Is Applebee’s closing stores in 2024? Applebee’s Restaurants, LLC. is a famous American company. Anyone who has ever been to an Applebee’s knows they always provide a reliable American dinner at an affordable price. The company serves burgers, ribs, wings, and dollar margaritas and has recently struggled to stay open at many locations.
Applebee’s shuttered 46 sites in 2023 alone due to poor performance. In 2024, they plan to close further locations.
Dine Brands Global, the restaurant’s parent company, expects to close 25 to 35 more Applebee locations in 2024. This was announced by Applebee’s president, Tony Morale, during a fourth-quarter earnings call. In this article, we will learn more about Applebee’s closing stores.
What happened to the casual dining chain?
Applebee’s describes itself as a “neighborhood grill and bar.” However, it shows up in fewer neighborhoods. The restaurant brand is well-known for its appetizers, meal packages, and cocktails. This casual eating chain has closed hundreds of locations since 2017. It had high hopes for a comeback in 2023. Last year, Applebee projected that its financial situation would worsen by the end of 2023.
Dine Brands predicted that by the end of 2023, the chain would have lost ten to twenty locations. Compared to 2022, that represented an even more significant drop in Applebee’s store numbers. It had nine fewer stores at the end of 2022 after shutting down 13 and adding four new ones.
In 2023, Tony Moralejo stated, “It’s not where we want to be in the future.” Moralejo said that high land acquisition and building expenses ” lowered our ability to begin new unit growth. This was why new Applebee’s sites had low returns on investment (ROI).
Moralejo’s previous experience with restaurant brands indicates that franchisees’ belief in “an attractive value proposition” determines how new restaurants develop. Ensuring the success of the chain’s franchisees is Moralejo’s primary goal in the future.
He wants to work closely with franchisees and create new, attractive development opportunities for the entire Applebee system.
At the same time, Applebee has tried to keep pulling in price-conscious customers with discounts and promotions. For example, it restored a client’s $ favorite offer in February 2023 for $1. Additionally, the brand restored its themed Saintly Sips cocktails in time for St. Patrick’s Day. Instead of the $5 price tag from when they first appeared in 2022, the beverages cost $6 in 2023. At last, the popular chain closed 46 locations in 2023.
Plans for Applebee’s restaurant closures in 2024
Applebee’s is preparing to close hundreds of locations in 2024. Now, some regions of the nation will need to find a new favorite place to eat burgers and appetizers.
During an earnings call on February 28, Dine Brands predicted 25 to 35 net restaurant closures in 2024.
Tony Moralejo claims that many of the restaurants they decide to close are situated in lagging trade areas. He continues that closing a restaurant is “a challenging decision.” He also states that it is a “last resort” for the business and its franchisees.
Applebee’s has been shrinking significantly in recent years. This year’s scheduled closures will continue that trend. Since 2017, the firm has closed hundreds of sites to get rid of failing restaurants.
Despite its plans, Applebee failed to meet its growth targets for 2023. But it was supposed to resume operations after these wide closures. According to websites, it had 36 fewer restaurants at the end of the year than at the beginning.
As a result of the recently disclosed shutdown plans, Applebee will also be unable to resume its expansion plans in 2024. On the earnings call, John Peyton, President and CEO of Dine Brands, highlighted that
“Restoring Applebee’s net unit growth remains a top focus.”
The company aims to do this, in part, by developing a new restaurant prototype. It would give its franchisees a higher return on investment (ROI). In a recent interview, Peyton told Nation’s Restaurant News that Dine Brands should have disclosed more details about the new prototype. But they intend to open the latest restaurants in 2025 “and beyond.”
In January, Dine Brands added the role of chief development officer. He oversees the expansion of Applebee’s and its sister brands, IHOP and Fuzzy’s Taco Shop. Scott Gladstone, the company’s international president, was promoted to the role.
Closure of Applebee’s restaurant in New York:
Applebee’s restaurant in New York is set to close in just a few days. It served the devoted customers in that location for more than a decade. On May 19, the family-friendly establishment in Hudson will close its doors for the last time.
According to ABC affiliate WTEN, franchisee officials disclosed that they have enjoyed servicing diners in the area for the past 15 years. They also expressed thanks for the regular flow of customers who had come through the doors over the years.
T.L. Cannon, spokesperson, told The Daily Gazette:
“We hope to see you at our nearby restaurants throughout the Albany and Hudson Valley markets.”
Workers who would be affected by the closure have been offered other positions. However, news of the shutdown has caught followers off guard.
One diner said, “We’ve never had a bad experience there. Also, the staff were all so friendly and provided good service!” “It will make my son sad.” A mother continued, “He enjoyed everything there. Also, diners expressed concern for the staff who will be impacted.
Applebee’s changing its direction
Dine Brands has disclosed that the restaurant collaborates with IHOP to test a new idea. The two chains will now share the same structure and back-of-house facilities, such as the kitchen. The change is meant to reduce expenditures while also increasing their numbers.
For example, Mr. Peyton told Nation’s Restaurant News that the two brands will work together to maximize profits. “At breakfast, when there are more IHOP customers, the customers can be seated in the Applebee’s area. Thus, it will be vice versa at dinner.”
The new concept has eight current locations. Also, it generates twice the revenue of a regular IHOP or Applebee’s.
Dine Brands plans to deliver a prototype to the US within 12 to 24 months. Customers may see joint IHOP and Applebee’s businesses as early as 2025.
Applebee’s recently faced criticism after its Date Night Pass sold out in under a minute. Not only are restaurants closing, but a big retailer is expected to declare bankruptcy, which could result in shutters.
Conclusion
Applebee’s is one of many restaurants that want to close some of its locations by 2025. With the closures apart, we have some good news as well. In 2025, Dine Brands Global, which also owns IHOP, will begin developing merged Applebee’s and IHOP restaurants. The fresh idea includes eight current locations. It generates twice as much income as a normal IHOP or Applebee’s.
The goal with these is to draw customers from both brands while just paying for one restaurant’s running costs. Only time will tell whether that is enough to save the once-expanding but now-shrinking chain.