CEO John Peyton has said the restaurant creates twice as much revenue as a traditional standalone IHOP or Applebee’s
Dine Brands – parent company of Applebee’s, IHOP, and Fuzzy’s Taco Shop – will make its debut in Honduras Sept. 16 with a dual-branded Applebee’s/IHOP restaurant through a multi-unit development agreement with franchisee BLT Global Brands. The new restaurant will be located in San Pedro Sula, Honduras, and will mark the company’s 13th dual-branded restaurant across seven markets: Mexico, Canada, United Arab Emirates, Kuwait, Saudi Arabia, Peru, and Honduras.
“We’re excited to bring IHOP and Applebee’s to Honduras. The country’s vibrant culture and growing economy make it an ideal location for this dual-branded concept, offering a unique blend of comfort and quality in a lively and inviting dining atmosphere,” BLT Global Brands’ CEO Thomas Christopher Talarico said in a statement.
The new location features two distinct IHOP and Applebee’s branded dining areas for guests to choose from, while providing efficiencies for franchisees, the company said.
“By leveraging IHOP’s morning popularity and Applebee’s evening appeal, we can cover all dayparts and bring delicious and memorable dining experiences with world-class service to guests every day. So far, we have been pleased with the improved overall performance and returns of our dual-branded restaurants,” Dine Brands’ chief development officer and president of international Scott Gladstone said in a statement.
In a recent interview, Dine Brands’ CEO John Peyton said the dual-branded locations create an efficient back-of-house “flow” that befits the two brands’ complementary dayparts. This is helping to generate twice as much revenue as a traditional standalone IHOP or Applebee’s restaurant with the same square footage, he said.
“You’re getting two for the size and space of one. They have a shared kitchen and a red side and a blue side for Applebee’s and IHOP, and a purple in the middle, so when you walk into the restaurant, you’re greeted by a host who then seats you on either side depending on which restaurant you prefer,” Peyton said.
That said, customers can order from both menus should they choose to chase down their Cinna-A-Stack with a Dollarita – the staff is cross trained for such experiences. Still, this concept is less about creative meal mashups and more about efficiencies.
“The real beauty of it is for the franchisee that owns that restaurant. This activates four dayparts throughout the day,” Peyton said. “And so, what we are demonstrating oversees is you’re adding IHOP a.m. to Applebee’s p.m. and you’re getting 2x or more of revenue in the same box.”
Dine Brands International has recently secured agreements to develop at least 21 new locations, 13 of which will be dual-branded, in various international markets. The new locations include conversions of existing single-branded restaurants as well as new restaurants in both traditional and non-traditional channels such as airports and travel centers. The first dual-branded concept is expected to open in the United States market in the first quarter of 2025.
Contact Alicia Kelso at [email protected]
