was also announced that IHOP will close up to 25 restaurants, but at the same time is planning to open 80-95 new locations.
“IHOP remains on solid ground, despite soft sales this quarter. I am optimistic about the growth in both effective franchise restaurants and system-wide sales. IHOP is currently rolling out initiatives to address the convenience needs of our guests, which are inclusive of online ordering as well as accelerating tests for delivery and development of an IHOP mobile application. We believe these will create enhanced revenue channels,” said Dahl in a statement.
There are 10 Applebee’s and 19 IHOP restaurants scattered across Massachusetts.
It’s not yet clear which locations will be closed.