About 9% of the workforce was cut at Dine Brands’ Pasadena, Calif. headquarters
Dine Brands, the parent company of Applebee’s, IHOP, and Fuzzy’s Taco Shop, has laid off about 9% of its nearly 600-employee workforce at its Pasadena, Calif. headquarters. The announcement came on Friday.
In a statement emailed to Nation’s Restaurant News, vice president of human resources Christie Cook said, “Dine Brands announced a reduction in its workforce as part of a strategic plan to better align with current market conditions. This decision was not made lightly. We deeply value the contributions of all our team members and are committed to supporting those affected during this transition.
“The layoffs involved about 9% of our team members across various departments, brand teams, and offices. Affected team members will receive severance packages, outplacement services, and other support to assist them in their career transitions.
“We remain focused on our long-term vision driving sustainable growth and success. We are grateful for the dedication and hard work of our team members and will continue to prioritize their well-being.”
The layoffs come after several tough quarters for its flagship brands. During the company’s third quarter earnings report in November, Applebee’s same-store sales fell by 5.9%, while IHOP’s same-store sales declined by 2.1%. Total revenues for the third quarter of 2024 were $195 million compared to $202.6 million for the third quarter of 2023.
During Q2, reported in August, Applebee’s same-store sales fell by 1.8%, while IHOP declined by 1.4%. Total revenues for Q2 were $206.3 million compared to $208.4 million for Q2 2023. In Q1, reported in May, Applebee’s same-store sales declined 4.6%, while IHOP’s same-store sales declined 1.7%. Total revenues for Q1 2024 were $206.2 million compared to $213.8 million for the first quarter of 2023.
In November, chief executive officer John Peyton said the company continues to experience consumer pullback and “the pressures of a highly promotional operating environment.” The brands have since adjusted their value strategies, and Applebee’s remains focused on a new prototype to cut costs and return to growth. Additionally, on an unadjusted basis, the company’s profit improved due to cost control initiatives during its last quarter. Dine Brands is expected to report its Q4 results in the coming weeks.
Contact Alicia Kelso at [email protected]
