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Applebee's Shuts Doors: 250 Locations Face Closure
26 Feb
Summary
- Applebee's is closing 250 U.S. locations in 2026.
- Rising costs plague franchisees, impacting dine-in experiences.
- Dual-branded Applebee's and IHOP restaurants show strong revenue growth.
Parent company Dine Brands announced plans to close 250 underperforming U.S. Applebee's locations in 2026. This decision follows recent closures in Indiana, Missouri, and New York, affecting long-standing establishments. Franchisees have reportedly faced challenges due to escalating fuel, food, and utility expenses.
Despite these closures, Applebee's President John Peyton stated that such actions are normal for a mature national system and do not define the brand's trajectory. He highlighted plans for new restaurant openings in 2026, emphasizing positive growth momentum. The company reported an 8.2% increase in revenue for the past year, with Applebee's sales showing a 1.3% rise compared to a decline in the previous year.
Dine Brands is actively pursuing a strategy of opening dual-branded restaurants, combining Applebee's and IHOP. The company has already opened 32 such locations in the U.S., with more under construction, and expects at least 50 new dual-brand openings in 2026. These combined locations generate significantly higher revenue, approximately 1.5 to 2.5 times that of single-brand sites. The company also aims to improve the guest experience through operational enhancements and increased manager visibility in dining rooms.
